Starting a skate shop allows a company owner to follow his passion for skateboarding while earning a profit through the marketplace. That enthusiasm is essential because the earning potential from a skate shop might be as low as $30,000 per year, especially early in the store’s life. However, this sum is certain to rise in the future. A skateboarding store provides skateboards, skateboarding gear, and other skating essentials. Some well-known skateboard stores have been known to fund local riders and promote skating locally through skate movies and demonstrations, sometimes known as demos.
Summary of the Skate Shop Industry
According to a news release on PR Newswire by Grand View Research, Inc., the skateboard industry is booming and is expected to be worth $2.4 billion by 2025. Increased awareness of childhood overweight and obesity has resulted in increased support for skateboarding and other sports that keep youngsters physically active and healthy. Increased public skate park building and the government’s push for skate park construction have resulted in more parks and opportunities for skateboarders.
North America accounted for 31.7 percent of worldwide skateboard industry revenue in 2018, making it the largest market, thanks partly to greater public knowledge of the sport and widespread product availability, which drives sales.
Here Is Step By Step Guide On How To Start A Skate Shop :
Step 1. Make a Business Plan.
Every firm needs a strategy. This will serve as a manual to help your business through the launch process while staying focused on your core goals. A business plan also helps prospective partners and investors understand your organization and its vision:
- Executive Synthesis: A summary of the full business plan; this should be produced when the plan has been completed.
- Business Overview: Provides an organization overview, including its vision, mission, ownership, and corporate goals.
- Services and products: Describe your products and services in detail.
- Market Analysis: Conduct a SWOT analysis and assess market trends such as variances in demand and development possibilities.
- Analyze your top rivals, analyzing their strengths and flaws, and compile a list of the benefits of your services.
- Examine your company’s unique selling propositions (USPs) and design sales, marketing, and promotional tactics.
- Management Team: An overview of the management team, including duties and professional backgrounds, and a corporate hierarchy.
- Operations Strategy: The operational plan for your firm comprises procurement, office location, critical assets and equipment, and other logistical aspects.
- Financial Plan: A three-year financial plan includes initial expenses, a break-even analysis, profit and loss predictions, cash flow, and a balance sheet.
- Include any extra financial or business-related papers in the appendix.
It might be a daunting undertaking if you’ve never written a business plan before. Consider hiring a business plan professional from Fiverr to produce a high-quality business plan for you.
What are the ongoing costs of running a skate shop?
The most expensive monthly expenditure will be keeping an appropriate inventory selection. If you wish to have an online store, you will have to pay to host and maintain it. Hosting skate events at least twice a year can help you build your reputation in the community. Go Skateboarding Day is June 21st, so mark your calendars and plan a special event. The fees vary based on the size of your event and how much help you can acquire from other companies in the neighborhood.
Many skate shop owners will also fund a skateboard team to showcase the best local talent. Team jerseys and complimentary merchandise should be provided to team members. When feasible, schedule demos for them and thank them for a well-done job. You’ll need to consider compensating them as the team advances, and cash becomes more easily available.
Step 2. Name Your Skate Shop
Choosing the correct name is both crucial and difficult. If you run a solo proprietorship, you may use a business name other than your own. When registering a business name, we recommend doing the following research:
- The business records of your state
- Federal and state trademark registrations
- Platforms for social media
- Availability of web domains.
It is critical to register your domain name before someone else does.
Step 3. Find Potential Suppliers.
When you sell a product, you need suppliers who charge acceptable pricing. This has become a serious topic in recent years, and it is necessary to shed light on it. When you create a skate store, you will require various skateboarding-related items and accessories.
Your prospective buyers will seek high-quality goods at a reasonable price. This is only achievable if you have relationships with reputable suppliers who can provide high-quality goods. When starting a skateboard business, pick the correct supply provider. Many people need to pay more attention to this vital part of starting a skateboard business. However, in the grand scheme, paying attention to this element is critical.
Step 4: Funding for your Skate Shop
The next stage is to get finance, and there are several methods to do so:
- Bank loans are the most typical way, but approval needs a sound business plan and a stable credit history.
- SBA-guaranteed loans: Through an SBA-guaranteed loan, the Small Business Administration can act as a guarantor, assisting in obtaining that elusive bank approval.
- Government assistance: A few financial support programs help entrepreneurs get started. Visit Grants.gov to find out which ones could be suitable for you.
- Family and friends: Make an approach to friends and relatives for a business loan or investment in your project. Because SEC requirements apply, getting legal counsel is a good idea.
- Crowdfunding: Websites such as Kickstarter and Indiegogo provide a low-risk alternative in which contributors support your vision. Entrepreneurial crowdfunding platforms such as Fundable and WeFunder allow different investors to support your firm.
- Personal: Use your funds or the sale of property or other assets to support your business.
What are the prices of skateboards in skate shops?
On average, a high-quality skateboard costs around $170. When you pay full money for high-quality components such as name-brand wheels, trucks, and bearings, however, if you’re frugal, you may reduce it to roughly $120. You may also get a nice bargain on a full and save money.
How much profit of skateboard shops can make?
What kind of profit can a skate business make? Skate store operators estimate annual profits ranging from $30,000 to over $200,000. The amount of money you make is mostly determined by the community you belong to, the location you choose for your shop, and the quality of things you sell.
Step 5: Register Your Skate Shop
Registering your business is a must-do step since it is required for paying taxes, acquiring financing, opening a bank account, and other milestones on the path to getting a business up and operating. Furthermore, registration is thrilling since it formalizes the entire procedure. You’ll have your own company after it’s finished!
Register to Pay Taxes
Obtaining an Employer Identification Number, or EIN is the final step before you can pay taxes. You may apply for your EIN online, by mail, or by fax; for more information, go to the IRS website. Remember that if you’ve opted to be a sole proprietor, your EIN might be your social security number.
Once you’ve obtained your EIN, you’ll need to select a tax year. Financially, your company will function on a calendar year (January–December) or a fiscal year, a 12-month term that can begin in any month. This determines your tax cycle, whereas your business structure determines which taxes you’ll pay.
The IRS website also includes a checklist for taxpayers, and taxes can be submitted online. It is essential to get the assistance of an accountant or other expert to ensure that your taxes are completed appropriately.
Step 6: Prepare your marketing strategy.
Marketing is critical to the success of a skating store. Social media marketing, print advertising, web advertising, and event sponsorship are all common marketing tactics for skate businesses. As part of their marketing plan, skate shops often sponsor teams and have them come in and showcase items or conduct a beginners clinic. Skate shops will also sell or, in some circumstances, give away t-shirts and stickers, which their customers would wear and turn into walking advertising for the store.
Marketing expenses will vary depending on the activity, but a shop owner who can conduct part of their marketing can save money over hiring a professional.
Who is the target audience?
You’ll welcome the newcomer looking for assistance and supplies to get them started. The business will also draw customers who, while not skaters, love a certain shoe or apparel brand you offer. Individuals who have established a shared relationship with others in the community via skating will be your bread and butter. Each of these customers is crucial to the existence of your company.
Skate store owners that are successful are thoroughly entrenched in the skating community. They are enthusiastic about sharing their knowledge and enjoyment of the sport and providing a space for skaters to communicate with others who share their interests.
Most skaters consciously support small, local skate shops over large corporate stores or internet retailers. Remember, you’ll want to keep your skate shop small and intimate. Your determination and passivation for a stake shop will determine your success—best of Luck on your journey of starting a Skate Shop.