¡Congratulations! You’ve made your first step by becoming an entrepreneur and owning a shoe repair business. But sometimes it’s hard to know exactly where to start, that’s why we’ve created this guide to help you set up your business and get in the game like a pro:
Detail the startup costs
When starting a brick & mortar business, consider all the expenses that might come your way. According to Startup Stories, the average startup cost for a shoe repair business is $19,267 in 2023. This number is significantly low compared to the initial investment of other businesses related to service.
This cost includes some key expenses such as the storefront rent fee, POS System, utilities, software expenses, and personnel costs.
Getting a clear picture of how much money you need at the beginning will avoid cash flow until you start getting good ROI.
Create a business plan
Having a properly developed business plan will help you make better decisions and ultimately, achieve success. In fact, owners with a business plan see growth 30% faster than those without one, and that’s because it’s there, so you can lay out your goals, track your progress, and determine if your business is going on the right path.
Your business plan should also include a market and competitive analysis, customer segmentation, marketing, cash flow projections, and logistics and operation plans.
Think about the services you can provide
If you’re investing in a shoe repair business, you should know that there are many ways you could make your store more profitable. One of them is expanding your business by offering other services.
Customers that look for a shoe repair store, are usually expecting to find a wide range of extra services, such as:
- Shoe care products.
- Key duplication.
- Luggage and other leather goods repair.
Offering these services as an added convenience will attract more customers and generate additional revenue.
Identify your target market
Before choosing a location for your brick-and-mortar, it’s important to consider the location and what’s more convenient for you. High-traffic area locations benefit from having numerous passersby, which means more people get to see your store, but the rent could be too expensive for a small business like the one you are planning to have. Store rentals around suburban areas are usually more affordable and a better choice, while still located in a shopping center.
Get to know your competition
Another thing you should pay attention to is the demand for shoe repairs in your chosen area and what’s the competition like in your surroundings. Analyze the number of similar businesses close to your desired location, and take a closer look at what they’re offering and what their prices are like, so you don’t end up under-pricing or overcharging for your services.
Get your licenses, tax registrations, and business registrations
Considering all the legal requirements for your store is essential if you want your business to fully operate and avoid legal issues. This involves anything from registering for various state and federal taxes to getting the necessary permits to open a shop.
If any of these sounds too complicated, you can always look out for an experienced accountant or a business lawyer to give you some guidance to make the legal structure of your new endeavor.
Opening a shoe repair shop can be exciting, but it is vital you do some research, get to know your competitors, and make sure that you have exactly what your potential customers might need.
Once you have this figured out, take away!