business plan shoe store

Shoe Store Business Plan Template

Written by Dave Lavinsky

Shoe Store Business Plan

You’ve come to the right place to create your Shoe Store business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Shoe Store businesses.

Below is a template to help you create each section of your Shoe Store business plan.

Executive Summary

Business overview.

Sports Express is a startup athletic shoe company located in Austin, Texas. The company is founded by Don Harrison who has experience in selling and marketing shoes. Now, with the expertise of knowledge and business acumen, Don has determined he can confidently start and effectively grow a successful athletic shoe company. Don believes his experience of strategic growth, marketing skills, financial capabilities, and wide and deep knowledge of shoe sales and marketing practices will provide everything needed for long-term growth and profitability.

Sports Express will provide a comprehensive array of athletic shoes for a wide variety of clients. Sports Express will be the largest athletic shoe store in Austin, providing services and products to each client while supporting the strategic goals of the company. Sports Express will be the ultimate choice in Austin for customers to ensure that every desire of the customer for excellent athletic shoes is fully and completely met.

Product Offering

The following are the products and services that Sports Express will provide:

• Personalized shoe sizing service
• Express delivery of shoes ordered online
• 24/7 reservation system to place shoes “on hold”
• Wide selection of shoes for men, women and children
• Coordinated nationwide search for select high-end shoes
• Every well-known brand of athletic shoes held in inventory
• Online ordering system and website assistance

Customer Focus

Sports Express will target all individuals in the greater Austin region. They will target men and women athletes who play traditional and on-trend sports. They will target men and women who enjoy recreational activities. They will also target children who play traditional and on-trend sports. They will target children who play recreational activities. They will target teams, leagues and sports organizations. They will target public and private schools. No matter the customer, Sports Express will deliver the best service, products and profits.

Management Team

Sports Express will be owned and operated by Dan Harrison. He recruited his former associate, Taylor Anderson, to be his Retail Manager, assisting customers and overseeing the retail business in operations. He also recruited his sister, Tami Harrison, to be the bookkeeper and back office manager for the company.

Dan Harrison holds a ten-year history of sales and marketing athletic shoes on behalf of a national chain of stores. During his employment, he was often given the yearly award of “Highest Sales Achievement,” and he secured the highest sales commission for three of the past ten years. His customers enjoyed his assistance and thorough knowledge of athletic shoes and many have now promised to move with him when he opens his Sports Express business.

Taylor Anderson is a former athletic business manager, overseeing operations in three retail stores on behalf of a national chain of stores. He is well-known for his excellent management of the sales staff, as well as his courteous manner with customers, always offering the highest level of expertise and care in operations.

Tami Harrison is a graduate of Texas A & M University, where she earned her bachelor’s degree in retail finance. She was recently promoted from her former position as an account manager in a national finance company, but chose to follow her brother, Dan, in his well-developed plan to build and grow Sports Express.

Success Factors

Sports Express will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team at Sports Express
• Comprehensive selection of athletic and sporting shoes for all ages
• Customized online service and express delivery of online orders
• Specialized shoe sizing in-store service
• Sports Express offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.

Financial Highlights

Sports Express is seeking $200,000 in debt financing to launch its Sports Express business. The funding will be dedicated toward securing the store space and purchasing shoe inventory and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and costs for the print ads and marketing costs. The breakout of the funding is below:

• Store space build-out: $20,000
• Store equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Sports Express.

Company Overview

Who is sports express.

Sports Express is a newly established, full-service athletic shoe retail business in Austin, Texas. Sports Express will be the most reliable, fully-stocked, and well-staffed choice for athletic and sporting shoes in Austin and the surrounding communities. Sports Express will provide a comprehensive menu of products and services for any individual to utilize. Their full-service approach includes a comprehensive set of customized services and online offers.

  Sports Express will be able to effectively market and sell all major brand athletic and sports shoes. The team of professionals are highly qualified and experienced in selling athletic and sports shoes, along with accessories that complement shoes. Sports Express removes all headaches and issues of finding top-quality athletic shoes and ensures all issues of shoe-shopping and selection are taken care of expeditiously while delivering the best customer service.

Sports Express History

Sports Express is owned and operated by Dan Harrison, a former retail shoe company division manager. He has a business administration degree from the University of Washington and has worked within a national chain store company for ten years, effectively selling and marketing all major brands of shoes. Dan’s tenure in the national chain has given him the skills and knowledge required to venture out on his own and start his own company. While employed by the national chain business, Dan earned the trust and respect of customers and company associates alike, with many of them determined to follow Dan as he opens his new business.

Since incorporation, Sports Express has achieved the following milestones:

• Registered Sports Express, LLC to transact business in the state of Texas.
• Has a contract in place for a 10,000 square foot store in Austin’s newest shopping mall
• Reached out to numerous contacts to announce the formation of Sports Express
• Began recruiting a management staff of four and four sales associates to work at Sports Express

Sports Express Products & Services

The following will be the products and services Sports Express will provide:

Industry Analysis

The retail shoe industry is expected to grow over the next five years to over $304 billion. The growth will be driven by an increased interest in consumers to engage in athletic activities for both professional and personal reasons. This growing interest will result in the further development of shoe types to meet specific trends. The growth will also be driven by consumers who will choose individualized shoe designs and preferences as they achieve athletic goals. Over the next five years, technology will increase to include personalized services and shoe fit, which will also drive increased sales based on personal preferences.

Costs will likely be reduced as technology continues to evolve in manufacturing, providing customization in the make and model of athletic shoes, which allows customers to have a specialized shoe made personally to fit their own feet. Costs will also be reduced by the increase of manufactured athletic shoes. Costs will be reduced by advances in technology and software that increases productivity at the manufacturing level.

Customer Analysis

Demographic profile of target market, customer segmentation.

Sports Express will primarily target the following customer profiles:

• Individuals of all ages who seek athletic or sports-related footwear
• Individuals who play professional sports
• Children and teens who play in organized sports
• Schools and league organizations that support sports teams

Competitive Analysis

Direct and indirect competitors.

Sports Express will face competition from other companies with similar business profiles. A description of each competitor company is below.

The Outdoor Shoe Company

The Outdoor Shoe Company was formed in 1998 in Austin, Texas by Joe and Elise Cummings to provide selected shoe styles and types for those individuals who enjoy being outdoors. This includes customers seeking sports shoes, athletic shoes, recreational shoes for hunting, hiking, and shoes for water-based activities. The Outdoor Shoe Company started with one retail store and has now grown to over 20 retail stores throughout the state of Texas.

The Outdoor Shoe Company leadership team is determined to undercut the price of all competitors and the company does so, with certain exceptions, by contracting with manufacturers to sell overstocks and lightly-scuffed or “incorrect” shoes. The prices at The Outdoor Shoe Company are lower than their competitors; however, consumers are made aware that the shoes may be lacking in fit or cosmetic looks based on the purchasing premise.

Randall & Rodney Men’s Shoes

Randall & Rodney Men’s Shoes is a chain of shoe stores within Austin, Texas. The owners, Randall Marsten and Rodney Marsten, graduated from Texas A & M University, where they played on the football team representing the university throughout their school years there. Randall and Rodney determined that the business scheme that would work best for entrepreneurs would be a high-end men’s shoe company, offering multiple brands of shoes within the best shoe categories, including athletic and sports shoes.

There are four Randall & Rodney Men’s Shoe stores throughout Austin, with the majority of customers purchasing shoes that are made in Italy of leather with custom shoe soles that reflect the finest composition. The athletic shoe and sporting shoe sales occupy approximately one-fifth of all shoe sales and the brands carried within the store, while highly-sought, do not reflect the entire lines of shoes available to customers at lower price points.

Big 6 Shoe Company

Owned and operated by Sol Cordoza, the Big 6 Shoe Company carries the most well-known family brands of shoes within the Austin region. The pricing of inventory offers moderate costs for mid-range shoes and, while inventory does not include all high-end manufacturers, the Big 6 Shoe Company has established contracts with several youth sports organizations to supply soccer shoes, football shoes, and baseball shoes for students. This arm of the company has led to a major source of profit for the Big 6 Shoe Company. There are two retail stores within the company, both situated near malls and both approximately 10,000 square feet in size. Sol Cordoza began his company when his former employer of five years went out of business in the retail shoe market and Sol bought out the inventory and set up his own store.

Competitive Advantage

Sports Express will be able to offer the following advantages over their competition:

• Sports Express offers the best pricing in town. Their pricing structure is the most cost-effective compared to the competition.

Marketing Plan

Brand & value proposition.

Sports Express will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide a comprehensive package of products and service
• Customized services that guarantee customer satisfaction
• Online sales with generous stock inventory and availability
• Discounts for families and loyal customers
• Unbeatable pricing to its clients; they will offer the lowest pricing in the city.

Promotions Strategy

The promotions strategy for Sports Express is as follows:

Word of Mouth/Referrals

Dan Harrison has built up an extensive list of contacts over the years by providing exceptional service and expertise to his retail shoe clients. The contacts and clients will follow him to his new company and help spread the word of Sports Express.

Professional Associations and Networking

The management team of Sports Express will join all citywide organizations that represent opportunities for networking, including city and county associations. They will also join professional business organizations and non-profit foundations that support youth sports clubs and league play.

Print Advertising

Two weeks prior to the launch date, Sports Express will send a direct mail piece to every home, school and business within the greater Austin area, offering special discounts and incentives to prospective customers. Sports Express will also offer a discount to schools and sports groups during the first month of business that will offer additional price cuts for teams.

Website/SEO Marketing

Sports Express will fully utilize their website. The website will be well organized, informative, and list all the products and services that Sports Express provides. The website will also list their contact information and allow customers to order shoes online with express shoe delivery. Trained staff will answer calls and website questions on a 24/7 basis. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “athletic shoe company” or “sports shoes near me,” Sports Express will be listed at the top of the search results.

The pricing of Sports Express will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Sports Express. Operation Functions:

• Dan Harrison will be the owner and President of the company. Dan will oversee all staff and manage client relations. Dan has spent the past year recruiting the following staff:
• Sherri Rydell, Office Manager who will manage the office administration, client files, and accounts payable.
• Tami Harrison, Staff Accountant will provide all client accounting, tax payments, and monthly financial reporting.
• Adele Townsend, Marketing Manager who will provide all marketing for Sports Express and each client it serves.

Milestones:

Sports Express will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease retail space
• 5/15/202X – Finalize personnel and staff employment contracts for Sports Express
• 6/1/202X – Finalize contracts for Sports Express vendors
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into Sports Express retail store
• 7/1/202X – Sports Express opens its doors for business

Sports Express will be owned and operated by Dan Harrison. He recruited his former associate, Taylor Anderson, to be his Retail Manager, assisting customers and overseeing the retail business in operations. He also recruited his sister, Tami Anderson, to be the bookkeeper and back office manager for the company.

Financial Plan

Key revenue & costs.

The revenue drivers for Sports Express are the fees they will charge to customers for their products and services.

The cost drivers will be the overhead costs required in order to staff Sports Express. The expenses will be the payroll cost, rent, utilities, store supplies, and marketing materials.

Funding Requirements and Use of Funds

Sports Express is seeking $200,000 in debt financing to launch its athletic shoe company. The funding will be dedicated toward securing the store space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Customers Per Month: 800
• Average Revenue per Month: $94,500
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, shoe store business plan faqs, what is a shoe store business plan.

A shoe store business plan is a plan to start and/or grow your shoe store business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections. You can easily complete your Shoe Store business plan using our Shoe Store Business Plan Template here .

What are the Main Types of Shoe Store Businesses?

There are a number of different kinds of shoe store businesses, some examples include: Athletic shore store, Luxury shoe store, Budget shoe store, and Orthopedic shoe store.

How Do You Get Funding for Your Shoe Store Business Plan?

Shoe Store businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Shoe Store Business?

Starting a shoe store business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster. 1. Develop A Shoe Store Business Plan - The first step in starting a business is to create a detailed shoe store business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your shoe store business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your shoe store business is in compliance with local laws. 3. Register Your Shoe Store Business - Once you have chosen a legal structure, the next step is to register your shoe store business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 4. Identify Financing Options - It’s likely that you’ll need some capital to start your shoe store business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 7. Acquire Necessary Shoe Store Equipment & Supplies - In order to start your shoe store business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your shoe store business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful shoe store business:

• How to Start a Shoe Store

Shoe Store Business Plan Template

Written by Dave Lavinsky

Shoe Store Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their shoe stores.

If you’re unfamiliar with creating a shoe store business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a shoe store business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Shoe Store Business Plan?

A business plan provides a snapshot of your shoe store as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Shoe Store

If you’re looking to start a shoe store or grow your existing shoe store company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your shoe store to improve your chances of success. Your shoe store business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Shoe Stores

With regards to funding, the main sources of funding for a shoe store are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for shoe stores.

Finish Your Business Plan Today!

How to write a business plan for a shoe store.

If you want to start a shoe store or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your shoe store business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of shoe store you are running and the status. For example, are you a startup, do you have a shoe store that you would like to grow, or are you operating a chain of shoe stores?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overv iew of the shoe store industry.
• Discuss the type of shoe store you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of shoe store you are operating.

For example, you m ight specialize in one of the following types of shoe stores:

• Athletic shore store : this type of shoe store primarily sells athletic shoes for running, walking, training, basketball, etc.
• Luxury shoe store: this type of shoe store primarily sells high-end luxury brands of shoes. They are mostly dress shoes, such as women’s heels, pumps, and boots, as well as men’s loafers.
• Budget shoe store: this type of shoe store primarily sells affordable athletic, casual, and dress shoes at a discounted price. The brands are usually on the lower-end.
• Orthopedic shoe store: this type of shoe store primarily sells orthopedic shoes that focus on enhanced comfort and has features for people with foot pain or problems.

In addition to explaining the type of shoe store you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of customers with positive reviews, reaching X number of customers served, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the shoe store industry.While this may seem unnecessary, it serves multiple purposes.

First, researching the shoe store industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your shoe store business plan:

• How big is the shoe store industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your shoe store? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your shoe store business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals of all ages and families.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of shoe store you operate. Clearly, seniors would respond to different marketing promotions than families with young children, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Shoe Store Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r shoe stores.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes department stores, big box retailers, and consignment stores. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of shoe store are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for people of all ages and demographics?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a shoe store business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f shoe store company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide clothing, accessories, or a rewards program?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products you offer and their prices.

Place : Place refers to the site of your shoe store company. Document where your company is situated and mention how the site will impact your success. For example, is your shoe store located in a busy retail district, a mall, a standalone retail location, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your shoe store marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• TV Commercials
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your shoe store business, including taking inventory, ordering new products, customer interaction, cleaning the store, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your Xth shoe, or when you hope to reach $X in revenue. It could also be when you expect to expand your shoe store to a new city.  

Management Team

To demonstrate your shoe store’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing shoe stores. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a shoe store or successfully running a small retail business.

    Finish Your Business Plan Today!

Financial plan.

