How to open a shoe repair shop

A shoe repair shop is a business that even a beginner can master. Starting investments are 150 thousand rubles. You can recoup them within six months, earning 50 thousand rubles a month.

Small household services to the population are in high demand. If you are looking for a simple business idea with minimal investment, then opening a shoe shop is a good option. The idea is not new, but has already proven itself as a profitable business.

Shoe repair is a service that does not lose its relevance. At any time, people will repair shoes. Demand rises during a crisis when people save money and prefer to go to a shoemaker to repair a pair of shoes rather than buy a new one.

The advantage of the idea is that shoe workshops successfully operate in any city, in residential areas and shopping centers, in the budget format of stalls and large workshops. In a word, any format can become successful if you plan and organize your business correctly. To do this, you need to take 10 steps, which will be discussed in this article. 

Checklist for opening a shoe shop

Key business indicators:

  • Business entry threshold – 150,000 rubles;
  • Payback – from 3 to 6 months; 
  • Average check – 250 rubles;
  • Net profit – 50 thousand rubles / month.

Basic steps to open a workshop:

Now let’s take a closer look at each step. 

Step 1. Market Analysis

1. First of all, it is necessary to evaluate the idea itself – how relevant and promising it is. Shoe care is needed constantly, so small workshops will never be left without work. 

According to experts, already in the first season of wearing, every tenth pair of shoes needs to be repaired. At the same time, in the second year, minor repairs are needed for 20-30% of shoes. And every thirtieth pair is made of expensive materials and requires special care. Therefore, the services of a shoe workshop are still relevant. 

And to assess the potential of a business, simply estimate how many pairs of shoes each family has. In general, almost every person is a potential client of the workshop. These services are not limited to low-income people. A wealthy person will also prefer to save money and repair expensive shoes, rather than just buy a new one. 

2. Next, study the conditions in which you plan to work. Analyze the market, the level of competition, compare prices in a niche to establish your own, consider possible options for the location of the workshop.

Pros and cons of a shoe shop

ADVANTAGESDISADVANTAGES
minimum investment – you can start with a capital of 150 thousand rublesstability in any economic conditionsconstant demand for workshop servicesquick paybackrunning such a business is quite simple and can be handled alonesmall incomes;high level of competition;weak prospects for business expansion;

3. It is worth considering the nuance of the business – some seasonality of orders. Although it is believed that shoe repair is off-season, in practice the workshop receives the most orders in the off-season, when people switch from one type of shoe to another. Another feature is that business risks are associated with subjective factors: poor quality of service, wrong choice of location. 

4. Assess the possibilities. As a rule, such workshops are opened by people with experience. For high-quality execution of orders, you must have certain skills. It depends on how much you can earn. But even if you have no experience, then getting the necessary skills is not difficult. 

5. Write a business plan. Even such a simple business planning will not hurt. You need to draw up an algorithm of organizational actions, calculate the income and expenses of the project, and consider measures to prevent risks. After that, you can proceed to the implementation of the project.

Step 2. Registration 

For a shoe workshop, it will be enough to issue an individual entrepreneur, indicating the following OKVED code: 95.23 Repair of shoes and other leather products. 

As a taxation system, you can choose the simplified tax system or UTII in order to submit a minimum of documentation and pay a minimum of taxes. But keep in mind that the conditions for UTII in the regions are different, so you should clarify whether this option is available for your business. 

If you intend to hire employees, then you need to register with the Pension Fund and the Social Insurance Fund as an employer in order to transfer insurance premiums for your employees. The main package of documents includes permits from the SES and the fire inspectorate. You will not need any more licenses and certifications. 

Also keep in mind that in some regions of the country in 2020, you can register as self-employed and pay tax on professional income, which is much easier and somewhat more profitable than maintaining an IP. You can read more about self-employment.

Step 3. Location and space for the workshop

The main success factor in the work of the workshop is the correct location. This business is recommended to be placed in crowded places, excluding the proximity to competitors.

