Document Sample
Kicks Powered By Docstoc
                      Steps to Setting up A Small Shoe Business

   -   Make a business plan
   -   Find a property
   -   Find a distributor
   -   Budget

Things you’ll need:
   1. Shoe Distributor
   2. Shoe Supplies (Sizers, footies, displays, fixtures)
   3. Merchant account and cash register

    1. Determine what type of shoes your business will focus on: Men’s athletic or dress
       shoes, women's shoes or sneakers, kids wear, or a mixture. Decide on the name of
       your business based on the type of shoes you are selling (e.g. Katy's Kids Shoes).

   2. Decide where and how you will set up shop. It is best to open a shoe business in a
      shopping district around other clothing stores. Search for mall strips in areas that
      have a lot of shopping traffic to see if they have or will soon have stores for rent.
      Scour the area to make sure that there aren't other shoe stores in the area before
      closing on a shop; you don't want to be in a situation where you are constantly
      competing with another local shoe store for customers.

   3. Contract with a shoe distributor to provide you with an ongoing supply of shoes.
      Handpick styles from its catalog or ask it to simply ship you a mix of its most
      popular shoes for each month and season. Visit wholesaler districts in your area
      (such as Canal Street in Manhattan, N.Y.) to browse their stock of shoes and
      negotiate a wholesale price. As a new customer, you may have to make upfront
      payment to shoe distributors and wholesalers, but make sure that you have
      reasonable return or exchange terms. Have the dealer ship items directly to your
      new store.

   4. Open a merchant account. Purchase a credit card machine and a register to
      accept cash.

   5. Purchase fixtures, shoe displays, tables and other shoe-related supplies to start
      setting up your new store. Put one display table right at the front middle of the
      store so customers see your best styles as they walk in. Line the right and the left
      walls with displays that reach no higher than the average height of your
      customers. Place signage around the store advertising the price of your shoes.

   6. Take your time deciding where to place each shoe on display and organize the
      rest of your shoes in your back room so that you can easily retrieve sizes for your
      future customers. Place boxes of footies (keds) and shoe sizers throughout the
   7. Hire a professional to manufacture and hang a weather-resistant sign (printed or
      neon) above your shop door with your shoe business name. Set a grand opening
      date for your store and advertise specials on your local radio stations and

Survival Tips: These tips can help you to overcome many of the factors that lead to small
business failure.
  Develop a good marketing and business plan that takes into account customer
    needs, competition, pricing and promotional strategies.
  Have a good working knowledge of business law or hire a lawyer.
  Understand your business finances, such as cash flow and handling credit.
  Keep a good inventory of your products or services and your existing customers.
  Supervise, train and motivate your staff.
  Make sure you have the experience, expertise and talent to run your business.
  Plan every part of your business from start to finish.
  Know your market and define how much of it you will be able to capture.
  Make sure you are offering a product that is unique and competitive or at a lower
    cost than that of your competitors.
  Don't under-estimate your expenses and over-estimate your revenue.
  Make sure you have some cash reserves or a line of credit to help you get through
    slow periods.

How to find a wholesale distributor:

   1. Understand your industry's distribution channels. There are a lot of ways a
      product can go from manufacturer to retailer. Not all wholesalers serve the same
      market. Understanding your industry's distribution channels, and knowing where
      you fit in the supply chain, can help you find the right wholesale supplier for your
      retail business.

       Here's a quick primer on some different types of wholesalers:
          • Manufacturer - For some products, you can buy directly from the
              manufacturer. This is basically what a "boutique" store does -- buys from
              small (sometimes one person) manufacturers.
          • Importer / Exclusive Distributor - In some industries, a company might
              have the sole rights to import and distribute a product in a certain
              country. Some may sell directly to retailers, but more often, they setup or
              sell to smaller local wholesalers.
          • Wholesaler / Regional Distributor - There are usually regional
              wholesalers who take delivery of boxcar sized lots, break them down, and
              sell truckloads boxes of products to local wholesalers.
          • Jobbers, "wagon peddlers" - These are the guys who make daily deliveries
              to local grocers and retail brick-and-mortar stores.
          Each product industry has its own unique distribution channels. Some retailers
          will move enough volume to bypass jobbers, or maybe in a smaller industry,
          importers sell directly to retailers. (That's why it's easier to find a wholesaler
          when you already know the product you're looking for.)
 When you first start you, you'll be buying from the smaller wholesalers at higher prices.
 As your volume increases, you'll be able to get better pricing and/or move up the supply
 ladder to a bigger wholesaler.
 2. Try the manufacturer first.
 You might as well start at the source. If you're selling branded items, go directly to the
 manufacturer of the product. They might sell to you, depending on their minimum order
 If you're too small for them or they only sell through established distribution channels,
 ask them for a list of distributors you can contact.
 By starting at the source (the manufacturer), you can either get the lowest prices or at
 least get a list of the most reputable distributors to kickoff your search.
 3. Have a productive first contact with a wholesale supplier.
 Take the list of wholesale distributors you got from the manufacturer, and start
 contacting each one. What you're looking for are minimum order requirements and
 their wholesale unit prices. To get the best responses, be honest about what you're
 looking for (don't try to sound "bigger" than you are), keep your emails short and to the
 point, and be friendly.
 Here how I would phrase a first contact email to potential wholesalers:
 Hello, I'm starting a small <insert product line> store. What are your minimum order
 requirements and wholesale prices? Thanks for your time! -Greg
 Keys to that action packed 2-line email:
 "small" -- This tells them the volume I expect to purchase from them. By pre-
     qualifying myself, I don't waste their and my time.
 "minimum order requirements and wholesale prices" -- This gets to the heart of the
     matter. It's really all you care about in a retailer-supplier relationship. Make it clear
     what you're asking for from them.
 "Thanks" and "Greg" -- Be casual and friendly. Those are regular folks on the other
     side too. Be friendly, and they'll be friendly and helpful.