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you sell 5 shoes per day, and/or offer seasonal discount offers ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your shoe store, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a shoe store:

• Cost of shoe inventory and store supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store location lease or a list of shoes you plan to sell.  

Writing a business plan for your shoe store is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the shoe store industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful shoe store.  

Shoe Store Business Plan Template FAQs

What is the easiest way to complete my shoe store business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your shoe store business plan.

How Do You Start a Shoe Store Business?

Starting a shoe store business is easy with these 14 steps:

• Choose the Name for Your Shoe Store Business
• Create Your Shoe Store Business Plan
• Choose the Legal Structure for Your Shoe Store Business
• Secure Startup Funding for Your Shoe Store Business (If Needed)
• Secure a Location for Your Business
• Register Your Shoe Store Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Shoe Store Business
• Buy or Lease the Right Shoe Store Business Equipment
• Develop Your Shoe Store Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Shoe Store Business
• Open for Business

Learn more about how to start your own shoe business .

Don’t you wish there was a faster, easier way to finish your Shoe Store business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business plan consultant can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

Entrepreneurs & Small Business

Accelerators & Incubators

Business Consultants & Advisors

Educators & Business Schools

Students & Scholars

AI Business Plan Generator

Financial Forecasting

AI Assistance

Ai Pitch Deck Generator

Strategic Planning

See How Upmetrics Works  →

• Sample Plans
• WHY UPMETRICS?

Customer Success Stories

Business Plan Course

Small Business Tools

Strategic Planning Templates

E-books, Guides & More

• Sample Business Plans
• Retail, Consumers & E-commerce

Shoe Store Business Plan

Thinking of starting your own shoe store? A flexible business model and high-profit margins make it an excellent business venture. So well done.

But before you jump in, it’s crucial to have a detailed business plan in place to succeed. Besides helping you raise capital for your business, it will also act as a roadmap to help you navigate through the ups and downs of entrepreneurship.

Need help writing a business plan for your shoe store? You’re at the right place. Our shoe store business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Shoe Store Business Plan?

Writing a shoe store business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your business:

• This section may include the name of your store, its location, when it was founded, the type of shoe store business (E.g. athletic shoe store, casual shoe store, women’s shoe store.) etc.

Market opportunity:

• For instance, your product line may include types of shoes your business will sell, including loafers, athletic shoes, designer shoes, sandals, boots, etc.

Marketing & sales strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Business Overview

The business overview section of your business plan offers detailed information about your store. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business description:

• Vintage or second-hand shoe stores
• Comfort shoe stores
• Online shoe stores
• Children’s shoe stores
• Athletic shoe stores
• If your shop sells a variety of shoes, you may also mention it.
• Describe the legal structure of your shoe store, whether it is a sole proprietorship, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future goal:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, an athletic shoe store may cater to athletes, fitness enthusiasts, and outdoor enthusiasts.

Market size and growth potential:

Competitive analysis:, market trends:.

• For instance, there is a growing demand for sustainable and eco-friendly footwear as more and more people are becoming conscious of the environmental impacts of the products they purchase. Describe how you plan to serve this growing market.

Regulatory environment:

Here are a few tips for writing the market analysis section of your shoe shop business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Product offerings:

List the type of shoes your store will provide to its customers. For instance, your product line may include boots, casual shoes, sandals, designer shoes, dress shoes, etc. If you plan to carry specific brands, you can also include their names.

Inventory management:

Suppliers and vendors:, return policy:.

In short, this section of your shoe store plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique selling proposition (USP):

• For example, expert shoe fitting, a wide range of sizes and styles, high-quality and durable shoes, and sustainable and ethical products could be some of the great USPs for a shoe store.

Pricing strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your shoe shop business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your shoe store, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & training:

Operational process:, equipment & technology:.

• Explain how these technology and equipment help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their

Founder/CEO:

Key managers:.

• It should include the store manager, marketing manager, and other people involved in the business operations, including their education, professional background, and any relevant experience in the industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your business, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more.These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the shoe store, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your shoe or sneaker store business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample shoe store business plan will provide an idea for writing a successful shoe store plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our shoe store business plan pdf .

Related Posts

Clothing Line Business Plan

Beauty Supply Store Business Plan

Essential Components of a Business Plan

400+ Business Plan Template

Location Strategy for Business

Components of Customer Analysis

Frequently asked questions, why do you need a shoe store business plan.

A business plan is an essential tool for anyone looking to start or run a successful shoe store business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your shoe store.

How to get funding for your shoe store business?

There are several ways to get funding for your shoe store business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your shoe store business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your shoe store business plan and outline your vision as you have in your mind.

What is the easiest way to write your shoe store business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any shoe store business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

We earn commissions if you shop through the links below.  Read more

Back to All Business Ideas

How to Start a Shoe Store Business

Written by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on September 16, 2021 Updated on March 13, 2024

Investment range

$9,000 - $38,000

Revenue potential

$105,000 - $840,000 p.a.

Time to build

Profit potential

$52,000 - $252,000 p.a.

Industry trend

If you’re passionate about fashion and always on the lookout for the next big footwear trend, then opening your own shoe store may be a highly profitable use for your talents. Whether you focus on stylish stilettos or sleek sneakers, there are countless ways to capitalize on people’s love of shoes, which is why US footwear is an $81 billion market. 

To help you gear up for success, this step-by-step guide has all the information and insight you need to get your foot in the door and launch a successful shoe store business.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business is Right for You

Because a shoe store business will take a significant amount of effort and time to start, weighing the pros and cons is essential in measuring the risks and potential rewards.

Pros and cons

• Low to moderate startup costs
• Work the hours you choose from your own home
• Express your creativity in shoe designs
• Simple yet globally scalable business model
• Few regulations and compliance requirements
• Stocking many sizes gets expensive
• Unsold stock could mean sizable losses
• Product returns for online sales can be as high as 40%

Shoe industry trends

Did you know that the average American owns 14 pairs of shoes, from low-cost flip-flops to high-end footwear?(( https://www.psychologytoday.com/us/blog/the-science-behind-behavior/201510/how-much-are-your-shoes-really-costing-you ))

Industry size and growth

• Industry size and past growth – German data analyst Statista values the US shoe market at $92 billion.(( https://www.statista.com/outlook/cmo/footwear/united-states ))  
• Growth forecast – The market is expected to expand an additional 4% annually through 2027, according to Statista.
• Number of businesses – There are more than 28,000 shoe stores in the US, according to market analyst IBISWorld.(( https://www.ibisworld.com/united-states/market-research-reports/shoe-stores-industry/ )) 
• Number of people employed – The industry employs around 247,000 people.

Trends and challenges

Trends shaping the shoe industry include:

• Sharp rise in online sales, with Amazon alone accounting for 16% of the US market(( https://www.statista.com/statistics/197650/annual-shoe-store-sales-in-the-us-since-1992/ ))
• US exports to foreign markets are increasing sharply, with China and Vietnam representing a combined share of 47.3%

Challenges in the shoe industry include:

• Supply chain problems
• Steep import tariffs
• Rising production costs

Consumer spending

• Average consumer spend – On average, Americans buy 7-8 pairs of shoes each year.(( https://www.worldfootwear.com/news/americans-buy-75-pairs-of-shoes-per-year/708.html ))
• Potential customer base – There are nearly 260 million adult Americans.(( https://www.census.gov/library/stories/2021/08/united-states-adult-population-grew-faster-than-nations-total-population-from-2010-to-2020.html ))
• Average prices – A pair of shoes costs an average of $70.

How much does it cost to start a shoe store business?

The startup costs can be minimal or hefty depending on your start-up strategy. Starting your shoe store business will cost you between $9,000 and $38,000.

If you’re going for the minimum budget, you’ll most likely start from a home-based office with a strong e-commerce website and online stores at major marketplaces like Amazon and eBay. The major cost will be stocking your initial inventory of at least 100 pairs of shoes, plus marketing and website development.

The high-end budget might include an inventory of 500 pairs and renting out a commercial space for your brick-and-mortar store. 

How much can you earn from a shoe store business?

The revenue potential of your shoe business depends on your costs, marketing plan and sales volume. The average price for a pair of shoes is about $70, while shoe businesses often have a margin of around 50%. So for every pair of shoes you sell you should make about $35. 

As a home-based solopreneur making online sales, in your first year or two you might sell around 125 pairs each month. This would give you $105,000 in annual revenue and about $52,000 in profit. After a few years you might sell 1,000 pairs per month, but with a physical store and sales staff your margin would fall to around 30%. As a result, you would have about $840,000 in annual revenue and a tidy profit of a quarter of a million dollars. 

What barriers to entry are there?

The barriers to entry in a shoe business are fairly moderate. The industry faces minimal regulations and compliance requirements. However, the intensity of competition poses a considerable challenge to the new entrant. Well-established brands, local shoe stores, department stores and thousands of independent sellers on sites like Amazon, eBay, and AliExpress make it difficult to attract customers. Also, it can be hard to build customer loyalty in a saturated market with no switching cost to the client.

Related Business Ideas

How to Start a Sock Business

How to Start a Sunglasses Line

How to Start a Skate Shop

Step 2: hone your idea.

For a small to medium-sized start-up, the best way is to outsource production to a manufacturer. It will minimize your startup investment and relieve you of a lot of the stress and challenges that come with sourcing raw material, managing production staff, and overseeing operations.

Then once you have solidified a reliable customer base, you may consider shifting to in-house manufacturing. If you’ll explore outsourcing, you’ll likely partner with a manufacturing company outside the US. China, for instance, produces about half the footwear imports sold in the US.(( https://www.usitc.gov/research_and_analysis/trade_shifts_2019/footwear.htm ))

Now that you know what’s involved in starting a shoe store, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research shoe stores in your area and online to examine their products, price points, and customer reviews, as well as what sells best. You’re looking for a market gap to fill. For instance, maybe your local market is missing a great leather shoes and boots shop. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as vintage sneakers.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

A crucial decision is of course deciding which products to offer. You could focus on one type of shoe, such as heels, athletic trainers, sandals or boots. Or you could stock a wide variety of all these types of shoes. In addition, you might also offer related products, such as socks, shoelaces, shoehorns and more. 

How much should you charge for your shoes?

Your price should be based on your costs, overhead, and target profit margin. But remember to keep an eye on your competitors because your prices need to be in the vicinity of standard market rates. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

If you decide to focus on heels, your target market will be professional women, and you could find them on LinkedIn and Facebook. If you choose sneakers and athletic wear, your primary target demographic will be teens and young adults, and you could track them down on sites like Instagram and TikTok.  

Where? Choose your shoe store location

In the early stages, you’ll probably run your shoe store from home to keep costs low. But as your business grows, you’ll likely need to hire workers and rent out a physical storefront, and perhaps a production facility. Find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

Choose your shoe store location carefully. Look for a spot in a busy commercial district with high foot traffic, and consider the demographics of the area. Assess the competition and differentiate your store with unique brands or exceptional customer service.

Ensure the space is visually appealing and practical, and consider proximity to complementary businesses. By choosing the right location, you can establish a profitable and successful shoe store in the competitive retail industry.

Step 3: Brainstorm a Shoe Store Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “shoes” or “boots”, boosts SEO
• Name should allow for expansion, for ex: “Footwear Frenzy” over “High Heel Haven”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Shoe Store Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Provide a brief overview of your shoe store, outlining its focus on offering a diverse range of footwear, target customers, and strategies for success.
• Business Overview: Describe your shoe store’s range, including types of footwear offered, such as casual, formal, sports, and specialty shoes.
• Product and Services: Detail the variety of shoes and related accessories you plan to sell, and any additional services like fitting consultations or custom orders.
• Market Analysis: Assess the demand for footwear in your area, identifying key customer segments and current fashion trends.
• Competitive Analysis: Compare your store to other shoe retailers in the area, emphasizing your unique selection, pricing, or customer service.
• Sales and Marketing: Outline your strategies for attracting customers, like online marketing, in-store promotions, or loyalty programs.
• Management Team: Highlight the qualifications and experience of your team, particularly in retail management and fashion merchandising.
• Operations Plan: Describe the daily running of the store, including inventory management, staffing, and customer service.
• Financial Plan: Provide an overview of financial aspects such as start-up costs, pricing strategy, sales targets, and profit expectations.
• Appendix: Include supplementary documents like supplier contracts, market research data, or floor plans of the store to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to shoes. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your shoe shop will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business 

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital: Venture capital investors take an ownership stake in exchange for funds, so keep in mind that you’d be sacrificing some control over your business. This is generally only available for businesses with high growth potential.
• Angel investors: Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities. 
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Since a shoe store doesn’t require massive funding, your best bet is probably to rely on your personal assets along with friends and family. If you have a great concept, you might also try crowdfunding — people love shoes! 

Step 8: Apply for Shoe Store Business Licenses and Permits

Starting a shoe store business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your shoe store business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use industry-specific software, such as vend , gofrugal , and StarCode to manage your point of sale, inventory, customers, and more.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Launching a successful shoe store requires more than just quality products; it demands strategic marketing to attract and retain customers. Here are practical strategies to kickstart your shoe store business:

• Influencer Collaborations: Leverage the power of social media influencers to showcase your shoe collection. Partner with influencers whose style aligns with your brand, reaching a broader audience and creating buzz around your store.
• Limited-Time Promotions: Generate excitement and urgency by running limited-time promotions, such as “Buy One, Get One Half-Off” or exclusive discounts for the first 50 customers. This strategy encourages quick decisions and repeat visits.
• Footwear Customization Events: Organize events where customers can customize their shoes with unique designs, colors, or accessories. This hands-on experience not only adds a personal touch but also creates memorable moments and builds brand loyalty.
• Local Sponsorships: Sponsor local events, sports teams, or community activities. This not only enhances your store’s visibility within the community but also establishes a positive association with your brand.
• Loyalty Programs: Implement a loyalty program that rewards customers for repeat purchases. Offer discounts, exclusive access to new arrivals, or special events for loyal customers to encourage them to keep coming back.
• Interactive Store Displays: Create engaging and interactive displays in your store that allow customers to try on and experience your shoes in a unique way. This not only attracts attention but also encourages customers to spend more time in your store.
• Strategic Partnerships: Collaborate with complementary businesses, such as clothing boutiques or fitness studios, to cross-promote products. This expands your reach to new customer segments and creates mutually beneficial relationships.
• Themed Pop-Up Shops: Organize themed pop-up shops or mobile shoe displays at strategic locations, capitalizing on trends and events. This creates a sense of exclusivity and urgency, driving foot traffic to your store.
• Customer Testimonials and Reviews: Showcase positive customer testimonials and reviews prominently in your store and on social media. Authentic feedback builds trust and credibility, influencing potential customers to make a purchase.
• Seasonal Trend Guides: Regularly publish seasonal trend guides on your social media platforms and in-store, showcasing how your shoes align with current fashion trends. This positions your store as a trendsetter and a go-to destination for stylish footwear.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your shoes meet their desires. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your shoe business could be: 

• The best boots you’ll ever buy
• Vintage sneakers at incredible prices! 
• Walk tall in our vast selection of heels 

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a shoe store, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in shoes for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in shoes. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business. 

