How to Start a Shoe Retail Business
According to Research and Markets, a market research company, in 2006, there were more than 30,000 retail shoe stores in the United States. Americans are big shoe consumers, particularly when it comes to athletic and women's shoes. While a popular market may prove lucrative to a committed entrepreneur interested in starting a shoe business, it may also prove to be fiercely competitive. To compete, you must identify a niche, demonstrate excellent customer service, offer competitive prices and stand out from other retailers.
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Instructions
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Visit your local tax commission office and incorporate your business. Then obtain a Sales Tax permit, a building or occupancy permit, a federal tax identification number and a business license, if your state requires it. Find out what federal or state signs must be posted in your back room, such as minimum wage or employment laws.
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Find the location for your shoe store. Contact mall management and ask about vacancies. Frequent strip malls and shopping centers for vacancies. Determine what size you will need, how big of a back room and back office you will need and any amenities you may need, such as phone jacks, water and bathrooms.
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Purchase your supplies and inventory. These will include shopping baskets, display cases, exit signs, shelving, racks, shoe mirrors, shoes store bags, shoe and leg mannequins, inserts, shoe sizers for adults and kids, footlets, shoe-fitting stools and any specialty gear. Visit the National Shoe Retailers Association for a comprehensive list of shoe equipment suppliers (see link below). You will also need cleaning supplies, advertising signage, cash registers, receipt paper, schedule forms, bank deposit forms and gift-wrapping materials (if offered).
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Purchase insurance against fire, damage and theft, as well as liability and product insurance and worker's compensation insurance.
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Set up a merchant account with a provider such as Merchants Account Express (see link below) so that you can begin accepting credit cards. They can help get you set up with the right equipment, such as your Point-of-Sale (POS) terminal and provide you with Quickbooks and other software to help you track and manage your inventory and payroll. When in doubt about a business, refer to the Better Business Bureau (see link below).
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Select in-demand shoe brands or styles to sell in your store. Consider adding accessories such as handbags, socks and laces. Pay close attention to fashion trends. Don't overbuy. Visit wholesale suppliers such as those listed in the link below. If you intend to buy brand name shoes such as Nike or Reebok, to avoid purchasing knock-offs, research the company thoroughly. Check eBay for closeouts.
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Ensure that your employees are providing the utmost customer service by training them to measure feet and to recognize which types of shoes would suit which types of customers.
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Tips & Warnings
To reduce theft, consider displaying only one shoe or adding a security tag system. Consider purchasing a website for your store from GoDaddy.com or a similar site. Create a comprehensive business plan and budget for your shoe store to help you keep your eye on the goal. Visit SBA.gov for help on writing your business plan.