            BDC Financing: Starting up a business
                                    Business Proposal

What to Include:
  1. An Executive Summary introducing your company, what you will do or provide to
       the customer, and how the customer will benefit from what you propose.
  2. A statement of work or technical approach describing what you will do or provide
       to the customer. An implementation schedule and description of deliverables is
       usually included. If products are being proposed, then product descriptions are
       usually provided (the amount of detail depends on the customer’s requirements).
  3. A management plan describing how you will organize and supervise any work to
       be performed. A schedule of major milestones and allocation of resources may be
  4. Corporate qualifications that describe your capability to do or provide what you
       are proposing. Relevant prior experience is usually highlighted.
  5. A Staffing Plan that describes how the project will be staffed is sometimes on
       large service contracts. If particular people are important to the approach, their
       resumes are usually provided.
  6. Contracts and Pricing. If the proposal is being used to close a business deal, then
       business and contractual terms are usually provided.

   1. The goal of a proposal is to persuade --- here is what I want you to conclude, and
      here’s why
   2. Most proposal evaluators don’t want to be there --- here is what I hope you’ll read
      and here’s the obligatory detail that you’re not going to bother with.
   3. A winning proposal is easy to evaluate. Picture the evaluator with a checklist in
      hand going through your proposal --- check, check, check. State conclusions that
      reflect the evaluation criteria, and then explain how or why.

Who: Who will do the work, who will manage the work, who does the customer call if
there is a problem, who is responsible for what
What: What needs to be done/delivered, what will be required to do it, what can the
customer expect, what will it cost
Where: Where will the work be done, where will it be delivered
How: How will the work be done, how will it be deployed, how will it be managed, how
will risks be mitigated, how long will it take, how will the work benefit the customer
When: when will you start, when will key milestones be scheduled, when will the project
be complete, when is payment due
Why: why have you chosen the approaches and alternatives you have selected, why the
customer should select you

 Use as a checklist for reviewing a draft proposal
                                     Business Permits and Licenses

                                            Description                               Cost   Renewal (Annual)
    Business Permits

Business Incorporation                                                         $416.33       $108.62
Business Name, Sole      Required by anyone who wants to carry on              $62.89        $62.89
Proprietorship or        business in Nova Scotia, either on their own or
Partnership:             with partners, and who wants: 1) to operate
Registration             without legally incorporating the business 2) to
                         use a business name that is different from their
                         personal name(s). A "sole proprietor" is anyone
                         who is carrying on a business which is not
                         incorporated and who is doing so without any
                         legal partners, that is, carrying on business by
                         oneself. In Nova Scotia, a sole proprietorship is
                         actually registered as a "partnership" -- but
                         with only one partner listed, in other words, it
                         is a partnership of one. Note: It is legal to carry
                         on business in Nova Scotia without getting this
                         Registration provided that you use only your
                         own personal name in your business dealings.
                         Individuals and firms whose primary business
                         registration is in the Province of New
                         Brunswick do not have to register their
                         business name in Nova Scotia in order to
                         legally operate in this province.


                         Some or all of the following may be required:
                         1) If the business will be retailing taxable goods
                         or services, they will need an HST
                         (Harmonized Sales Tax) Registration with
                         Canada Revenue Agency; 2) Most businesses
                         operating in Nova Scotia must pay Business
                         Occupancy Tax to the municipality where they
                         are located; 3) Within one week of opening, a
                         business must notify the Regional Director of
                         Assessment, Service Nova Scotia and
                         Municipal Relations; 4) If the business hires
                         any employees, it is responsible for deducting
                         and remitting personal income tax,
                         unemployment insurance premiums and
                         Canada Pension Plan deductions to Canada
                         Revenue Agency - Taxation.