Step 12: Build your team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a shoe store business would include:

• Sales Clerks — service customers, either online or in-store
• Marketing Lead — SEO strategy, social media, etc. 
• General Manager — hiring and scheduling, maintain books

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Shoe Store – Start Making Money!

You’re now ready to begin your entrepreneurial journey and lead your shoe store business to great success! Thought you might want to bookmark this page, just in case. 

And to ensure your business starts off on the right foot, here are some tips to keep in mind:

• Meet your deadlines: Whether it’s the deadline for a printing project or your bills, make sure you meet your time commitments—your creditors, service providers and customers will appreciate it!
• Provide more value than you take: Ensure your clients get more value from you than you take from them, and they’ll stick with you for life.
• Always implement quality control: A simple quality assurance check reduces product returns and customer dissatisfaction.
• Engage the local community: You know the local community and have a direct connection with them, so it’s better to serve their needs before you market your products on a state or national level.
• Address complaints with humility: Always listen to your clients, especially their negative remarks as these are areas where you can improve. And even if a complaint is illogical or unfair, address it calmly and professionally.
• Keep improving your production capacity: You never know when a big client will come calling. Be prepared for rapid expansion and you’ll be able to seize the opportunity when the time comes.
• Attend events: Participate in major shoe industry events and trade shows. Bring your bestselling shoe designs and prove yourself as creative and capable.
• Shoe Business FAQs

Shoemaking can be a highly profitable business. The average gross profit in the industry is shy of 50%. However, you may want to outsource the shoe production to a specialized company in the initial period to reduce unnecessary stress of your business which might impact your revenues and profitability.

You can start a shoe store without investing any money. You may align with an existing shoe store and put up their stock on marketplaces and social media. Generate the demand and supply products with your own packaging. Reinvest your profits until your business starts operating independently.

Shoe designers use popular designing software such as Adobe Photoshop and Adobe Illustrator. These are versatile, hence learning them will broaden your designing capabilities.

To attract customers to your shoe store, focus on creating visually appealing displays, offer a variety of high-quality shoe options, provide excellent customer service, utilize effective marketing strategies, and consider implementing loyalty programs.

Starting a shoe business online can be profitable, as it allows for a wider reach and lower operating costs compared to a brick-and-mortar store.

The age group that buys the most shoes can vary, but typically adults aged 25-44 are considered a significant consumer group for footwear.

To be successful in the shoe business, emphasize providing high-quality products, staying updated with fashion trends, offering competitive pricing, delivering exceptional customer service, building strong supplier relationships, effectively managing inventory, implementing strategic marketing efforts, and continuously monitoring and adapting to market demands.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• Decide if the Business is Right for You
• Hone Your Idea
• Brainstorm a Shoe Store Name
• Create a Shoe Store Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business 
• Apply for Shoe Store Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build your team
• Run a Shoe Store - Start Making Money!

Subscribe to Our Newsletter

Featured resources.

16 Profitable Retail Business Ideas

Carolyn Young

Published on December 1, 2022

The world of retail is huge, and lucrative opportunities are many. Retail offers endless areas for a budding entrepreneur to explore ideas for newbu ...

9 Best Trading Business Ideas

Esther Strauss

Published on August 12, 2022

Are you a born trader? If so, you’ve come to the right place. Countless businesses involve trade, from import-export to stock trading, from online ...

15 Fashion Business Ideas

Natalie Fell

Published on June 8, 2022

From the runway to your closet, fashion is everywhere. Clothing is a necessary part of life, and it also allows people to express themselves andshow ...

No thanks, I don't want to stay up to date on industry trends and news.

Item added to your cart

Here's how you establish a profitable shoe store.

Launching a shoe store is an exciting venture for anyone with a flair for fashion and a love for footwear. It's a chance to step into the world of retail with a product that speaks to style and practicality.

Whether you're a seasoned entrepreneur with a keen eye for trends or a novice ready to embark on a new business journey, establishing a shoe store requires strategic planning and commitment.

In this blog post, we'll walk you through the key steps of opening a shoe store, from the initial design to the ribbon-cutting ceremony.

How you should prepare to establish a shoe store

Market research and concept, choose a concept.

Choosing a concept is one of the first steps in opening a shoe store because it will define the range of products you offer, the store's aesthetic, and the target customer base.

This decision will influence your location choice, store layout, inventory selection, pricing, and marketing approach. A well-defined concept can help your shoe store stand out in a competitive market and draw in the right clientele.

Essentially, selecting a concept is like deciding on the theme of your story before you start creating the characters and setting the scenes.

To assist you in making this crucial decision, we have compiled a summary of the most popular concepts for a shoe store in the table below.

Pick an audience

When opening a shoe store, it's crucial to tailor your offerings to the specific customer segments you aim to attract.

For instance, if you're targeting athletes and fitness enthusiasts, you'll want to stock a variety of performance and sports-specific shoes. Your store might be located near gyms or sports facilities, and you could offer services like gait analysis to help customers find the perfect fit for their activities.

Conversely, if your ideal customers are fashion-forward individuals, you would focus on trendy and designer footwear. The store's design would be chic and stylish, situated in a high-traffic shopping district or an area known for fashion boutiques.

Understanding your target audience is essential because it shapes every aspect of your shoe store, from the inventory and store layout to the marketing strategies and location. It's similar to selecting a present; you consider the recipient's tastes before choosing the gift to ensure they'll appreciate it.

Moreover, knowing your audience enables you to communicate with them more effectively. If you're aware of who you're trying to reach, you can craft marketing messages that resonate with them and choose the right channels to advertise your shoe store.

In our business plan for a shoe store , we've identified various customer segments that could be pertinent to your venture.

To help you envision the potential customer base for your shoe store, we've compiled a summary of typical segments below.

Get familiar with the industry trends

When launching a shoe store, it's crucial to stay informed about the emerging trends in the footwear industry and integrate them into your store's offerings.

Trends are a window into what consumers are currently interested in. By aligning with these trends, you can draw in a diverse clientele who are excited to explore the newest products. Additionally, featuring trending items can distinguish your shoe store from competitors who may be more traditional in their selections.

Actually, we revise our business plan for a shoe store biannually to include the latest emerging trends. We're confident this will aid you in establishing a more prosperous shoe store.

For instance, there's a surge in demand for sustainable and ethically produced footwear, as consumers become more environmentally conscious. Stores that offer shoes made from recycled materials or produced through fair trade practices are appealing to this growing market segment.

Moreover, we've observed that customers are increasingly seeking personalized experiences, such as custom-designed shoes or fittings for optimal comfort and style.

As in many sectors, the integration of technology is also a key trend, with smart shoes that track fitness data or offer enhanced comfort through advanced materials and design.

In the era of social media, shoes that are not only comfortable and functional but also highly photogenic can significantly increase your store's online presence.

We have compiled more trends in the table below.

However, there are also some declining trends.

As consumers become more eco-conscious, there's a decline in the popularity of shoes made with non-sustainable materials or through unethical labor practices.

Additionally, while classic shoe styles remain popular, generic, mass-produced footwear is less appealing compared to unique, artisanal, or customizable options.

Finally, with increasing environmental awareness, the excessive use of non-recyclable packaging and single-use plastics in shoe packaging is becoming less acceptable.

Choosing the right location

Selecting the right location for your shoe store is essential for its success, and it requires careful consideration of several factors.

Begin by analyzing the local demographics. Understanding the age, gender, income levels, and fashion preferences of the community can help you stock the right styles and price points. A neighborhood with a high concentration of young adults might appreciate trendy and athletic footwear, while an area with an older demographic may require more comfortable, orthopedic options.

Visibility and accessibility are key. A storefront that's easily noticeable and reachable by pedestrians, drivers, or public transit users can significantly increase the number of impulse buys. Prime spots include those near bustling street corners or transit stations.

Accessibility also entails having ample parking or being a short stroll from where your target customers reside or work.

Competition can be beneficial to a certain extent. You may not want to open next to another shoe store, but being in a shopping district with other non-competing fashion retailers can attract shoppers who are already looking to make fashion purchases.

Identifying a niche in the market can provide a competitive advantage. Being close to clothing stores that don't sell shoes could also drive customers to your store for one-stop shopping convenience.

Rent costs are a major factor. While locations with high foot traffic often have higher rents, you need to weigh the potential for increased sales against the lease expenses. The rent should be manageable based on your sales projections. In some cases, a less visible location with significantly lower rent may yield a better profit margin.

Negotiating favorable lease terms can greatly affect your shoe store's financial well-being. This could include securing a lease with renewal options, negotiating limits on rent hikes, or getting a reduced rent period initially to offset setup costs.

Look into the growth prospects of the neighborhood.

Is the area developing, with new residential or commercial projects that could bring additional foot traffic to your store? Having the option to expand your premises in the future without relocating can be a huge advantage as your business expands.

Don't underestimate the importance of parking and public transportation. A location that's convenient for customers to visit is more likely to attract repeat business.

Employing market research and demographic analysis tools can offer valuable insights into the most suitable areas to open your shoe store. These tools can pinpoint neighborhoods with the ideal customer base for your merchandise.

The choice between a bustling city center and a quieter residential area hinges on your target market and business model. City centers promise high foot traffic but also come with steeper rents and increased competition. Residential areas might offer a loyal customer base and potentially lower rents but might require additional marketing to become a go-to destination.

Being situated near landmarks, community centers, schools, or office complexes can ensure a steady stream of potential customers, especially if your shoe store offers products that meet the everyday needs of these populations.

It's also important to understand local zoning laws, retail regulations, and other legal requirements to confirm that your chosen location is suitable for a shoe store. Adhering to these regulations from the outset can prevent costly and time-consuming issues later on.

Lastly, consider the long-term viability of the location. Look into upcoming developments in the area that could impact your business, either by drawing in more customers or by increasing competition or rental costs.

Startup budget and expenses

Calculate how much you need to start.

On average, the initial capital needed to open a shoe store can vary significantly, ranging from about $30,000 to $100,000 for a modest boutique to $150,000 to $300,000 for a more upscale or well-located store with a large inventory .

If you're looking to determine the precise budget required for your own shoe store and want a comprehensive breakdown of expenses, you can utilize the financial plan we have developed, specifically for shoe stores . This excel file is designed to be intuitive and will provide you with an immediate and detailed analysis of your prospective venture.

The budget can fluctuate greatly depending on the store's location. Prime retail spaces in high-footfall areas typically command higher rents, which can substantially increase startup costs.

The size of the shoe store is also a key factor in the initial investment. A larger storefront not only means higher rent but also necessitates a bigger inventory, more staff, and greater operational expenses.

The quality and variety of the inventory are other important considerations. Stocking a wide range of high-quality, designer shoes can be costly, but it may attract a more affluent customer base. On the other hand, starting with a more focused or less expensive inventory can lower initial outlay but might limit potential revenue.

Even with a tight budget, opening a shoe store is achievable with careful planning and smart decision-making. The absolute minimum budget might be in the range of $20,000 to $40,000 if you opt for a less expensive location, limit the size of your store, start with a smaller inventory, and handle many of the business operations yourself. This method demands a proactive approach, concentrating on a specific market segment to minimize costs and complexity.

To maximize a limited budget, consider the following tips.

Identify all your expenses

The expenses when starting a shoe store include inventory purchases, leasing or buying a retail space, licensing and permits, insurance, marketing and advertising, technology and software, staff training, interior design and store setup, and a reserve for unexpected expenses.

Initial inventory for a shoe store includes a diverse selection of shoes, possibly including various brands, styles, and sizes. The cost for initial inventory can range from $20,000 to $100,000, depending on the brands and quantity of stock you plan to carry. you should have a well-curated selection to attract a wide customer base.

Leasing or buying a retail space is a significant expense. Monthly rent for a retail space can range from $1,500 to $15,000, depending on the location and size of the property. Purchasing property would involve a larger upfront cost but could save money in the long term.

Licenses and permits are necessary for legal operation and can include a business license, seller's permit, and possibly a sign permit for your storefront. Costs can vary by location but typically range from a few hundred to a few thousand dollars.

Insurance is essential to protect your business against liability, property damage, and other potential risks. Essential policies include general liability, property insurance, and workers' compensation if you have employees. Annual premiums can range from $2,500 to $10,000 or more, depending on your coverage levels and store size.

Marketing and advertising are crucial for building brand awareness and attracting customers. Initially, you might spend between $2,000 to $10,000 on marketing efforts, including social media advertising, traditional advertising, and creating a website. The amount can vary based on your strategy and the competitiveness of your market.

Investing in technology and software for point-of-sale systems, inventory management, and accounting software is important. Costs can range from $1,500 to $15,000, depending on the sophistication of the systems you choose. Subscription-based services may have ongoing monthly fees.

Staff training is important to ensure excellent customer service and product knowledge. Setting aside $1,000 to $5,000 for initial training and ongoing professional development can help maintain high standards.

Interior design and store setup, including shelving, display racks, seating, and decor, can significantly impact the customer experience. This can cost between $10,000 to $50,000, depending on the quality and extent of the design.

Finally, setting aside a reserve for unexpected expenses or emergencies is crucial. A good rule of thumb is to have at least three to six months' worth of operating expenses saved. This can cover unforeseen repairs, slow seasons, or shortfalls in cash flow.

Here is a summary table to make it easier to digest. For a full breakdown of expenses, please check our financial plan for shoe stores .

Business plan and financing

Make a solid business plan.

You have probably heard it already but, yes writing a business plan when opening a shoe store is crucial.

Why? Because a business plan serves as a roadmap for your venture, detailing your objectives, strategies to achieve them, and the obstacles you might encounter. A well-thought-out business plan not only keeps you organized and on track but is also vital if you're seeking funding from investors or banks, as it shows the feasibility and potential profitability of your shoe store.

The key elements of a shoe store business plan include market analysis, financial planning, and operational strategy, among others. Market analysis helps you understand your target market, their buying habits, and the competitive environment. It involves researching current trends in the footwear industry, identifying your primary competitors, and pinpointing a niche or unique value proposition that sets your shoe store apart.

Financial planning is another crucial component. This section should detail your expected revenue, cost of goods sold (including inventory and supplier costs), labor costs, and other operational expenses. It should also feature projections for profit and loss, cash flow, and a break-even analysis. Financial planning provides you and potential financiers with a transparent view of your shoe store's fiscal health and growth prospects. You will find all of this in our financial plan for a shoe store .

While the structure of a shoe store business plan shares similarities with those of other retail businesses, the focus on certain elements can vary.

For instance, a shoe store will emphasize product assortment (offering a wide range of styles and sizes), supply chain management (securing reliable suppliers and managing inventory effectively), and location analysis (choosing a spot with high visibility and foot traffic). Additionally, demonstrating an understanding of retail trends and customer service excellence is crucial.

To succeed and create a persuasive shoe store business plan, it’s important to conduct in-depth research and be realistic about your financial estimates and capabilities. Engage with potential customers to grasp their needs, preferences, and spending habits. Also, consider the scalability of your business model and how you might grow or diversify your product lines in the future.

