How To Start A Women’s Shoe Store Business
Around the globe, shoes are indispensible part of human existence. From China to Russia, Nigeria, India and other countries, shoes have become great fashion accessories. Women’s Shoe Store is a very lucrative business because women wear shoes on daily basis. Owning a Shoe Store could serve as a great source of income. Shoes are indispensable when it comes to women fashion, women wear fancy shoes to look fashionable.
The kinds of shoes women usually wear include – Heels, Flat shoes, Snickers and Court Shoes. One of the vital things about business is that it can be managed by anyone and it can be passed down from one generation to another. Business can be a major source of inheritance from parents to their children. This kind of business can be done either online or offline. There are salient factors one must consider in order to set up women’s shoe store business and they are-
BUSINESS PLAN
The first thing anyone must consider before setting up a business is a business plan. After generating the business idea, then the business plan follows suit. A Business plan is a blueprint of a formal written document that contains business goals and a particular time frame in which they can be accomplished. It serves as a road map because it tells the nature of business, strategies it intends to meet to attain its target. To start up the business of women’s shoe store, it is very paramount that one must draft business a plan so that it can enable him/her to achieve all the goals. One of the benefits of a business plan is that it will enable one to get loan from the bank.
LOCATION OF BUSINESS
Location of business can be defined as the place or area where a business is situated. Location of business to a large extent determines whether a business will succeed or not. One must have a clear picture or image of the kind of business before thinking of location, a bad location at times can be difficult to repair. There are factors to consider in the localization of your women’s shoe store and they are-
- Proximity to the Market
The nearer or closer you are to your customers, the better chances you have that they will buy from you over and over again. Who are your customers? And are they close to the location of your business? You must have answers to these questions before you set up a business. Is your business close to the manufacturer or wholesaler? These are factors to consider.
- Women’s Shoes Store Supplier
One of the greatest thin to consider is how to source for the shoes, the Shoes can be manufactured by the company, it can be imported from different countries, the shoe seller can depend majorly on wholesalers to supply the shoes. For a start up business, I think the shoes sales person will wholly depend on wholesalers for supply and after awhile the Shoe sales person can be a manufacturer.
- The Demographics
Demographics is one of the paramount factors in locating your women’s shoe store. You must first consider who your target audience are and their interests. When considering demographics you must think of your community. Is your consumer base local or urban base? Does percentages of it supports your business or match your consumer profile?
- Good Infrastructure and Accessibility
Good infrastructure is beneficial to any business; basic social amenities such as water, power supply should be available. Good business structure should be put in place that will attract consumers. A business should not be situated in a too busy area that it will cause traffic for customers; there should be a large parking space for cars so that customers can feel comfortable.
- Competition
This is also a very important factor, if there are many competitors selling the same product, they can lure your customers to themselves and you will end up losing your customers. The best way to avoid competition is by making your products unique and different from your competitors. And secondly, by not setting up your business in an area that is full of competitors,
Finally, these factors are key factors that will help one establish a very marketable woman’s shoe store if adhered to.
TYPE OF BUSINESS
Another key factor to consider before starting up a business is kind or type of business to indulge into. The following are the type of business we have-
- Sole Proprietorship: This is also known as a one man business. This is a kind of business that is owned by an individual. It is very simple and easy for decision making but the disadvantage is that he bears the risk alone and it also offers the least amount of financial and legal protection for the owner. A business vendor may choose this option if he wants to retain full control of the business. It is very easy and inexpensive to operate. There are also tax benefits, as income is considered the owners personal income as he is taxed once.
- Partnership: As the adage goes “two heads are better than one”. Partnership is a business owned by two or more people. One of the benefits of partnership is that joint decisions are made and different ideas are merged together to enhance a business. Like Sole Proprietorship, Partnerships are able to take advantage of flow through taxation. One of the disadvantages of partnership is that it leads to slow decision making.
- Limited Liability Company (LLC): Limited Liability Companies are the most flexible type of business. It is a mixture of a partnership and a corporation designed to make it easier to start small business. LLC combine aspects of both partnerships and corporations. They retain tax benefits of sole proprietorship and limited liability corporations. The company exists as its own legal entity. This protects the owners of LLCs from being personally liable for the operations and debts of the business. One of the disadvantages is that it can lead to bureaucracy (slow decision making).
