How to Finance a Skateboard Shop
Skateboard retails sales is a multibillion dollar a year industry. Skateboard shops offer skateboarders the opportunity to see, touch, experience and compare boards, wheels, trucks, safety equipment and accessories before buying. Skateboard shops come in two types: storefront and Internet order. Since Internet order shops don't offer skateboarders the hands-on opportunities of a storefront shop, financing a storefront shop is the way to go.
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Things You'll Need
- Collateral
- Industry contacts
- Equipment lists
- Real estate listings
- Personal financial statement
- Profit and loss projections
- Comprehensive business plan
Instructions
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Using SBA Loan Guarantees to Finance a Skateboard Shop
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Prepare a detailed business plan according to the guidelines of the U.S. Small Business Administration. A skateboard shop requires the same elements as any retail business.
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Provide for expenses for all possible contingencies in the business plan. Don't forget to include utilities, insurance and security needs. Skateboards are targeted goods for thieves. Include costs for theft recovery.
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Submit the business plan to any bank taking advantage of SBA loan guarantees. The SBA will not loan money, but will guarantee the bank's exposure lending you money. So the SBA acts as a co-signer for your loan.
Using Leasing and Renting to Finance a Skateboard Shop
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Locate a good space for your skateboard shop and lease or rent the space. Leasing and renting are in essence the landlord financing your business operation without the large down payment that buying a location requires.
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Lease a space allowing alterations and improvements. Making the space acceptable and enjoyable for the customers (skateboarders) will improve customer traffic and sales.
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Use barter as a way to finance the shop by conserving cash and to increase business contacts. Barter equipment and other retail items for materials needed to improve the shop. A contractor or building supply company owner with children who skate or who skates himself would be open to discussing such a barter arrangement.
Using Consignment Sales to Finance a Skateboard Shop
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Negotiate consignment sales with manufacturers and distributors to reduce cash cost to stock the skateboard shop. Consignment sales are a company providing product to retail locations and expecting payment when the product is sold at full retail. This reduces the retailer's cash exposure.
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Use consignment sales to maintain reasonable inventory without overstocking limited-shelf-life products. Avoid being stuck with a skateboard deck or truck that falls out of fashion with skateboarders.
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Use consignment sales for just-in-time delivery, reducing overhead and exposure in a volatile ever-changing skateboard market. Last week's great board could be this week's totally uncool piece of junk nobody wants.
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Do not hesitate to return unsold products to the wholesaler or manufacturer if sales are slow.
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