In the case of a shoe store, particular attention should be given to establishing a strong brand identity and marketing strategy that appeals to your target demographic. Emphasizing the quality of your footwear, the variety of your selection, or the shopping experience you provide can set your store apart in a competitive market.

Success depends not only on the quality and variety of the shoes you sell but also on meticulous planning, understanding your market, managing finances prudently, and executing your operational strategy with precision.

Remember, a business plan is not a static document but a dynamic one that should be revisited and revised as your shoe store grows and adapts to changes in the market.

Get financed

Don't have the capital to launch your shoe store on your own? Don't fret, there are numerous financing avenues available.

Financing can be sourced from various channels: attracting investors, securing loans from banks or financial institutions, and seeking out grants or subsidies.

Each financing method comes with its own set of benefits and things to consider.

Attracting investors means you'll be raising capital from individuals or entities that will, in return for their investment, typically receive a share in your shoe store. This is advantageous because it doesn't necessitate repayment like a traditional loan does.

However, this also implies relinquishing some degree of ownership and possibly some control over the strategic direction of your store.

For a shoe store, this could be a strategic move if you're looking to scale quickly or require substantial initial capital for inventory, a well-situated storefront, or a robust marketing campaign. To persuade investors, you'll need a robust business plan that shows growth potential, profitability, and a deep understanding of the retail footwear market.

Securing a business loan is another common financing strategy.

This option involves repayment with interest but allows you to maintain complete ownership of your store. Loans can be utilized for a variety of purposes, such as stocking up on inventory, covering initial operational costs, or fitting out your retail space.

Banks usually ask for a down payment or collateral; this amount can vary but is often between 15% to 25% of the loan's value. It's crucial to carefully consider the proportion of your total budget that comes from loans to avoid saddling your business with excessive debt. Ideally, your shoe store's projected cash flow should easily cover loan repayments while still allowing for operational costs and business growth.

Grants or subsidies are less common but can be a valuable resource.

These funds are typically provided by government bodies or non-profit organizations to support small businesses, particularly in areas that are economically disadvantaged or in niche markets. Grants do not require repayment but are often tied to specific requirements and are highly competitive.

For a shoe store, grants may not be the most reliable primary source of funding but can be an excellent way to supplement other financing for particular initiatives or needs.

To effectively secure financing from lenders or investors for your shoe store, it's essential to prove the viability and profitability of your business concept.

This means crafting a comprehensive business plan that includes market analysis, a clear identification of your target market, detailed financial forecasts, and an effective marketing strategy. Your business plan should emphasize what makes your shoe store unique, such as exclusive brands, a strong brand identity, or an exceptional customer service approach.

Lenders and investors will judge your shoe store based on several factors, including your creditworthiness, business acumen, collateral, and the strength of your business plan.

They will scrutinize the financial projections of your shoe store to determine if you can generate sufficient revenue to cover operating costs, repay debts, and still turn a profit. Demonstrating a comprehensive understanding of the shoe retail market, including trends, consumer preferences, and competitive analysis, will also bolster your case.

Below is a summary table of the various financing options mentioned for opening a shoe store, along with their advantages, considerations, and potential uses:

Legal and administrative setup

Permits and licenses.

Opening and operating a shoe store involves meticulous planning and compliance with various regulations and requirements to ensure customer satisfaction and to safeguard your business.

The specific permits, licenses, and insurance policies you'll need can differ based on your location, but there are common standards that are applicable in many areas.

Firstly, you'll need to secure the necessary business permits and licenses.

This generally includes obtaining a business license from your city or county, and a sales tax permit if your state imposes sales tax. Depending on the nature of your shoe store, if you plan to offer custom fitting services or shoe repair, additional permits may be necessary.

you should consult with your local government to understand the precise requirements for your region.

While health department regulations are not as stringent for shoe stores as they are for food-based businesses, you must still comply with general retail regulations. This includes maintaining a clean and safe environment for customers and employees, adhering to building codes, and ensuring that any products you sell meet consumer safety standards.

Inspections might not be as frequent as in food service businesses, but local authorities may conduct them to ensure compliance with retail and consumer protection laws. The frequency of these inspections can vary, but they are often triggered by customer complaints or as part of routine checks.

Non-compliance with regulations can lead to penalties such as fines or, in extreme cases, the closure of your store until issues are resolved. Therefore, it's crucial to stay informed and compliant with all local laws and regulations.

Insurance is a vital component of protecting your shoe store business. At the very least, you'll need general liability insurance to cover any accidents or injuries that might occur on your premises.

Property insurance is also essential to safeguard your store's inventory, fixtures, and fittings from damage or theft. If you employ staff, workers' compensation insurance is typically mandatory by law to cover any work-related injuries or illnesses.

Furthermore, considering product liability insurance is advisable, as it can protect your business in the event that the products you sell cause harm to customers.

Lastly, if you operate an online store component, you may also need to look into cyber liability insurance to protect against data breaches and other online risks.

By understanding and adhering to these requirements, you can create a solid foundation for your shoe store and focus on providing excellent products and services to your customers.

Business Structure

The three common structures for opening a shoe store are LLC (Limited Liability Company), partnership, and sole proprietorship. Each has their unique features and implications for your business.

Please note that we are not legal experts (we specialize in business and financial planning) and that your choice should be based on how much risk you're willing to accept, how you prefer to handle taxes, and your plans for growing and possibly selling your shoe store.

In simple terms, a sole proprietorship is simple and straightforward but carries personal liability. A partnership allows for shared responsibility but requires clear agreements to manage risks. An LLC offers a balance of protection and flexibility, making it a strong option for many businesses looking to scale.

Consider your long-term goals, and consult with a financial advisor or attorney to make the best choice for your shoe store.

We’ll make it easier for you, here is a summary table.

Getting started to establish a shoe store

Offer development, design and lay out.

Designing and laying out your shoe store for operational efficiency and an enhanced customer experience requires careful planning and strategic thinking.

Let's dive into how you can achieve this, focusing on customer flow, balancing product display with budget, and ensuring safety and comfort.

Firstly, envisioning customer flow is paramount.

Your shoe store's design should guide customers naturally from the entrance to the latest collections, past the various shoe displays, to the fitting area, and finally to the payment counter. This flow should be intuitive, reducing bottlenecks and ensuring a smooth transition from one point to the next. Place your newest and most popular styles at the front to immediately catch customers' attention.

This setup not only showcases your best products but also entices customers to explore further and potentially make additional purchases as they follow the designated path.

Regarding the design to facilitate this flow, consider the layout's openness and accessibility.

Wide aisles, clear signage, and a logical arrangement of the space encourage easy movement and comfort. The fitting area should be clearly marked and separate from the main walkways to avoid confusion and congestion. If your store offers accessories or shoe care products, ensure they are displayed near the payment counter as last-minute add-ons for customers.

Balancing the need for high-quality display fixtures with budget constraints is a challenge many face.

Start by prioritizing essential display units that directly impact the presentation of your shoes, such as well-lit shelves and attractive racks. These are worth investing in because they are the backbone of your store's visual appeal. For other items, consider buying gently used or refurbished fixtures from reputable suppliers to save money without significantly compromising the presentation.

Additionally, plan for display units that offer versatility and efficiency, like modular shelving or rotating displays, to get the most value for your investment.

Safety and comfort in the shoe store layout are non-negotiable. Your design must incorporate zones designated for different purposes to prevent clutter and accidents. For example, separate areas for new arrivals, casual wear, sports shoes, and formal collections ensure that each section is distinct and easy to navigate. Install seating at key points, especially near the fitting area, to encourage comfort and ease during shoe trials.

Specific protocols for merchandise handling, storage, and display are crucial for maintaining an orderly environment. Implement a system that ensures all shoes are stored in an organized manner, with display models kept clean and in good condition.

Train your staff thoroughly in product knowledge and customer service, emphasizing the importance of maintaining a tidy store, offering assistance when needed, and managing inventory effectively.

Regularly review and update these protocols to comply with local safety regulations and best practices.

Craft your offer

Your inventory and the styles you offer will be the reason why your shoe store is successful (or why it is failing).

To start, identify the preferences and needs of your target market through direct engagement, such as surveys and social media interactions, and indirect research, like observing trends in your area and reviewing what successful competitors are doing.

Once you have a clear picture of your target market's preferences, you can begin to curate a selection of footwear that not only appeals to their tastes but also stands out.

Incorporating local and seasonal trends into your shoe store's inventory is a fantastic way to enhance appeal and relevance.

This approach not only supports local designers and reduces your carbon footprint but also ensures that your offerings are fresh and on-trend. Make connections with local shoe designers to understand what styles will be available throughout the year. This knowledge allows you to plan your inventory seasonally, offering special items that can attract customers looking for the latest trends. Seasonal collections also create anticipation among your customers, as they look forward to the release of new designs.

To ensure your shoe store stands out in a competitive market, focus on uniqueness and quality.

This can be achieved by offering exclusive items that are hard to find elsewhere, such as shoes from up-and-coming designers, limited edition releases, or catering to specific needs like orthopedic or eco-friendly options. Telling the story behind your products, such as the craftsmanship involved or the inspiration behind a design, can also add a unique appeal.

Ensuring consistency and quality in your footwear involves establishing rigorous standards and processes.

This can include detailed product descriptions with precise materials and care instructions, thorough training for your sales staff, and regular quality checks. Consistency is key to building trust with your customers, as they will know exactly what to expect each time they visit your shoe store. Invest in high-quality products and partner with reputable manufacturers, and don’t shy away from refining your selection until you're confident it meets your standards.

Also, utilizing customer feedback is essential for continuous improvement and refinement of your shoe store's offerings. Create channels for feedback, such as comment cards, online surveys, and social media engagement, to understand what your customers love and where there might be room for improvement.

Be open to constructive criticism and willing to make changes based on customer input. This not only helps in refining your inventory but also shows your customers that you value their opinions, fostering loyalty and repeat business.

Determinate the right pricing

When opening a shoe store, it's crucial to establish a pricing strategy that balances profitability with customer appeal. Here's a methodical approach to setting your prices effectively.

Firstly, you must understand your costs thoroughly, which include the purchase price of the shoes from manufacturers or distributors, employee wages, store rent, utilities, marketing, and other operational expenses.

Ensuring your prices cover these costs is vital for your business's financial health.

Next, analyze your competition and the general market to gauge the going rates for similar footwear. This doesn't mean you should simply mimic these prices, but it provides a reference point.

Knowing how price-sensitive your target customers are and what they value in footwear is key. Gather this information through customer interactions, surveys, or by experimenting with different price points and observing the effect on sales. This will help you find the sweet spot where customers feel they're getting good value without feeling overpriced.

Psychological pricing strategies can also be effective in a shoe store.

Charm pricing, such as $49.99 instead of $50, can make a product seem less expensive, though the difference is slight. This tactic can work well for more affordable shoe ranges or accessories.

However, you should apply this strategy carefully to maintain the perceived quality of your offerings.

The perceived value is also crucial in the footwear industry.

Enhancing this perception can be achieved through high-quality products, excellent customer service, and an inviting store design. These elements can justify higher prices because customers believe they are receiving more value for their money.

Implementing seasonal or time-based pricing strategies can stimulate sales during slower periods or for seasonal merchandise.

For example, promoting discounts on sandals at the end of summer or introducing higher-priced exclusive winter boots can leverage seasonal demand.

When introducing new shoe lines, consider using introductory pricing, such as special first-month prices or bundle deals, to entice customers to try them. Once these products gain popularity, you can adjust the prices based on demand and cost factors.

For online sales, consider the different costs and customer expectations compared to in-store sales. Online prices may need to include shipping costs, which you could either incorporate into the product price or charge separately. Online-exclusive promotions or bundles can also drive sales in this channel.

Finally, be cautious with discounting strategies. While they can increase sales and attract bargain hunters, too much discounting can harm your brand's image and lead to an expectation of constant sales. Use discounts strategically, perhaps to clear out last season's stock, without making them a habitual event for your customers.

Manage relationships with your suppliers

Poor relationships with suppliers could significantly hinder your shoe store's success

Conversely, nurturing strong partnerships with shoe manufacturers and material suppliers is crucial for ensuring a consistent supply of quality footwear.

Engage in regular communication, make payments on time, and show appreciation for their craftsmanship and service. Transparency about your store's needs and expectations is key, and if possible, visit their manufacturing sites. Understanding their production capabilities and constraints will help you collaborate more effectively.

Consider negotiating long-term contracts with key suppliers to lock in favorable prices and secure a steady supply of popular styles. However, it's also wise to cultivate a network of alternative suppliers to protect against potential disruptions.

For inventory management, strategies such as First-In, First-Out (FIFO) are crucial. This method ensures that older stock is sold before newer shipments, reducing the risk of unsellable outdated styles. Monitor inventory levels closely to align orders with consumer demand, preventing overstock and markdowns. A just-in-time (JIT) inventory system can also be beneficial, where products are ordered and received in alignment with sales needs, though this requires accurate sales forecasting.

Technology can greatly enhance inventory control and minimize overstock in a shoe store.

Implementing an inventory management system that integrates with your point-of-sale (POS) system allows for real-time tracking of stock levels and sales data. This can lead to more precise demand predictions, streamlined restocking procedures, and insights into trends that can guide product selection and promotions.

Furthermore, digital tools can improve communication with suppliers, making it easier to adjust orders quickly and collaborate on future product lines.

As your shoe store grows, challenges such as maintaining consistent quality, managing higher volumes, and controlling costs will arise. Tackle these by standardizing product specifications, training staff effectively, and investing in technology that enhances operational efficiency without sacrificing the quality of your footwear.

Expansion means ordering more products, so negotiate with suppliers for bulk discounts without compromising on the quality of the shoes. Quality control is even more important as your inventory grows, necessitating strict adherence to product standards and more frequent inspections.

Effective cost control measures require a close examination of every aspect of sourcing and stocking your shoe inventory. Regularly reassess and negotiate with suppliers to ensure you're receiving the best value for money without sacrificing quality.

Also, explore alternative materials or products that may offer cost savings or take advantage of seasonal pricing. Use technology to track and analyze expenses, waste, and inventory levels to pinpoint opportunities for improvement. Reducing excess stock not only lowers costs but also supports sustainable practices, which can attract eco-conscious customers.

Hire the right people

When opening a shoe store, you should consider the staffing needs carefully. You may not need to hire a full team right away, especially if you're working with a limited budget.

At the core, your shoe store will require a team that can handle sales, inventory management, and overall store operations.

For sales, knowledgeable and friendly sales associates are key. They should have a good understanding of the products, be able to assist customers with fitting and selection, and provide excellent customer service. A store manager is also essential to oversee the daily operations, manage staff, and ensure the store runs smoothly.

Behind the scenes, you might need a stockroom associate to manage inventory, receive shipments, and keep the stock organized. While not immediately necessary, roles such as a visual merchandiser to create attractive displays, a marketing specialist to handle promotions, and additional administrative staff can be added as your business grows.

Outsourcing certain tasks, such as accounting, marketing, or even online order fulfillment, can be a strategic way to manage your resources effectively while focusing on your core business.

When hiring, prioritize candidates who have a passion for fashion and customer service. For sales associates, look for experience in retail, strong communication skills, and a friendly demeanor. For managerial roles, seek out individuals with retail management experience, a solid understanding of business operations, and leadership capabilities.

To ensure a good fit with your shoe store's culture and demands, consider practical assessments during the hiring process, such as role-playing customer interactions or assessing product knowledge.

Look for candidates who show a genuine interest in fashion and footwear, as well as the adaptability required in the dynamic retail environment.

Finding the right candidates can be a challenge. Utilize job boards, social media platforms, and local community networks to reach potential hires. Attending job fairs and partnering with fashion schools for internships can also be effective strategies.

Here is a summary table of the different job positions for your shoe store, and the average gross salary in USD.

Running the operations of your shoe store

Daily operations.

Running a shoe store efficiently is key to success in the competitive retail landscape. By adopting smart strategies, you can ensure smooth operations and a great shopping experience for your customers.

Firstly, a Point of Sale (POS) system tailored for shoe retail can be a game-changer. Look for a POS that combines sales, inventory, and customer relationship management. This will enable you to monitor sales as they happen, manage your stock levels effectively, and maintain a record of customer preferences and buying patterns.

Many advanced POS systems also support online sales, which can broaden your market reach and accommodate customers who prefer shopping from the comfort of their homes.

Effective inventory management is crucial in a shoe store. You'll want software that can track your inventory in real-time. The best systems send alerts when stock is low and provide analytics on inventory movement, helping you make smart restocking decisions. This is vital for reducing overstock and ensuring you have the right sizes and styles available based on past sales data and trend predictions.

Certain inventory systems also include features like serial number tracking, which is important for authenticating products and handling returns or exchanges.

As highlighted earlier in this article, maintaining good supplier relationships is essential for a shoe store's success.

Establish clear communication and set early expectations about delivery times, product quality, and payment terms. A strong relationship can lead to better terms and dependability. It's also prudent to have alternative suppliers to guarantee that you can always fulfill your inventory requirements.

Keeping your staff motivated and productive involves creating a positive workplace and promoting a culture of recognition and development.

Regular training, clear communication of objectives and expectations, and positive feedback are key. Acknowledging and rewarding dedication and achievements can also help maintain high morale. Make sure that work schedules are fair and consider your employees' need for work-life balance.

Ensuring a positive customer experience begins with the atmosphere of your shoe store, the quality of your products, and the service your team provides.

Train your staff to be welcoming, helpful, and efficient. Encourage them to remember repeat customers' names and preferences, which adds a personal touch to each visit.

Maintaining a clean, well-organized store with clear signage and an intuitive layout also improves the customer experience.

Effective customer service policies for a shoe store might include a satisfaction guarantee, transparent return and exchange policies, and a system for collecting and acting on customer feedback.

Make it simple for customers to give feedback, whether in-store, on your website, or through social media. Address feedback quickly and positively, showing that you value their opinions and are dedicated to enhancing their shopping experience.

Dealing with customer feedback and complaints with grace is crucial. Always listen fully to the customer's concerns before responding. Apologize when appropriate and offer a resolution or compensation, such as a refund, exchange, or discount on a future purchase.

Use negative feedback as a chance to refine your operations, products, or service. Often, turning a negative experience into a positive one can earn you a loyal customer.

Revenues and Margins

Know how much you can make.

Understanding the financial workings of a shoe store is crucial for any current or aspiring retailer in the footwear industry.

We have an in-depth article on the profitability of shoe stores that provides extensive details. Below, we'll summarize some key points.

One important metric for shoe stores is the average basket size, which indicates the average amount a customer spends per visit.

The average basket size can vary greatly depending on the type of shoe store. For high-end boutiques specializing in designer footwear, the basket size might be quite large, potentially between $150 and $300 .

Chain shoe stores, which often offer a wide selection of brands and styles at more moderate prices, might see a larger number of transactions with a smaller average basket size, perhaps $75 to $150 .

Specialty shoe stores, such as those focusing on athletic footwear or eco-friendly shoes, might also have higher basket sizes due to the specialized nature of their products, with an average between $100 and $200 .

Revenue for shoe stores also varies widely. With our financial plan tailored for shoe stores , you can estimate your revenue with precision.

Urban shoe stores may experience monthly revenues ranging from $10,000 to over $200,000 , leading to annual revenues between $120,000 and $2.4 million .

Rural shoe stores, with a smaller customer base, might expect more modest revenues, often between $50,000 and $300,000 annually .

Newly opened shoe stores may have lower initial revenues as they work to establish a customer base and brand presence, often not exceeding $8,000 per month in the beginning.

Established shoe stores, on the other hand, can leverage repeat business and referrals to achieve higher and more consistent revenues.

High-end boutiques may have a more limited customer base due to the niche market, with annual revenues often not exceeding $1 million .

Chain shoe stores, with their brand recognition and marketing, often see higher revenues, sometimes between $250,000 and $1 million annually .

Specialty shoe stores' revenues heavily depend on the demand for their unique products, making it challenging to provide an average range.

Shoe stores don't just earn money from selling footwear. They have various revenue streams to tap into.

If you need inspiration, here's a table that outlines the many ways a shoe store can generate income.

Understand your margins

You're likely aware that revenue doesn't equate to profit. For a shoe store, it's crucial to consider both expenses and margins to determine the actual earnings at the end of the year.

Let's delve into gross and net margins, which are key indicators of a shoe store's profitability.

To calculate your own margins and get a precise figure for your potential profit, you can adjust the assumptions in our financial model designed for shoe retail .

The typical range of gross margins for shoe stores can vary, often ranging from 30% to 50%.

Gross margin is calculated by subtracting the cost of goods sold (COGS), which includes the direct costs associated with acquiring the shoes sold by the store, such as wholesale prices and import duties, from the revenue generated from shoe sales. This figure is then divided by the revenue and multiplied by 100 to get a percentage.

Net margins, however, account for not just COGS but all other expenses a shoe store incurs, including rent, utilities, staff wages, marketing, and taxes. This figure is obtained by subtracting all operating expenses from the gross profit.

Net margins offer a more complete view of a shoe store's profitability and are typically lower than gross margins, with industry averages often ranging from 2% to 10%, reflecting the tighter profitability after all costs are considered.

Different types of shoe stores—luxury, discount, and specialty—can have varying profit margins due to differences in their business models, scale of operations, and target markets. Here's a table to clarify:

Margins in a shoe store are significantly influenced by factors such as product selection, pricing strategy, and scale of operations.

A diverse product selection can attract a wider customer base but may also increase inventory complexity and costs.

Pricing strategy is critical; prices must be competitive yet sufficient to cover costs and yield a profit. Scale of operations can impact cost efficiencies, with larger stores often benefiting from lower per-unit costs due to bulk purchasing.

Ongoing expenses that affect shoe store margins include inventory costs, labor, rent, and utilities. Inventory costs can be volatile based on trends and seasonality, impacting gross margins. Labor is a major expense, particularly for stores offering personalized customer service. Rent can differ greatly by location, and utilities can be significant, especially for stores with extensive lighting and climate control needs.

Shoe stores focusing on niche markets, such as vegan or athletic footwear, may experience different margin dynamics compared to those with a broader product range.

While niche stores can command higher prices, they also face higher acquisition costs and potentially limited market size, which can affect overall margins.

External factors like economic conditions, seasonal trends, and fashion trends also play a crucial role in shoe store margins. Economic downturns can lead to reduced spending on non-essential items like fashion footwear, while seasonal peaks can increase sales. Staying current with fashion trends and adapting inventory accordingly can help manage these fluctuations.

Overcoming the challenge of maintaining healthy margins amidst fluctuating inventory costs and labor expenses is significant. Shoe stores can counter these challenges through effective cost management, strategic pricing, optimizing store operations, and investing in technology for inventory and sales management.

Regular monitoring and analysis of financial performance, including gross and net margins (which you can do with our financial model tailored to shoe retail ), is essential for ensuring the financial health and sustainability of a shoe store.

Implement a strong marketing strategy

Marketing doesn't need to be as complex as some experts make it seem. We know you'll be busy running your shoe store and won't have a lot of time for promoting it. So, we'll make sure to keep things simple and effective, like the marketing strategy we have outlined in our business plan for a shoe store .

Creating a brand for your shoe store is not just relevant; it's crucial.

Your brand is how customers recognize and remember you. It's not just your logo or the colors you use, but also the feelings and experiences you provide. Your brand should reflect the quality of your footwear, your store's atmosphere, and the values you stand for, like fashion-forward thinking or commitment to comfort. This makes your shoe store stand out in a crowded market and builds a loyal customer base.

For your marketing plan, start with defining your target audience. Who are your ideal customers? What do they value? Are they looking for the latest trends, athletic performance, comfort, or affordability? Understanding your audience will guide your branding and promotional strategies.

Speaking of promotion, social media and digital marketing are powerful tools for shoe stores. Platforms like Instagram and Facebook are perfect for showcasing your products through high-quality photos and engaging content.

Share the latest footwear trends, new arrivals, and style tips, which adds a personal touch and shows the fashion expertise that goes into your curation.

Customer reviews and testimonials can build trust and encourage others to visit your store. Style guides or footwear care tips can also engage your audience, providing them with value and establishing your shoe store as a go-to source for footwear knowledge.

Content strategies that work well for shoe stores include highlighting the variety and uniqueness of your footwear, showcasing how to pair shoes with different outfits, and promoting any exclusive or limited-edition collections. Collaboration with local fashion influencers or events can also boost visibility.

However, not all techniques may be relevant for your shoe store. For example, if your target audience is local, international-level advertising might not be the best use of your budget. Likewise, if your store specializes in athletic shoes, a heavy focus on high-fashion content might not align with your brand.

On a low budget, there are several hacks you can implement to attract new customers.

First, consider leveraging local fashion shows or community events where you can showcase your products directly to consumers. This not only increases sales but also raises awareness of your store.

You can also offer in-store fittings or style consultations to get people talking about your personalized service.

Partnering with local gyms or sports clubs, especially if you sell athletic footwear, can expand your reach.

Creating a loyalty program can encourage repeat business. Simple punch cards or digital rewards programs can be very effective.

Also, don't underestimate the power of word-of-mouth marketing. Encourage your satisfied customers to spread the word by offering them incentives for referrals.

Grow and expand

We want you to be successful with your shoe store. We hope the explanations provided above will assist you in achieving that.

Now, let’s consider you’re actually successful and running a shoe store with healthy margins generating significant cash flow. Then, it’s time to think of how you can scale and expand your business.

There's always room for more success, and we're here to guide you on how to achieve it.

Also, please know that there is a 3-year development plan tailored for a shoe store in our business plan template .

First, you have to know that successful shoe store owners often share qualities such as resilience, adaptability, a deep understanding of their market, and the ability to connect with and understand their customers. These traits are crucial as they navigate the complex process of growing their business.

Before expanding a shoe store's product line, consider the existing market demand, the compatibility of new items with your current offerings, and how these additions will affect your operations.

Market research plays a vital role in this decision-making process. By analyzing customer preferences, current fashion trends, and the success of similar products in the market, you can make informed decisions that align with your shoe store's capabilities and customer expectations.

Evaluating the success of current operations involves looking at sales trends, customer feedback, and operational efficiency. If your shoe store consistently meets or exceeds sales targets, receives positive feedback, and operates efficiently, it may be time to consider expansion.

Opening additional locations should be based on solid evidence of demand, a thorough understanding of the target market, and the financial health of your current operation.

Franchising offers a way to expand with lower capital risk, leveraging the entrepreneurial spirit of franchisees.

However, it requires a strong brand, proven operational systems, and the ability to support franchisees. Opening owned branches provides more control over operations and customer experience but requires more capital and direct management. Each model has its benefits and challenges, and the choice depends on your business goals, resources, and how you prefer to grow.

Digital channels, including e-commerce and social media platforms, can significantly boost a shoe store's reach and sales. Establishing an online presence allows you to cater to customers beyond your immediate geographic location, adapting to the increasing demand for convenience and online shopping.

This strategy requires an understanding of digital marketing, logistics for shipping, and maintaining product quality during transit.

Branding is crucial as it differentiates your shoe store in a competitive market. A strong, consistent brand identity across all locations and platforms can enhance customer loyalty and attract new business. Strengthen your brand by ensuring that every customer touchpoint reflects your shoe store's values, aesthetic, and quality.

Maintaining consistency across multiple locations is challenging but essential. This can be achieved through detailed operational manuals, training programs, and quality control systems.

Regular visits and audits, along with fostering a strong, shared culture, help ensure each location upholds the standards that contributed to your original site's success.

Financial metrics and business benchmarks indicating readiness for expansion include consistent profitability, a strong cash flow, and meeting or exceeding sales projections over a significant period.

Additionally, having a scalable business model and the operational capacity to support growth is crucial.

Partnerships with fashion designers and participation in fashion events can introduce your shoe store to new customers and markets. These opportunities allow for creative collaboration, community engagement, and brand visibility, contributing to your shoe store's growth.

Scaling inventory to meet increased demand involves logistical considerations such as storage solutions, efficient inventory management, and possibly expanding your physical space. Ensuring that your supply chain can handle the increased volume without sacrificing quality is key.

Finally, it's essential that your expansion efforts stay true to your shoe store's core values and long-term goals. Growth should not come at the expense of what made your shoe store successful in the first place.

Regularly revisiting your business plan and values can help ensure that your expansion strategies align with your vision and mission, sustaining the heart of your shoe store as it grows.

• Choosing a selection results in a full page refresh.
• Opens in a new window.

Start a Shoe Store

Unleashing Your Inner Cobbler: Embarking on a Shoe Store Adventure!

RELATED BUSINESS IDEAS

Discover your perfect domain, shoe store mini business plan, business analysis for a shoe store, expected percent margins, expected earnings, actions to achieve desired numbers, inventory management, marketing & customer acquisition, sales & customer experience, cost control, business operations, not what you had in mind here are more ideas, grab your business website name, step 1: determine if starting a shoe store is right for you, breakdown of startup expenses, breakdown of ongoing expenses, examples of ways to make money, step 2: name the business, advantages of naming the business, step 3: create a business plan, tips for writing a business plan, step 4: obtain licenses and permits, obtaining licenses and permits, step 5: find a location, considerations for leasing or buying, research local regulations, consider the layout, step 6: purchase supplies and equipment, where to purchase supplies and equipment, cost of supplies and equipment, financing options, step 7: market the business, step 8: hire employees, benefits of hiring employees, finding employees, training employees, step 9: open the store, final considerations, explore more categories, take the next steps.

404 Not found

Shoe shop business plan template

Download this shoe shop business plan template in PDF or Word format, or tailor it to your project directly in our business plan software.

Discover our shoe shop business plan template

Our shoe shop business plan template gives you the structure to write a professional plan.

Not accustomed to writing business plans? Our shoe shop business template will turn a typically challenging process into a total breeze.

Modelled on a complete business plan of a shoe shop in France, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.

