How to Open a Shoe Business
If you have a passion for shoes, you may be able to translate it into a profitable endeavor. The market is competitive and moves very quickly, but with a solid combination of fashion design sense and business savvy, you can make your mark in designing or retailing shoes. These days you have the option of the online and traditional sales channels, plus new tools for customizing your products and selection for your customers.
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Instructions
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Determine your product line and its target market. If you are passionate about vegan, eco-friendly products and you live near a young artistic community, you may choose to open a store next to the local food co-op. Baby shoes with customized name embroidery could be a hit with grandparents. You may stock dance shoes and offer a wide variety in your online storefront. Whenever you consider stocking a product, your first question should be, "Who will buy these?"
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Secure distribution channels. If you are designing shoes, you need retailers who will sell them for you. If you are selling other people's shoes, you will need to set up an online store, a brick and mortar store, or a wholesale operation that serves large quantities of shoes to retailers. No matter how good your product is, you cannot sell it if you cannot get to your customers. Lock in contracts with your distribution partners whenever possible.
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Choose your suppliers. As a designer, you will need raw materials with which to make your shoes. As a retailer, you will need to find designers whose shoes you would like to carry. For a small business just starting out, it may be difficult to afford the inventory for very high-end shoes. In all cases you will want to limit your inventory and monitor it carefully to ensure that you have just enough product in to supply your customers with popular styles in the correct sizes, but are able to order new styles as they come out and to quickly discontinue shoes that are not selling without taking much of a loss.
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Set up your financing and funding. You will need to have money in the bank, or a line of credit available with which to pay all of your operational costs and order inventory until your store has turned a profit and become self-sustaining. Even if your store is making money, you are vulnerable if you do not have adequate cash on hand to pay your suppliers and operating costs. Be frugal, and secure financing before you need it.
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Market your business. As a designer you may supply shoes to local celebrities, influential fashion writers, independent films, charity events, or anywhere else your designs might get noticed. Make sure your retail outlet as well is advertised to local fashionistas, and ensure your online store is ranked highly in search engines and rated highly by bloggers and fashion magazines.
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