- Corporation: Corporations are separate legal entity created by shareholders. Incorporating a business protects owners from being personally liable for the company’s debt or legal dispute. A Corporation is more difficult to create as compared to other three kinds of business. A corporation is very complex and it may contain up to 100 shareholders. Most common is what is known as a “C Corporation,” which allows your business to deduct taxes like an individual- the only problem with this is that your business will be taxed twice, both at the corporate level and at personal level.
Choosing the right of business structure for your women’s shoe store is very important and this particular decision determines the success of that business. The right of business will help you determine the employees you want to hire, taxes and also investors you want to attract to your business.
REGISTRATION AND LEGALIZATION
One of the most popular questions asked by business owners is “how can I register my business?” There are a lot of processes involve to register business, it not just about going to local country office and getting registered. It involves several checklist items including registering your business structure, registering to pay taxes, registering to get a permit.
Most government of different countries in the world provides a lot of guidance in making sure your business is operating legally. Below are some tips and best practices on how to register your business at federal, State and local agency level.
- Decide on Business Structure: Before you register your business, you need to decide on the business structure to set up as a legal entity. If you decide to create a corporation or non profit, an LLC or a partnership, you will have to register your business and file certain documents with your state government. If you are operating a Sole Proprietorship, you need to register your business with your state. However, if you choose to operate your business under any name other than your own. You will need to formally file your trade name with your state.
- Register Your Business Name: If you choose your business under a trade name- for example “Classic Shoes Accessories” – you cannot operate that business under that name until it is officially registered with your local government. Untill then, the legal name for your business essentially defaults your given name.
- Register with the IRS and get a Federal Tax ID: This is particular to businesses with employees, any partnerships or corporation or other organization. You will need an Employer Identification Number (EIN), to check whether you need an EIN. You can apply for EIN online. If you don’t need an EIN you can simply use your Social Security Number to administer your business finance. Most small business chooses sole proprietorship or partnership to avoid the risk of high taxes. Filling business taxes individually can help you keep your personal and business finances separate. Make the right choice.
Initial Capital is the amount of money used to start up a business. There are different sources of capital and it is advisable that one should diversify his sources of capital. There are different ways to source for capital to start your women’s shoe store, it is best to use different alternatives. Below are some sources of capital for a business:
- Personal Savings or Investment: The first investor in a business is yourself; you must have a certain amount of money before you can think of any business idea. It can be your own cash or collateral on your assets. This shows your commitment to your business.
- Your Loved Ones: This is the money obtained from friends, family, parents and spouse. This is also known as “Patient Capital” which will be repaid later as your business income increases. There many disadvantages associated with this kind of capital- family and friends may want to have equity in your business; family and friends hardly have enough capital to support a business.
- Angels: Angels are extremely wealthy individual who invest a lot of money in small firms. Angels usually finance early stages of business and they also contribute technical and management knowledge to business based on their field experience. In exchange for risking their money, they reserve the right to supervise the company’s management practices. This implies that they must be part of the Company’s board of directors.
- Government Grant and Subsidies: Government agencies provide grants and subsidies to help small scale business. The criteria to obtaining a government grant may be tedious. These are the criteria-
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- A detailed project description
- An explanation of the benefits of your business
- A detailed budget with full cost
- Details of relevant experience and background on key Managers
- Complete application forms when appropriate.
- Bank Loans and Overdraft
A loan is an amount of money borrowed from the bank to be paid within a stipulated time and there must be collateral while an overdraft is withdrawing more than what you have in your bank account. Bank loans and overdraft are used to finance small scale or medium size business. Bankers are looking for companies with good business records to grant them loans but for a business start up, you must present a good business plan to be considered.
DRAFTING A BUSINESS BUDGET
A budget estimates the organizations revenue and budget over a stipulated period of time. Every successful business needs a budget and drafting a budget is a key way your dreams can come true. According to Victor Butcher, of the Butcher financial Service in Memphis “it’s like a road map for your business”. There are factors to consider before creating a budget-
- Research Cost: You need to research cost so that you will not be caught unaware by unexpected costs. When operating a women’s shoe store, your budget will need to be created to account for fixed and variable costs. Fixed cost includes rent, utilities, phone, internet, accountant, legal fees, salaries, advertising and marketing. Variable costs include the costs of goods sold and labour costs/ commissions.
- Project Revenues: Calculating how much money will be generated from your business activities on monthly, quarterly and yearly basis. This will help your business to be successful.