Cast your eyes on this template to achieve a better understanding of what your bank and investors would like to see, so that you can create a business plan that meets their expectations.

7 day free trial. No credit card required. Shoe shop business plan template available with paid plans only.

How to use this shoe shop business plan template

Edit the shoe shop business plan template online, or download it.

There are 3 ways to use this template:

• Edit it online: you can adapt this template to your business idea by changing the text or the financial forecast directly in our business planning software
• Download in PDF: if you're just after a little inspiration, you can download the shoe shop business plan template in PDF to read over it
• Download in Word format: want to edit your plan on Word? Simply export the shoe shop business plan template to Ms Word (.docx) format

Shoe shop business plan template content

This template includes a complete shoe shop business plan example, with a financial forecast and the following sections:

• Executive summary: the executive summary gives the reader a clear and concise overview of your business idea
• Company: this section lays out the structure of your business, including its location, management team and legal form
• Products and services: here, you'll give an overview of the different types of high-end and locally manufactured shoes and accessories sold by your shoe shop
• Market analysis: the market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)
• Strategy: this section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way
• Operations: this step lays out the company's operational organisation, including the recruitment plan
• Financial plan: the financial plan includes a table of sources & uses (initial funding plan), and complete financial statements (P&L, balance sheet and cash flow statement).
• Appendices: this part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).

Executive summary of the shoe shop's business plan

The executive summary gives the reader a clear and concise overview of your business idea.

Our shoe shop business plan example's executive summary is formed of the following subsections:

• Business overview: in this subsection, we outline who the shoe shop founders are, what legal form they've chosen for the business, and the rationale behind the choice of their location
• Market overview: in this subsection, we summarize the conclusions of the market analysis performed by the shoe shop's owners and explain who they might target (our shoe shop business plan template targets local residents and tourists)
• Financial highlights: in this subsection, we give an overview of the forecasted financial performance of the shoe shop over the first 3 years of operation
• Our ask: in this subsection, we outline the amount of financing required to start the shoe shop and how it's going to be funded (the founders are seeking a bank loan to start their shoe shop)

Company overview included in our shoe shop business plan sample

This section lays out the structure of your business, including its location, management team and legal form.

Our shoe shop business plan template's company section is formed of the following subsections:

• Structure & Ownership: in this subsection, we outline who the shoe shop shareholders are, what legal form they've chosen for the business
• Location: in this subsection, we present the area surrounding the location chosen for the business and the layout and main features of the premises
• Management Team: in this subsection, we give an overview of the background of each of the shoe shop's founders and explain how they met and why they decided to start a company together

Products and services offered by the shoe shop

The products and services section is where you will present the different types high-end and locally manufactured of shoes and accessories sold by your shoe shop.

In our shoe shop business plan template products and services section, we cover:

• Shoes: a diverse range of women's and men's shoes for all occasions including suede brogues, sandals, loafers etc.
• Cleaning products and accessories: a range of accessories dedicated to maintenance and shoe care such as deodorizing balls, soles, laces etc.
• Sales: planned sales periods to sell off old stock and for our newsletter subscribers

Market analysis for the opening of the shoe shop

The market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)

Our shoe shop business plan example's market analysis section is formed of the following subsections:

• Demographics and Segmentation: in this subsection, we explore the market in depth. We look at the supply and demand sides both at the national and local level, analyse the hot trends perceived by the founders, and the key statistics that will help the founders build their positioning
• Target market: in this subsection, our founders explain who they view as their ideal customers (our shoe shop business plan template targets local residents and tourists) and why they chose to target them
• Competition: in this subsection, we take a look at the direct (nearby retailers selling shoes) and indirect (supermarkets, clothes boutiques, sports shop) local competition to ensure we have a differentiated positioning and that the market is large enough to accommodate the arrival of a new shoe shop
• Regulation: in this subsection, we give an overview of the main regulation applicable to our shoe shop

Setting the strategy for our shoe shop

This section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way.

Our shoe shop business plan template strategy section is formed of the following subsections:

• Pricing: in this subsection, we explain how we set the prices of our main categories of products (men's shoes, women's shoes, shoe care products and accessories) and the rationale behind our choice
• Marketing plan: in this subsection, we explain what action we'll put in place to build awareness and loyalty among shoe shop customers
• Milestones: in this subsection, we give an overview of the main goals we set for ourselves for the next 3 years
• Risks and Mittigants: in this subsection, we perform an assessment of the medium and long-term risks that could jeopardize the financial viability of our shoe shop and outline how we intend to mitigate them

Operations section of the shoe shop business plan template

This part lays out the company's operational organisation, including the recruitment plan.

Our shoe shop business plan example's operations section is formed of the following subsections:

• Personnel plan: in this subsection, we explain what our opening hours will be and explain the responsabilities of each of our shoe shop staff members
• Key assets and IP: in this subsection, we list the assets and intellectual property rights which are critical to our business operations and explain how we will secure and protect each of these
• Suppliers: in this subsection, we give an overview of the main suppliers we will use our what commercial terms have been negotiated with them

Financial plan included in our shoe shop business plan template

This section presents the expected financial performance of the shoe shop over the next 3 years.

Our shoe shop business plan example's financial plan is formed of the following subsections:

• Start-up funding: in this subsection, we list the cost of each item required to launch the shoe shop
• Important assumptions: in this subsection, we explain the methodology and the main assumptions used to build the shoe shop's financial forecast
• Sales forecast: in this subsection, we detail the expected revenues and growth rate for our shoe shop in the coming years
• Cost structure: in this subsection, we list all the expenses required for our shoe shop to operate smoothly
• Projected Profit & Loss statement: in this subsection, we analyse our forecasted P&L and comment on the expected profitability of our shoe shop over the next 3 years
• Projected cash flow statement: in this subsection, we analyse the expected cash generation of the shoe shop
• Projected balance sheet: in this section we give an analysis of the liquidity and solvability implied from our balance sheet

Appendices of the shoe shop business plan template

This part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).

Our shoe shop business plan template's appendices include:

• A Maturity profile chart showing the principal repayments of their loans over the next 3 years
• A monthly cash flow forecast: showing how much cash is being generated or consumed each month over the first 3 years of operations

Shoe shop business plan template sample

Executive summary, business overview.

Chaussure À Son Pied will be a shoe shop located in downtown Caen. We'll offer a diverse range of women and men's shoes, whilst specialising in quality leather and original brands, with a special focus on products manufactured in France.

Compiled of leather and vegan leather shoes, sneakers, boots and sandals, our collections will move with the seasons to keep up with customer demand for the latest trends.

Chaussure A Son Pied will tie together its extensive shoe collection and the expertise of its sales staff to create a space where the people of Cognac can come to discover the perfect shoe for any occasion.

Our store will be located at Rue Froide in downtown Caen, a street perpendicular to the very lively Rue Saint-Pierre, an area famed for its attractive aesthetic and wide selection of shops.

Chaussure A Son Pied will meet the high-end expectations of its customers by offering a more deluxe range of shoes than other brands on the local market.

Chaussure à son Pied will be a limited company managed by Valentine C. and Alice V. with a share capital of €15,000. Valentine and Alice both have the requisite skills and experience for launching a shoe shop business.

Valentine holds a Bachelor's degree in Business Management from the University of Nancy and has 5 years of experience as a management assistant at a clothes store.

Alice, a Normandy native, has a Marketing degree from the University of Nancy. After her studies, she worked as a marketing assistant for a clothing brand for four years.

The two partners met and became friends at university. They stayed in touch after graduating and later decided to open a shoe shop together.

Market Overview

Domestic Market

With 7.5 pairs of shoes purchased per child, 6 for every woman and 3.5 per man annually, France is at the top-tier for shoe consumption in Europe.

It makes sense then that France is leading the way for shoe production, as around 5,000 people are employed in the footwear sector and 21.7 million shoes are produced each year. According to Chaussure de France, the footwear market saw a total turnover of over €8 billion.

While a large quantity of shoes are manufactured in France (there are around 80 companies and factories located within the country), a majority of the shoes made in France are exported.

As a result, shoes are then imported from other countries to meet the demand in France. In 2017, Italy was the top exporter of shoes to France, followed by Germany and the United Kingdom.

The French prefer to buy shoes in-store. Large, budget shoe stores such as Gémo and La Halle aux Chaussures, as well as sports shops such as Decathlon and Foot Locker, hold a 41% market share.

These are followed by independent and chain shoe shops, which account for 28.5% of sales.

Online shoe shops, such as Zalando, Sarenza, Spartoo, which entered the shoe scene in 2005, now hold a 12.5% market share.

Traditional market players, including shoe chains such as the Vivarte and Eram groups, are facing up well to the competition posed online shoe giants. This is mainly due to the consistent desire of consumers to be able to try shoes on before they buy. Such brands are also making their own mark on the online realm, with Eram and Vivarte setting up websites to complement their store network.

According to INSEE, shoe spending has increased by an average of 5.5% per year since the 1960s. This increase is mainly due to an increasing number of shoe sales by 1.6% each year.

The average French household will spend around €330 on shoes, compared to the €1,230 that's set aside for clothes.

According to Yougov.com, women are more likely to buy the most shoes with females between 25 - 44 years old spending around €207 on shoes, amounting to an average of 12-14 pairs in their dressing room.

To obtain the best prices possible, the French increasingly wait until sales or promotions are advertised to buy their shoes - with the amount of sales having doubled from 2000 to 2015.

While casual, everyday footwear is popular in France, sneakers remain the best-selling shoes and their market share is constantly increasing, explaining the overarching presence of sports shops in the shoe distribution circuit.

Local Market

Caen has a population of approximately 108,000, with several shopping districts that attract consumers from the city centre and beyond.

The city centre has renowned shopping streets that are part of the main shopping district and host a plethora of shoe shops.

The Caennais, like 74% of the French, feel proud of their heritage, thus are willing to pay more for products made within France. The establishment of a "Made in France" trade show in Normandy, similar to the existing Parisian trade show, has increased the desire for locally--made products amongst the consumers of Caen.

Financial Highlights

We expect to be profitable from the first year of operation, with sales of €223,120 and EBITDA of €8,234 (or 3.69% of margin).

Thereafter, we anticipate that the actions indicated in our marketing plan, as well as word-of-mouth will enable us to continue developing the business in years 2 and 3.

From year 1 to year 2, we expect an increase of 8.31% in our turnover. From year 2 to year 3, we expect sales growth of 4.44% with an EBITDA of €17,693 (or 5.09% of margin).

The improvement in EBITDA margin is mainly due to a better absorption of fixed costs as a result of the sales growth.

We expect positive cash generation over the entire plan. The cash flow generated by the company will cover loan repayments, while retaining sufficient leeway to deal with unforeseen events.

The opening of Chaussure A Son Pied will require an initial investment of €70,000. The founders will invest €35,000 (50%) and we would like to obtain a loan of €35,000 to fund the remaining amount.

500,000+ entrepreneurs have already used The Business Plan Shop

Easy to get started with and well-guided throughout. Lots of business plan templates to help you and writing is easy because there are explanations at each step of the process.

Quite frankly excellent because I was able to finalize my business plan in less time than expected. This software offers a very coherent and complete approach to writing your project.

It is a very well designed software that allows you to visualise each step of your project, understand if the idea is viable or not and think about the steps needed to start your business.

The software is just impeccable. Of course, it meets the requirements of people starting a business. In addition to having a tool for putting together a proper financial forecast, there is also a tool to help write the business plan.

Try The Business Plan Shop before you buy

There’s only one way to make up your mind about a new service - by trying it out for free. So we’re offering a free trial run on our platform for 7 days.

Learn more about The Business Plan Shop

Shoe shop business plan template faq.

A shoe shop business plan is a written document that sets out the commercial, operational and financial objectives of the company over the next 3 to 5 years.

It consists of two main parts:

• A written part that presents, in detail, your shoe shop business, the team, your strategy, and your medium-term objectives.
• A financial forecast that highlights the expected profitability of the shoe shop and the initial funding requirements.

The lack of business planning is one of the main reasons why more than 50% of startups fail within 5 years. If you're starting a shoe shop, writing a business plan is a must-have in order to reduce the risk of failure of your project.

Business plans are also required by most lenders and investors in order to secure financing, therefore a business plan is also highly recommended if you're seeking a loan or equity investment for your shoe shop.

Writing a shoe shop business plan without The Business Plan Shop can be both error-prone and time-consuming - whether you're new to entrepreneurship or experienced:

• You'll need to research the structure of a business plan, what to include in each section, and what key elements investors and lenders expect to see
• You may encounter writer's block (especially if it's the first time you're writing a business plan for your shoe shop)
• You'll need to create a financial forecast on a spreadsheet which requires a solid understanding of accounting and financial modelling in order to be done without error
• You'll need to spend hours formatting financial data on Excel or Sheets before it's ready to integrate into your business plan
• Any updates to your shoe shop business plan or financial forecast will need to be done manually

Luckily for you, The Business Plan Shop's online platform and shoe shop business plan template guide you through every stage of writing a business plan, so that you can spend more time managing and growing your business instead.

Our editor follows a best-in-class structure for professional business plans. Each section and subsection includes examples and instructions to help you, while our business plan templates provide further inspiration if you're stuck.

Our financial forecasting software helps you create a forecast and integrate it into your business plan with ease. Anytime you update your data, your business plan automatically updates.

And with our forecasting software all the calculations are done for you, without errors.

The budget to start and run a shoe shop will depend on the exact concept and location.

A small shoe shop selling a limited type of shoe, such as formal shoes, requires a modest investment. A larger shop offering shoes for various genders and ages will need a bigger upfront investment and more storage space.

Note that if you choose to run an online shoe shop, this will significantly reduce your overhead costs as there's no need for a physical storefront. For many entrepreneurs, this is a reality and shoes are stored in their homes and shipped out once ordered by the customer.

However, if you choose to set up your shoe shop on a busy high street, you will likely incur high rental costs and you need to be sure that there is sufficient demand for your shoes to make this a worthwhile investment.

As an example, in our shoe shop business plan template the total initial funding requirement amounted to €70,000 (c. $75,000 or £60,000), with the founders contributing €35,000 (c. $37,500 or £30,000).

In order to assess the exact budget for your shoe shop idea, you need to do a financial forecast using a financial projection tool such as the one we offer .

The package we offer at The Business Plan Shop goes way beyond a simple blank template you need to fill. With our platform you get:

• Access to one of the best business plan software on the market
• Access to our shoe shop business plan template which contains a complete example of a written business plan and financial forecast to start a shoe shop
• Access to our entire business plan templates library - giving you dozens of examples to take inspiration from
• Access to our financial planning and analysis platform so that you can track the actual performance of your business against what you had planned in your business plan and re-plan easily

But you shouldn't take our word for it: try our solution for free and make your own opinion!

The free trial enables you to try the software for free during 7 days in order to verify that it meets your requirements before buying.

Some features are limited during the free trial, the main limits are:

• You can only create one business plan
• The financials of the first year are visible, but data for other years are hidden
• You can export your plan in PDF but not in Word or CSV
• No access to our business plan templates

You can create your account and start your free trial here .