Sign License             A Sign Permit is required for any permanent           $100          N/A
                         sign, either attached to a building or structure,
                         or free standing
                         Inspection required after

Business Name: Search    Required by anyone who wants to find out if a         $56.02    N/A
and Registration         business name is already in use in Nova Scotia,
                         and/or wants to reserve a business name for
                         their own use. In Nova Scotia, having a
                         business name reserved by the Registry of
                         Joint Stock Companies is the first step in
                         registering that business name for use in Nova


                         Applications sent in by fax or by mail are
                         different: there is no free preliminary search.
                         The fee for the Business Name Reservation
                         must be paid in advance and is not refundable.
                         NUANS Search: If the preliminary search of
                         the Registry database of business names in use
                         in Nova Scotia does not reveal a potential
                         conflict, the applicant then submits a formal
                         "Business Name Reservation Request", along
                         with one name and the required fee (the fee is
                         good for only 1 name search). The proposed
                         name is then forwarded for the detailed
                         NUANS search. Federal Search: If you intend
                         to use your business name outside of the
                         Atlantic provinces, NUANS also offers an
                         option of searching all of Canada for potential
                         conflicts. This is called a "Federal" search. It is
                         your responsibility as the applicant to contact
                         the Registry (or Access Nova Scotia) to get the
                         results of that search.

Business Registration    Most Businesses in Canada need to register            N/A       N/A
                         with Canada Revenue Agency to get a Business
                         Number. Registration is mandatory if your
                         business requires a GST/HST, Payroll,
                         Corporate income tax or Import/Export
                         account. Businesses are able to register online
                         using business registration online, over the
                         phone or by mail.

Business Registration:   **Legal advice is recommended                         $182.94   $34.30
Limited Partnerships
                         Required by anyone who wants to establish a
                         limited partnership in Nova Scotia. A "limited
                         partnership" is a partnership, which allows for
                         the liability of some of the partners to be
                        limited. Legal advice is recommended for
                        preparation of registration documents. Most
                        limited partnerships are formed for a specific
                        period of time, and cease to exist when that
                        period is finished.


                        Business: Name Search and Reservation: file
                        an application for registration of the limited
                        partnership. It is not the practice of the
                        Registry to register limited partnerships
                        without legal counsel on the part of the
                        applicants. The application form is not
                        available online. Some or all of the following
                        may be required: 1) If the business will be
                        retailing taxable goods or services, they will
                        need an HST Registration with Canada
                        Revenue Agency; 2) Most businesses operating
                        in Nova Scotia must pay Business Occupancy
                        Tax to the municipality where they are located;
                        3) Within one week of opening, a business
                        must notify the Regional Director of
                        Assessment. There is no waiting period if
                        applying in person. Waiting period is 6 - 10
                        business days if applying by mail.

Miscellaneous Permits

Alarm Permit            Any Burglary, Robbery or Fire Alarm System is      N/A               N/A
                        required to be registered with the municipality.
                        The goal of this registration is to reduce, and
                        hopefully eliminate, the number of false alarms
                        that currently take place.

On Site Sewage          The installation of an on-site sewage disposal     $60.87            $60.87
Disposal Approval       system requires a permit/approval.
                                                                           (To Minister of   (Every 3 Years)
                        Prerequisites:                                     Finance)

                        The application for approval must be
                        supported by an assessment and a selection or
                        design of an on-site sewage disposal system
                        that has been completed by a qualified person
                        certified by the Department. After the
                        application has been completed, it must be
                        submitted, along with the appropriate fee. If
                        the required supporting information has not
                        been provided, the application package is
                        returned with an explanation as to what is
                       missing. Once an application has been
                       accepted it is reviewed to ensure that the
                       activity being proposed meets the minimum
                       standards, policies, guidelines, procedures and
                       regulations that are administered by the
                       Department. If all the requirements are met
                       and the application is approved, the approval
                       will be sent to application contact by mail. This
                       approval will list any terms and conditions,
                       which the applicant must satisfy. If an
                       application fails to meet these criteria, staff will
                       notify the application contact. NSEL Inspectors
                       are authorized to conduct audits at any time
                       during the application, approval and
                       installation process.

Water Meter Approval   The Halifax Regional Water Commission must             $30.00   N/A
                       approve any new connection to the municipal
                       water system. This approval will allow the
                       applicant to install a new water service and
                       trigger the HRWC to install a water meter.


                       Detailed plans must be submitted for review
                       and approval before the Permit may be issued.
Occupancy Permit       Given that shoe stores typically occupy
                       commercial space, you will be required to get a
                       certificate of occupancy. Check with the permit
                       processing offices of your local government.
                       Note that you may be required to get a Building
                       Permit and have your property inspected if you
                       plan to make renovations to the store area.

                                                           TOTAL COST: $909.05         $678.21

                                                                                       (Every 3 years)
                                             Fixed Expenses

          Example of Expenses:

                                  Service                                   Monthly       Annual
                                                                            Estimate     Estimate
Fees and accounting (licenses, permits, accounting)
Insurance (liability and loss due to fire, etc.)
Loan Payment (assume $50 000 was borrowed at %10 interest/annually)
Miscellaneous Expenses (office supplies, janitorial or cleaning services,
Permits                                                                                $909.05

                                                                                       (Every 3
                           Total Fixed Expenses
                              Gross Margin
           Sales Required (Total Fixed Expenses/Gross Margin)
                           Design & Construction

Customer Comfort/Seating
Retail Items
Office Supplies

Shared By: