Considering that the footwear industry is a multi-billion market, opening a shoe store might be a lucrative endeavor. However, it’s crucial to plan ahead and take the necessary steps to make sure your store is legally compliant and well-branded.
In this article, we will walk you through each step of the process—from formulating your business plan to opening a bank account. Knowing how to start a shoe business is an essential step if you’re looking to start up your own footwear brand or just want to open a retail shop.
- Make a Plan for Your Shoe Store
- Create a Legal Entity
- Register Your Shoe Store for Tax Purposes
- Open a Bank Account for Your Business
- Set Up an Accounting System for Your Shoe Store
- Obtain All of the Required Permissions and Licenses
- Get Insurance for Your Shoe Store
- Create a Branding
- Create a Website
- Set Up Your Company Phone System
- Our Takeaway
How to Start a Shoe Business
Make a Plan for Your Shoe Store
Envisioning your business is the first thing you need to do when starting a shoe business. Are you planning to start a sneaker business or focus on general footwear? Once you’ve made your decision, the next vital step is to choose a favorable location for your business. You might want to avoid opening your store near another major retailer—the competition would be too fierce for you to beat. You also don’t want to be located in a small town or rural area. People are more likely to drive out of their way to a big city mall than venture into the sticks looking for shoes.
Last but not least, you should consider the financial aspect before venturing into this new experience. In fact, starting a shoe company might be a bit more expensive than other types of businesses. This is largely due to the costs associated with manufacturing and selling shoes. So be prepared to invest some money first if you want to get your business off the ground.
Create a Legal Entity for Your Shoe Shop
Once you’ve finalized your business plan, the next step is to form your store into a legal entity. You can choose to open a corporation, a limited liability company (LLC), or a partnership. Each of these options has its own benefits and drawbacks, so you’ll need to understand which is the best option for your business.
Yet, establishing an LLC or corporation will protect you from being personally liable if your shop gets sued.
Register Your Shoe Store for Tax Purposes
After your store is a legal entity, you will need to register for taxes. This includes registering for a business license and paying state and federal income taxes. It’s also essential to set up a system for tracking your sales and expenses so you can accurately report your taxable income.
Open a Bank Account for Your Business
Before bringing your shoe business ideas to fruition, you must open a business bank account for your company. This will make it easier to manage your finances and keep track of your expenses and income. It’s also a good idea to get a credit card for your business, so you can start building up your credit history.
Set Up an Accounting System for Your Shoe Store
The next step is to set up an accounting system for your store. This way, it’s possible to create a system for tracking your sales and expenses, as well as recording your monthly profits and losses. Having good accounting records will help you make smart business decisions.
Obtain All of the Required Permissions and Licenses
There are still some necessary steps before finally opening your shoe shop—getting a few permits and licenses from your local government, such as the business license and zoning permit.
If you’re planning to sell your products online, you might also need a special permit.
Insurance is another important consideration when starting a shoe business. You’ll want to make sure your store is covered against any potential losses, such as theft or fire. There are a number of different insurance options available, so you should talk to an insurance agent to find the best policy for your business.
Create a Brand for Your Shoe Store
One of the most important aspects of starting a shoe business is creating a strong brand identity.
For instance, make a logo and slogan representing your store and the shoes you sell. You’ll also need to come up with a marketing strategy to promote your brand.
Create a Website
In order to reach a wider audience, you might want to create a website to extend your business reach. This way, customers have a place to learn more about your business and browse your selection of shoes. You’ll also need to set up a shopping cart system so customers can purchase shoes online.
Set Up Your Company Phone System
Finally, you’ll need to set up a business phone system so customers can contact you if they need help with anything. This could be a simple landline or VoIP system tailored to your needs.
How to Start a Shoe Business in 2022: Our Takeaway
If you’re thinking of starting your own business in 2022, opening a shoe store is a great idea.
Not only are shoes always in demand, but the market is growing every year. With our tips on opening a shoe store successfully, you can hit the ground running and start making money from day one.
Frequently Asked Questions
Is shoemaking profitable?
It’s not a secret that shoemaking is a profitable business. However, this business has its downfalls like any other. That’s why it’s crucial to research the market and make sure there is demand for the type of shoes you are planning to sell.
How much does it cost to start a shoe company?
The cost to start a shoe company can vary depending on the type of business you want to create. You’ll likely need to invest in some startup costs, such as inventory, marketing materials, and insurance—just to mention a few.