Access to our template is included with all our paid subscriptions.

Please visit our pricing page to learn about this in more detail.

Other business plan templates and resources to discover

Online Shoe Store Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Fashion & Style

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

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 whopping 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 stakeholders ( 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
• 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.

Store Manager:

• 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.
• 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.

• Opportunities:

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

Our Competitive Advantage

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;

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 United 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 retraining 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

Related Posts:

• Online Jewelry Store Business Plan [Sample Template]
• Baby Clothing Store Business Plan [Sample Template]
• Textile Shop Business Plan [Sample Template]
• Garment Manufacturing Business Plan [Sample Template]
• Sunglasses Line Business Plan [Sample Template]

By providing your information, you agree to our Terms of Use and our Privacy Policy . We use vendors that may also process your information to help provide our services. This site is protected by reCAPTCHA Enterprise and the Google Privacy Policy and Terms of Service apply.

Inside Foot Locker’s ‘Store of the Future’ Model Guiding the Chain’s New Retail Identity

Shoshy ciment, business editor.

• Share on Facebook
• Share to Flipboard
• Show more sharing options
• Post to Tumblr
• Submit to Reddit
• Share on LinkedIn
• Share on WhatsApp
• Print This Page

Foot Locker is leveling up its store reinvention process with a new model for future locations.

The sneaker chain on Wednesday revealed its new “store of the future” retail concept that will serve as a blueprint for future store renovations and expansions. The format came to life on Wednesday with the reopening of Foot Locker’s Willowbrook Mall location in Wayne, N.J., where the new concept will be tested before it is rolled out to more locations.

“There’s so much passion for sneaker culture, whether it’s runners, basketball players or fashion forward folks who like to style sneakers with their outfits,” said Foot Locker’s chief commercial officer Frank Bracken in an interview with FN. “We just want people to know that we built this space and this entire experience to make them happy and experience sneakers in its best form.”

The new concept is part of Foot Locker’s broader plan to refresh its entire existing and future store fleet in line with its strategic Lace-Up plan , revealed in March 2023. This has included a decision to close more than 400 stores (including about 125 underperforming Champs locations) while growing its WSS brand to over 300 store locations.

In addition to relaunching the Foot Locker brand with new store formats, Foot Locker’s Lace-Up plan also involves maximizing its loyalty program, investing in technology to enhance the customer journey and diversifying its  brand portfolio . Foot Locker last month said it now expects to achieve these results — which will culminate in growing business to more than $9.5 billion in annual revenue — in 2028 as opposed to its prior target of 2026.

The store is organized by men’s, women’s and kid’s sections and from there, further divided into brands. When it comes to presentation, secondary and tertiary display points tell various brand stories without needing to only rely on the shoe wall. What’s more, the front of the store features a “drop zone” that showcases new stories and products that are trending.

“There’s layers of merchandising that this new concept permits us to do, which is great,” Bracken said.

Foot Locker relied on the feedback and perspective of some of its key vendors to design the store. And the chain will host them again at the Willowbrook location in May for a store walk-though.

Looking ahead

In measuring the success of the new store concept, Foot Locker will monitor metrics related to traffic, conversion, basket type, new customer acquisition, customer retention and overall customer satisfaction. Foot Locker also plans to integrate its new loyalty program into the customer shopping experience once it rolls out more broadly across North America.

Looking ahead, Foot Locker plans to open five pilot stores of the future in 2024. In addition to the Willowbrook Mall location, Foot Locker’s Herald Square, New York City location will become its second store of the future location. The chain will also open a location in Paris in time for the Summer Olympics and in Melbourne, Australia in October. Finally, Foot Locker is partnering with its India operator Metro Brands to open its first Foot Locker store — and a store of the future — in Delhi.

“Our plan, because they open at different points of the year, is to continue to learn and tweak and make the concept a little bit better each time,” Bracken said.

Most Popular

You may also like.

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Athletic Shoe Store Franchise Business Plan

Start your own athletic shoe store franchise business plan

The Athlete's Foot

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

The Athlete’s Foot store in Pine Ridge Square will become the athletic footwear headquarters for the City of Coral Springs, Florida.

There are 29,000 school-aged children, of which over 11,000 participate in the city’s 16 structured athletic programs. There are 27 schools, with varying degrees of athletic programs, within three miles of the proposed location.

There are 57,000 adults between the ages of 20 and 54 within three miles of the center. That is the prime age of Florida’s running community. In January’s Walt Disney Marathon & 1/2 Marathon in Orlando, there were approximately 250 participants from Coral Springs, Coconut Creek, and Parkland. That is just an example of the abundance of dedicated runners in the community. There are no stores in Coral Springs which offer a collection of “serious” running shoes, or offer the novice or “less serious” runner a quality selection and education on the proper style, fit, and sizing for their needs.

The Athlete’s Foot will focus on the above two market segments. By capturing those primary customers, the balance of residents with sports shoe needs will be drawn to us, the obvious headquarters for athletic footwear.

The store will be located at the intersection of University Drive and Wiles Road. The key co-tenants are: Fresh Market, Bed Bath & Beyond, Blockbuster Video, Play It Again Sports (they do not sell athletic shoes), a 10,000 sq. ft. daycare center, a children’s and young men’s specialty clothing store, a learning center, four restaurants, and several other youth-oriented businesses. At the same intersection are: Kmart, Steinmart, Winn Dixie, McDonald’s, Wendy’s, three banks, six additional restaurants, and three gas stations. In total, there is approximately 400,000 sq ft of retail space at this intersection. University Drive is being extended north through Boca Raton. Wiles Road is being extended east, through Coconut Creek. There are approximately 55,000 cars per day traveling through the intersection.

There is minimal competition within Coral Springs. There are several “Mall” stores, which cater to a fashion athletic footwear customer. They offer limited service and virtually no technical knowledge or expertise for running shoes. As well, they make minimal effort at capturing the “sports specific” footwear, such as soccer, baseball, or football cleats, or related accessories.

The Athlete’s Foot will be a franchise of The Athlete’s Foot, Inc., recognized as the world’s leader in athletic footwear franchising. The Athlete’s Foot has over 700 company owned and franchised stores in 33 countries. By becoming an Athlete’s Foot franchise, we benefit from a comprehensive support program that includes:

• Access to special vendor discounts including; Nike, Reebok, Fila, New Balance, Adidas, Converse, Brooks, etc.
• Advice and assistance in real estate selection and negotiation
• Proven store design, fixturing, and layout
• Planned merchandising system, assortment direction, and coordinated inventory control
• Comprehensive training in all facets of the athletic footwear business through required seminars and workshops
• Ongoing support through video, monthly publications, regional meetings, and co-franchise networking
• National Advertising Program and assistance with the local advertising campaign
• The most sophisticated “Fit Technician” and Research and Development programs in the industry.

1.1 Objectives

The primary objectives of the business plan for The Athlete’s Foot are outlined below.

• To make The Athlete’s Foot the headquarters for athletic footwear by offering knowledgeable and professional customer service. Customer service will be measured through repeat business (our goal is that 50% of our customers will return within 6 months for an additional purchase) and multiple sales (our goal is that 30% of our non-running and 60% of our running shoe sales are accompanied by an additional purchase).
• To be an active participant and supporter of the Coral Springs Athletic Community and to develop a youth and adult running club to promote a healthy lifestyle through exercise. Our goal is to have 150 running club members by the end of the 18th month of club operation.
• To achieve a 33% increase in sales year two and maintain a minimum annual increase of 15% thereafter.

1.2 Mission

The Athlete’s Foot is a retail store specializing in the sale of true athletic footwear for the entire family. The store will emphasis the sale of children’s athletic shoes and a full assortment of men’s, women’s, and children’s running shoes and accessories. We will provide consumers with technical knowledge on the proper fit and style of athletic footwear for their various needs. We will be the only full-service athletic footwear store with quality, knowledgeable sales help in this city of 100,000 people.

Our goal is to be the headquarters for the Coral Springs athlete. Coral Springs has one of the largest and most sophisticated community athletic programs in the United States. There are approximately 29,000 school-aged children within three miles of the planned store location.

We believe that to attain our headquarters position, we will need to become a visible member of the athletic community through sponsorship, seminars, team and league promotions and the development of a community running program.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

The Athlete’s Foot sells quality athletic footwear for the entire family, specializing in running shoes and accessories. We have selected a location in a renovated shopping center anchored by Fresh Market, Bed Bath and Beyond, Blockbuster Video, and four restaurants. The balance of tenants caters primarily to children. The quality of our customer service and the lack of competition in the city will allow us to quickly become the footwear headquarters for the local individual athlete and various teams, leagues and schools. This Athlete’s Foot store, while part of a worldwide chain, will be family owned and operated.

2.1 Start-up Summary

The start-up costs include:

• Store build out the store and operations 
• Inventory control, (computers and cash registers)
• The foot scanner and fixture
• Opening inventory
• Franchise Fee.

Start-up costs will be financed through a combination of owner investment, short-term loans and lines of credit, and long-term borrowing. The start-up chart and table show the distribution of the planned financing.

The Athlete’s Foot will sell the latest and most popular name brand athletic footwear for the family. Consumers will be educated as to the proper size, style, fit, and design needed for their particular use and foot characteristics. We will offer athletic footwear and accessories for almost every sport and active use. We do not intend to initially sell golf shoes or skates.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

The opening order will be placed through The Athlete’s Foot Corporate Warehouse, with their assistance as to styles and size runs. We will also be working with several other franchisees who have family footwear and specialized running stores for their input into our merchandise assortment. Over the first year, we will eventually place orders directly with the manufacturers, always having The Athlete’s Foot as backup for stock if required, due to a run on a popular shoe.

Market Analysis Summary how to do a market analysis for your business plan.">

There are approximately 110,000 residents living within three miles of Pine Ridge Square. Twenty-six percent, (29,000) are between the ages of five and nineteen. Fifty-two percent, (57,000) are between the ages of twenty and fifty-four. Coral Springs has one of the strongest youth athletic programs in the country. There were 11,359 children participating in the 16 various sports programs throughout the year. In addition, through the YMCA and other non-municipal sponsored leagues and programs there is an additional 3,500 children participants. This does not include the residents of neighboring cities like Parkland and Coconut Creek, which are within the market area and have an additional 3,000 participants. The city has 47 public parks, of which the six largest are devoted solely to athletics. The three-mile radius has four high schools, four middle schools, and 14 elementary schools in the public school system. There are an additional five private schools and three new schools planned for the next 18 months. Coral Springs is a young, active community, with outdoor sports played year round. The need for cold weather boots and shoes does not exist, therefore, athletic shoes are worn year round.

The residents of Coral Springs are in the upper income brackets, with an average income of approximately $68,000 per year. Eighteen percent of the area’s population earn in excess of $100,000 per year. In the next three years, that percentage is expected to increase to 25%. This affluent, active resident is willing to buy the latest in athletic footwear, if the service and assortment are strong.

The top two ACORN Consumer Groups determined by CACI, an international information technology corporation, within three miles are: Prosperous Baby Boomers, (30.7%) and Baby Boomers with Children, (17.4%). These are our primary target markets.

While we have focused on the immediate three-mile radius of residents, the co-tenancy of Fresh Market and Bed Bath and Beyond will generate customers from a 5 – 7 mile radius. Additionally, there are two specialty retailers in the center, Widensky’s Children’s Clothing and Jonathan Reed Young Men’s Clothing, which have a customer base throughout Broward and Palm Beach Counties.

We are confident that we will capture the true athletic adult with our assortment and service. By capturing the children’s business, through the same assortment and service, we can also become the “family athletic footwear store.” While the typical “family adult” may not be as “active” as our target runner, the convenience and professional service we will provide will allow us to become “their” athletic footwear store.

To recap, our target markets are:

• The True Athletic Adult
• The True Athletic Participant Children.

By serving these customers well, the balance of the less active community will identify The Athlete’s Foot as the athletic footwear headquarters.

4.1 Market Segmentation

The Athlete’s Foot feels there are two types of customers the store needs to attract: the Runners and the Non-runners. These groups are subdivided in the following sections.

4.1.1 Runners

• “True Runner” – Runs between 20 – 40 miles per week. This person is generally between 30 – 45 years old, both male and female. This segment may also include high school track and cross country runners. This person wants the latest in technology, regardless of price. The True Runner would be the running circuit’s answer to the “computer freak.” You may find him/her running at 5:00 a.m. or 10:00 p.m., whenever it can be fit into his/her schedule. The True Runner frequently runs in races throughout Florida and may even travel further to combine races with social visits or vacations. Generally, the True Runner is in the upper income brackets. There are 6,000 families earning over $100,000 per year within three miles of the proposed location.
• “Weekend Warrior” – May run up to 20 – 25 miles per week, but most of that is on Saturday and Sunday. A job or family restriction may not allow running to be scheduled during the week. This segment includes males and females between the ages of 25 – 35. This person is most frequently the parent of a young family and is looking for quality and an affordable price. The Weekend Warrior will run in local races. Typically, the Weekend Warrior is in the upper-middle income bracket: often two spouses working, with substantial disposable income. There are close to 12,000 families in this income bracket within three miles of the proposed location.
• “Running for Attention” – People in this segment run 6 – 10 miles per week. He/she wants to look like a runner regardless of ability and will frequently go to parks, the beach, and other highly visible places to run. Most often is a single person looking to meet other singles. Interested in the latest styles, but, he/she must look good. A person who is Running for Attention purchases coordinated outfits and accessories, running bottles, and timing watches. This segment also spans both males and females between the ages of 30 – 55. A member of this segment can be seen frequently at races, but not always running. He/she also belongs to local health or tennis club. There are approximately 7,000 single households within three miles of the proposed location.
• The first is the ex-high school or college runner. He feels the need to remain active/competitive, but does not have the discipline to train alone. Will become an active runner in spurts, but not consistently because he needs motivation. Typically, the Running for Need segment is comprised of males between the ages of 18 – 30.
• The second are the individuals who have been told by a doctor, spouse, or employer that they need to get into better shape … or else! This is a very enthusiastic runner initially, but, quickly realizes that this is not always fun and can become very boring. Again, not a consistent runner, but, can become one if they remain motivated. Motivation relies heavily on the support of  family and friends. While it is impossible to determine the number of people in this segment, these folks may be one of the easier to contact. Through medical journals, health food stores, and medical offices, this is a prime target for referral marketing.
• “Running Fashion” – This is someone who purchases running shoes, but, is not a runner. He/she simply likes the style or the feel of a quality running shoe. Many working people on their feet for extended periods, factory workers, delivery people, airport employees, any type of outdoor work not requiring safety shoes, and students are a few examples.

