Shoes are here to stay from the lowly sandals to
practical wear and creative high heel. They come in different forms but
collectively serve a practical purpose.
They have become part of our lives and dress code both
corporate, fun and leisure wear. An entrepreneur can consider establishing a
shoe company.
There are three ends of the business which are wholesale,
retail and manufacturing. The business person needs to decide on which one he
prefers.
The financial obligation in either manufacturing or retail
sales are determined by the size of the operation, machinery and work force.
We have the single cobbler and his apprentice to highly sophisticated
automated machinery and massive warehouses. Same applies to retailers and
wholesalers such as the little shop in the corner or a massive shoe mall.
Therefore the size of the company and business structure
plays a big part in capital expenditure. Let us first focus on shoe retail
business.
Shoe
retailer
The business template for a retailer is simpler than
manufacturing. The retailer sources his wears from a wholesaler or directly
from manufacturers. The entrepreneur has to target a particular demography or gender
before launching the enterprise.
This is not a hard and fast rule because you can buy both
male and female shoes if you desire. However narrowing your field and focusing
allows better knowledge of the product and specialization.
The major advantage in this business is having in-depth
knowledge of your product. You need to build a working relationship with
specific wholesalers and manufacturers. The lower end of shoe retailing is the
individual buyer that sources from retailers or seeks used shoes.
Retailers use various methods to reach top manufacturer
and retailers such as direct contracts, advertisement and referrals. You can decide
to operate from home or a business premises.
A home based enterprise reduces startup cost and leaves
cash for other things. Here are steps on how to start your own shoe company.
Register
your Company
To start the enterprise you have to register your company
as a limited liability company. Choose a good catchy name that people remember and
identify with your brand.
The name of the enterprise is almost as important as the
cloths you sell. A company with a respected name and quality merchandise will succeed.
Try to obtain a vendors license for tax and other allied
matters and find out other state regulations.
Do Market
Research
You need to do lots of research on shoes, location,
target customers and major competitors. The quickest way to success is studying
your market and understanding your customer’s needs.
Manufacturers
and Suppliers
Find trust worthy manufacturer and supplies to form a
business arrangement. There are many methods you can use to locative major
players in the industry.
One way is to use your country’s yellow pages and trade
publications. There are many online resources and website to point you in the
right direction.
Search classified advertisements in magazines and newspapers
for business partners. Both wholesalers and manufacturers want to be found. So they
invest heavily on advertisement and corporate events.
Once you have located a few, narrow down your choices. Try
to visit each company to ascertain the validity of their claims. Also checkout
the shoes they sell/manufacture to see if they support your vision and mission.
Another thing to look into is credit facilities and discounts
from them. Retailers enjoy some special arrangement and benefits from
wholesalers and manufacturers.
Some manufacturers and wholesalers offer drop shipping
services. This reduces the stress of shipping items to customers from your
store.
The wholesalers take care of the modalities of shipment
once they get the order. The unit cost of shoes bought from these companies
determines who you partner.
Open
a Merchant Account
As a wholesaler or retailer you need a merchant account. The
account is a company account that aids in purchase and credit card
transactions.
Most commercial banks accept merchant accounts from
limited liability companies. An advantage of opening the account is easier
access to low interest loans.
Go Online
Many wholesalers and retailers after going online wonder
why it took them so long to leverage on online resources. Such enterprises
usually get phenomenal growth after launching their company website.
A company website is a marketing tool that never sleeps. You
have your shoe images, description, prices, location and contact information.
The merchant account comes handy in accepting credit card
payments for goods.
Marketing
Blues
You need effective marketing to turn a profit. Early days
in shoe retail business is tough and challenging. The public has to be aware of
your products and services.
On the day of your opening create a fan fair atmosphere
and offer discounts. You need to bring on your A game and win new customers.
Market your company through print media such as
handbills, posters and banners. Try word of moth or hiring sales representatives.
Place advertisement
in your local daily, radio jingles and YouTube channels. Place advertisements
using Adwords and Facebook adverts.
Paid classified at a popular shopping destination will
also bring in the customers. If you specialize in ladies shoes organize a
fashion show in collaboration with designers.
Another effective marketing avenue is placing
advertisement in popular fashion magazines in your area. If your sell sports
shoes place advertisement in top sports magazines.
The Service
As a shoe wholesaler or retailer your customers should know
which services you render. The service could be home delivery or sourcing
products from specific suppliers. You might also need a bus to deliver orders
to your clients.
Make sure your prices are competitive and affordable. Don’t
try to make all your profit from a few product but spread it.
Shoe
Manufacturing Business
Shoe manufacturing is a little bit more challenging than
wholesale or retail. The shoe maker needs to buy equipment and have technical
skill.
The shoemaker can decide to open a small shop and provide
personalized service. They do this by creating shoes for customers on
commissioned job bases.
A customer goes to the shoemaker and commissions a shoe. The
manufacturer builds the shoe according to measurements and specifications.
Large manufacturers go into mass production of shoe and
automation. They create a design, make a template, cut, sew, stitch and clue. They
are capable of producing hundreds of different shoes monthly.
Recap
on starting a shoe business
1
Decide on wholes, retail or producing the
shoes
2
Register your business name
3
Study competitors
4
Find good supply partners
5
Let wholesalers define their services
6
Open a merchant account
7
Build a website for your company
8
Market your shoes
9
Order from the best manufacturers
10
Apply proper pricing
Related reading. Leather Bag Making Business
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