A Sample of Women’s Shoes Store Budget
| START – UP EXPENSES | |
| Legal | $600 |
| Stationery/Business Card | $500 |
| Credit Card Set- Up | $200 |
| UPS Account | $400 |
| Supplies(Shoe boxes and invoice) | $800 |
| Website Start-up | $3,500 |
| TOTAL START -UP EXPENSES | $6000 |
| START – UP ASSETS | |
| Cash Required | $10,000 |
| Start- up Inventory(Structures & Infrastructures) | $35,000 |
| Other Current Assets | $7,000 |
| TOTAL START – UP ASSETS | $52,000 |
MARKETING/ADVERTISING
Marketing can be defined as creating awareness for your business, Marketing have to do with informing people about your business. Marketing is a practice of individuals or organizations (including commercial businesses, governments and institutions (it is a way to promote business to generate profits. Marketing is majorly targeted to a specific group of people that is to say the target consumers, some business products are not used by all individuals. It is very expedite to understand the needs of your consumers and how your product can satisfy them.
Advertising is a form of communication that majorly aims at influencing people to patronize a product or service.
The target consumers here are Women and young ladies, Men don’t use shoes. The focus here should be on women. There are different marketing outlets to market women’s shoe store and they are;
- Television and Radio Commercials
The Television and Radio are broadcast medium that can be used to market a business, it is also known as “Advertising”. There are many viewers and listeners that follow this medium. Businesses that have used these mediums have experienced tremendous growth. The Radio is an audio medium while the Television is both an audio and visual medium. Advertising or Marketing of products can come through jingles. A jingle is a short drama that is used to promote a product or service.
Another way to market a product through this medium is through sponsorship of programmes, a business organization can sponsor a program to get advertising slot in the media house. The business can also go into partnership with the media house and the media house will give the business commission.
- Social Media
The Social Media comprise of Facebook, WhatsApp, LinkedIn, Instagram and Twitter. This can serve as a great platform to market a business. Many people around the globe are active on social media and it is the best way to update your audience about your business. One of the benefits of marketing through the Social media is that you can reach a wide range of audience at a very short time; Young people check their social media accounts daily. It is also very cheap and very accessible to wide range of audience. Social Media have helped a lot of businesses to grow in recent times. Social Media also gives room for feedback mechanism, your customers can go to your social media wall to express themselves about their satisfaction of your product, the more “likes” you have, and the more people you attract to your business. As your business grows, there may be a pressing need to hire a Social Media Manager.
A business website provide overall information about your business, it also serves as a direct platform for e-commerce. You can start with a small or complex website because people use the internet for everything. If you want to use the website payment system, you will spend a lot of money in setting it up. You can put your price tag for the shoes you want to sell on your website. You can use a business website to market your business to your audience. You must have a website URL and share the URL to your audience on your social media outlets. Every website needs a host, as a small business hosting your website may be expensive, you may need to select an external web host or a share web host.
- Other Business Website
You can market your product through other websites; it can be news site, business site, blogs and forums. As audiences browse different Internet sites, they can also see your products. A lot of business sites don’t charge high rates for advertisement like the broadcast media (Television and Radio).
- Billboards, Posters, Stickers
Billboard is a large outdoor advertising structure typically found in busy roads or traffic; they usually contain slogans and images of product or people using the products. They are majorly located in highways to attract pedestrians and drivers. Billboard advertisements are designed to catch a person’s attention and create a memorable impression very quickly, leaving the reader thinking about the advertisements after they have driven past it. It has to be very short, catchy and readable because people will read it while being passed at a high speed. There are different types of billboards and they are: Digital billboard, Mobile Billboard and Multi-purpose billboard.
Posters are other form of billboards located mostly in less busy roads or community roads. Posters are smaller compared to billboards and they are viewed mostly by residents and pedestrians.
Stickers on the other hand are just like cards that be distributed to friends and family to promote your business. They must be beautiful and colorful.
Choosing the best Marketing/Advertising Medium
Selecting the best and appropriate channel to advertise women’s shoe business will massively contribute to the overall success of your business. To market or advertise a business depends solely on the size of the business. If the business is a small scale business then you can use a cheaper advertising medium. If the business has great capacity, it can combine different advertising mediums.
INSURANCE
Insurance is a means that protects from risk and financial loss. The popular adage says “No one knows tomorrow” Every business should be insured because of unforeseen circumstance that may appear in the future. The best form of insurance for women’s store store is property and business income insurance. Property insurance protects infrastructures of a business while business income Insurance protects the business from loss of income the business may suffer from disaster.