4.1.2 Non-runners

• Infants – While not a high volume, the first pair of shoes for most infants is an athletic style. The first pair of Nikes or Pumas can be a very proud moment in a young family’s development. Being able to properly measure and fit an infant’s foot is critical to developing a following in this market segment. Credibility in the sales to the parents or older sibling will determine if you receive to opportunity to serve the newest member of the family. There are approximately 6,000 children below the age of five within three miles of the proposed location.
• Children – Possibly the most important segment other than adult running. With approximately 20,000 potential customers, this group must be a primary focus for any family business. Regardless of athletic level of participation or interest, virtually every child has at least one pair of athletic shoes. More often, children have several, depending on their preference of sports or style. The importance of capturing this business is intensified based upon the built-in obsolescence due to the growth of their feet. There are approximately 17,500 children between 5 – 12 within three miles of the proposed location.
• Teens – This used to be the most important segment in athletic footwear. The local teen boy and girl had to have the new Michael Jordan high-tops, at $100, every eight months. Today, that need has diminished, but teens still remain a critical element to a successful athletic shoe retailer. While it may not be the “required” footwear in middle or high school, it remains a primary asset of every teen’s wardrobe. Due to their ever-present concern for being in style, most Coral Springs teens still require name brand, in-style athletic shoes in their stable of footwear. As well, every teen needs a pair for practical use. That may include participant sports, physical education class, or simply something to wear with jeans. Teens also wear a lot of sandals and athletic aqua/sandals, which are newer categories in athletic footwear stores. Coupled with their still-growing shoe size and concern for the latest style, teens remain an important focus. There are approximately 10,500 teenagers within three miles of the proposed location.
• Adults/Non Participant – While some adults never participate in a sport, almost all own a pair of athletic shoes. The non-participant adult may be the most difficult segment to capture. The upper income adult will still want name brand newer styles. The middle and lower income adults will look to the discount department stores and “discount shoe warehouse” concepts for practical athletic footwear. This customer is also less concerned about customer service and the proper fit, since they are not as hard on their athletic shoes and buy less frequently.
• Active Young Adult – Twenty to twenty-four years old. This is a small segment, approximately 5,500 people, but these individuals tend to be very active. Participating in sports is still a social activity for this primarily single group. Baseball, Basketball, Softball, Soccer, and Flag Football leagues are popular with this age.
• An active, upper income participant will look for quality, name-brand footwear based upon the sport that requires the purchase. These adults are willing to pay a higher price for a new style or features they deem are important.
• The active middle income participant will again look for a quality shoe at a competitive price. This group may not require the newest style, but still wants good quality with basic features for the sport they participate in.

4.2 Target Market Segment Strategy

We will focus on two primary market segments:

• The “Active Family” – The Active Family will be the focus of our non-running marketing effort. They give us the largest target, most opportunity for multiple sales, and allow us to gain further access into the community’s numerous leagues. A typical active family would be described as parents in their late 30’s and early 40’s with two children. If the children each play two sports, that would require a minimum of two pair of shoes per year, for each. If the parents are also active, that could amount to an additional two pair per year. With the need to purchase six pair of shoes per year, we expect this family to make shoe purchases anywhere from three to six times during the year. They may visit the store an additional three to four times for accessories or simply to browse while in the center. For example, there are 13,000 participants in the Coral Springs Youth Soccer Program. Every one of them needs a new pair of soccer cleats every year. Currently, they need to leave Coral Springs to get a good selection of styles. This is a volume customer, but our goal is that the entire family comes along for the ride, and through service and knowledgeable sales help, an additional sale is consummated. This average sale will be approximately $40.
• The “True Runner/Weekend Warrior” – The next most important segments will be the participant runner. The average sale for this customer will be between $70 – $90. This customer should always make an additional purchase when visiting. Running socks, running apparel, running accessories, or supplements should be added to this ticket. By capturing the True Runner, the less serious runner will be attracted to the store to be able to associate with their more serious counterpart.

We anticipate that 70% of our annual volume will come from these two classifications. The balance will be sport-specific buyers and non-family participants.

4.3 Industry Analysis

The retail athletic footwear business has been tarnished in the past two years due in part to the failure of several highly visible large store formats. Most recently, Just For Feet filed Chapter 11 and is currently liquidating the entire company stock. In addition, several large general sporting goods retailers have either closed entirely or reduced the number of stores in the chain. There are a number of reasons for this demise, the lack of demand for high-priced basketball shoes being a primary reason.

For the general sporting goods chains, the drop in basketball shoe sales as well as the drop in popularity of NBA/Logo clothing has taken it’s toll. The “superstore” concept in the sale of athletic shoes has proven to be unsuccessful. You can sell as many shoes in 2,000 sq. ft. as they were selling in 15,000 sq. ft. Neither of those concepts provided competent customer service in the purchase of a pair of participant shoes. Too many styles causing broken size ranges and constant clearance sales educated the consumer to not rush out to buy a new offering. Anyone looking for technical information when purchasing a pair of running shoes was simply unable to find it.

Successful athletic shoe stores are offering quality customer service and a strong assortment of the new style of shoes. They must also offer shoes in all price ranges, to assure that the entire family can be satisfied.

Our aggressive sales and marketing approach, while slightly reducing the gross margin, will allow for anticipate significant increases in volume (33% year two), to offset any reduction in net profits.

4.3.1 Competition and Buying Patterns

When purchasing athletic footwear, customers need a knowledgeable sales person to guide them to the proper shoe. By offering our exclusive Athlete’s Foot Computerized Scanner, as well as extensively trained associates, called Fit Technicians, we will provide the most sophisticated service in the market.

The competition within Coral Springs consists primarily of the regional mall athletic footwear stores. There are three stores in Coral Square Mall, all company owned. These stores cater to the “fashion athletic” customer. Coral Square Mall is a “B” mall, and has a reputation within the community of being a “hangout” for teenagers and gangs. The true participants generally have to leave Coral Springs for Boca Raton or East Ft. Lauderdale to shop in specialty running or sporting goods stores. Our advantage over these mall stores will be superior customer service and technical knowledge, and a more convenient atmosphere, which the mall stores cannot reproduce.

There are three children’s specialty stores that carry infant and children’s athletic footwear in Coral Springs. One is well entrenched in the community and will be a difficult competitor. Our advantage over these stores will be our larger assortment, specialty sport shoes (which these stores do not carry, ex; soccer and baseball cleats), and the ability to serve the entire family’s athletic footwear needs. Our challenge will be their ability to provide non-athletic shoes for the youth customer.

The other competition will come from discount department stores (Wal-Mart, Kmart, Target), and discount “rack” shoe stores (Payless, Rack Room, Famous Footwear). These stores will serve the non-participant athletic shoe customer, which is not a primary customer of ours. We will carry an assortment of discontinued and clearance shoes, which should help us to be competitive with these stores.

Strategy and Implementation Summary

The Athlete’s Foot uses a strategy of providing a service to the entire market. While we will focus on our two primary customer segments (active families and runners), we offer a product that virtually every consumer requires.

We will create an atmosphere that is appealing to the “true athletic footwear customer.” The balance of customers will come because they will see this as the “place” where athletes buy their shoes.

The store will be merchandised in an exciting, athletic atmosphere. Televisions will continually play tapes of sporting events and live sports broadcasts. There will be posters highlighting the top athletes and their athletic shoe choices. There will also be a section to pick up information about upcoming races, events, and seminars. Eventually, race sign-ups will occur in the store as well as presentations from shoe manufacturers, product representatives, nutritionists, trainers, coaches, runners and hopefully, professional athletes.

Strategic Assumptions:

• Every resident in Coral Springs is a potential customer.
• This location and co-tenancy gives us an opportunity to draw customers from outside Coral Springs.
• By marketing to our two target segments, we will expose ourselves to additional new customers.
• We will aggressively pursue the community sports programs through sponsorships.
• We will build a running club/program, that caters to the “average” runner, versus the other clubs which cater to a more serious competitive runner.

5.1 Competitive Edge

Initially, our competitive edge will be the recognition of The Athlete’s Foot as a national chain. There is a sense of comfort buying from a large chain. Our complete assortment and high-tech design will also immediately appeal to customers.

The other edge we want to develop in the future is to be the “meeting place” for Coral Springs runners. This will be accomplished through our planned running club, sponsored races, sponsored fun runs, run for health awards programs, children and adult running clinics, and footwear seminars. In addition, we will be stocking a full assortment of running supplements, hydration fluids, protein bars, and other items that may be needed on a short notice basis. We have even envisioned a credit system where local runners can plan a rest/drink break in the store when running the local paths. They can stop in for hydration fluids or protein bars without having to carry money.

We have spoken with the Director of the Parks & Recreation Department for the City of Coral Springs. He has indicated that he would consider a program where The Athlete’s Foot offers participants a 10% discount on all shoe purchases from the store. The customer would receive 5% and the league would receive 5%. In this manner, the league would support and promote the opportunity by including a flyer/coupon in the sign-up package for each participant.

5.2 Sales Strategy

All potential sales will be attended to in a timely fashion. While there will be a sales incentive bonus program, long-term salesperson relationships will take precedence over sales closures. Our goal is that 50% of our customers return within six months. We will market directly to the customer through mailings, phone calls, league presentations, and Internet/email contact.

Sales associates will be trained to “turn-over” a customer who has a more specialized need, if they cannot fully service the requirement.

Special orders will be encouraged as a method to satisfy a specialized need. We will enforce as liberal a return policy as possible. Because of our affiliation with the 700-store Athlete’s Foot chain, we can demand a higher level of service from vendors in regards to returns and special orders.

5.2.1 Sales Forecast

The following table and chart show the forecasted sales for The Athlete’s Foot.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The Athlete’s Foot Franchise will be owned by Jane and Howard Lefkowitz. Jane has been a public school teacher for the past 14 years in Dade County, Florida. Howard is the President of Sizeler Real Estate of Florida. Inc., which manages, leases, and develops 1 million sq. ft. of retail property in Florida for a NYSE REIT. Jane will run the daily operations of the business, including community relations. Howard will continue in his current position at Sizeler, but will assist in the buying, financial planning, and weekend coverage.

6.1 Personnel Plan

The personnel plan is included in the following table. It shows the anticipated salary of the owner, assistant manager, full-time associate, and three part-time associates.

Jane Lefkowitz will manage the store on a daily basis. There will be a salaried assistant manager. We anticipate one additional full-time employee. One of these three people will open and close the store each day. The three part-time associates will work nights and weekend hours. In addition, Jessica Lefkowitz will work an average of one night and one weekend day per week. Howard Lefkowitz will also assist on the weekends. Salary and hourly wage estimates are detailed in the table below.

Below we have created a brief job profile and anticipated employee characteristics for each position. As we have stressed throughout the plan, customer service and knowledgeable employees are a primary focus for The Athlete’s Foot.

Assistant Manager:

• Responsibility for opening and closing the store, receiving and stocking inventory, upkeep of the customer data base, visual merchandising and customer service. Also, share in the supervision and training of staff.
• This person would not necessarily need to be athletic or a runner. We are looking for dedication, honesty, strong work ethic and either some retail management experience or a strong business sense. Although a college graduate would be preferred, our salary projection may preclude that. This position has the most flexibility, due to the importance of experience and reliability. This associate would do less selling and more stock work and supervision than the others. A middle-aged woman whose children are in high school and is looking to get back into the work force may be an ideal candidate. In addition, a recent high school or military service graduate with a strong work ethic may also fit this position. This position will be eligible for a monthly overall sales incentive and annual goals bonus.

Full-time Associate:

• This position will be primarily customer service oriented. This person will also assist with store opening and closing, as well as receiving merchandise. We would anticipate that this individual would have several specific areas of responsibility outside of sales. Those might be vendor returns and sales floor pricing.
• This associate would preferably have a background in retail shoe sales. They need the flexibility to work nights and weekends as required. We would like this associate to be a local resident, active in the community, possibly in the sports programs. A runner would be ideal for this position, but, certainly we cannot count on finding a person with each of those credentials. This position will be eligible for a sales-based incentive program.

Part-time Associates:

• These associates would focus primarily on customer service. They will be working during the peak sales periods, in the evenings, and on weekends. They will need to be outgoing, friendly, professional, and presentable. They will need to be able to work well with children. While this type of position in our competition is generally filled with teenagers, we will be looking for local athletic teachers, coaches, and athletes who are looking to supplement their income. There will be a bonus program for generating leads on community contacts and sponsor programs, as well as for exceeding their sales goals.

Financial Plan investor-ready personnel plan .">

Sales growth will be aggressive the first 18 months as we sharpen our merchandise assortment, size scales, and stock levels to better meet our customer’s requirements. We anticipate a sales increase of 33% during our second year of operation.

Marketing will continue to average 3% of total sales.

We will invest residual profits into reducing debt and the lost income from large cash holdings.

Company expansion, while not a necessity, will be an option if sales projections are met and/or exceeded.

7.1 Important Assumptions

• The Athlete’s Foot will grant a restriction against competitive stores within four miles of this location, other than the existing store in Coral Square Mall.
• The Athlete’s Foot will continue it’s program of promoting better running shoes on a national level.
• The space selected for this store will require minimal demolition and no changes to the restrooms, electrical, plumbing, or storefront to open The Athlete’s Foot.
• Bed, Bath & Beyond, Fresh Market and Blockbuster, which have all confirmed that these are strong locations, will remain in the center for at least the first three years of our operation.
• We will be able to become an active sponsor of community sports within the City of Coral Springs.
• We anticipate that we will be able to complete required financing, lease documents, franchise documents and space buildout to allow for a July 2000 opening. If not, we would most likely open in October, to be prepared for the holiday season.

7.2 Projected Profit and Loss

We predict that during the second year of operation, our high level of customer service and strong assortment will allow us to generate approximately 5% profit. This will be above the normal two to three year period required for a start-up retailer. Our sales projections are conservative. Should sales increase as we anticipate, the profit-to-sales ratio could be as high as 10% by the end of year three.

7.3 Break-even Analysis

A Break-even Analysis table has been completed on the basis of average costs/prices. With fixed costs, per average sale and average variable costs, we need monthly sales, as shown below, to break even.

7.4 Projected Cash Flow

We are positioning ourselves as a minimal risk concern, with steady cash flows. While we have not accounted for it in the projections, we anticipate receiving two or three months free base rent after store opening. That will help us reduce costs and increase marketing during the start-up period. We have allowed for a more aggressive cash balance initially, to allow us to react quickly to unforseen merchandise needs, missed classifications, “hot item” reorders and hopefully, higher than anticipated sales. This is particularly important for our first back to school and holiday sales periods. If we capture previous “mall customers” as anticipated, our sales could increase as much as 25% during the first two quarters of operations.

Once we have established a required cash balance level, (approximately six months after opening), we will reduce the projected cash balance to decrease debt and decrease the opportunity of cash held.

7.5 Projected Balance Sheet

All of our tables will be updated monthly to reflect past performance and future assumptions. Future assumptions will not be based solely on past performance but rather on economic cycle activity, regional retail indicators, national athletic footwear trends, and future cash flow possibilities. We have been, and will continue to be, working with an experienced partner in a large and well respected regional CPA firm, who has both personal and professional experience in start-up retail operations.

We expect solid growth in net worth beyond the first fiscal year of operation.

7.6 Business Ratios

The following table contains important business ratios for the retail athletic shoe store industry, as determined by the Standard Industry Classification (SIC) Index code 5661.

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software