The most reliable option is places with high foot traffic. It will be good if the workshop was on the way of movement of potential customers from work to work. Almost all customers are simply looking for the nearest workshop. At the same time, the “brand” does not affect their choice in any way – people prefer to repair shoes in a workshop in the neighborhood, and not spend time looking for an elite workshop. So newcomers can successfully enter a competitive market and quickly find their client. 

Suitable workshop locations:

  • sleeping areas , where it is guaranteed to cover several categories of the target audience. The main thing is to check that there are no competitors nearby;
  • areas near public transport stops , underground passages, shops. 
  • premises near large markets , public institutions;
  • area in a shopping center .  

As for the format itself, the most popular option is a small kiosk. You can also stay in the basement or on the first floor of the building. For a shoe workshop, an area of ​​​​5-10 sq.m is enough. The main thing is that the master was comfortable working. Equipment and tools are quite compact and can easily fit in a small area. Rent of premises is from 3 to 15 thousand rubles, depending on the city and location. You can also purchase a small kiosk – this will require about 100 thousand rubles. 

Step 4 Equipment 

For high-quality and prompt service in the workshop, special equipment is needed. The list includes: a grinder, a hammer, pliers, an awl and a shoe rasp, a set of tools for manually sewing shoes, a sewing machine, a shoe stapler, a shoe paw, an electric stove for heating glue and other small tools. You will also need a minimum set of furniture: a desk, a chair, shelves for storing shoes and tools. The total cost of equipment will be about 120 thousand rubles. 

Step 5 Consumables

In addition to equipment, consumables must be purchased for the workshop. The main ones are: heels, linings, glue, leather, heels, paint, accessories. From the purchase price directly depends on the quality, but, on average, you will have to spend 15 thousand rubles. 

Trick: to save money, you can buy consumables in the off-season. But it is not recommended to make the first purchases in large quantities. At first, it is better to buy a little of everything, but in practice to determine how much certain materials are consumed. In the future, you can adjust purchases in accordance with the level of demand for certain works. 

To summarize: for the complete equipment of a shoe workshop, you will need capital in the amount of 120-140 thousand rubles. 

Step 6. The nuances of opening a shoe shop

To succeed in your business, be sure to consider the important nuances of the business. 

First, consider the schedule of the workshop. It is better to open from 8 in the morning so that people going to work can bring in shoes for repairs. You need to close at 19-20 hours so that customers can pick up their shoes when returning home. It also makes sense to work on Saturdays, at least half a day. Many people solve household issues on the weekends. You can work on Saturdays and Sundays, making Monday a day off. 

Secondly, it is important to solve the issue of pricing. The fact is that even with a fixed price list, it is impossible to accurately plan the income of the workshop. The client pays after the fact, and the price may vary depending on the complexity of working with a specific order. 

The average check of a shoe shop is 250 rubles. At the same time, the cost of the service is minimal, and the basis of the cost is the work of the master. The margin for this type of service is 200-300%, and for particularly complex orders it can be higher. 

Step 7. Personnel

It is quite possible to work alone in the workshop. Especially in the first months, when the number of orders will be minimal. In the future, with successful development, you can hire an assistant or a shift. 

Is it profitable to hire a separate employee? There is no single answer, because the cases may be different. If you have an influx of customers and you can not cope with orders, then it is better to hire an assistant. If you do not plan to work in the workshop yourself, then you will have to look for a specialist. Otherwise, you can do it yourself and save money. Experienced professionals advise not to rush to hire staff. To master the skills of a shoemaker, you can take training or get a job and work with experienced colleagues. 

Step 8. Advertising

Shoe shop does not require expensive advertising. All that is bet on is a favorable location and outdoor advertising. To attract attention, use signs, streamers, portable pillars, etc. Place ads in elevators, on Avito, on bulletin boards at the entrance and at bus stops. Specify the address of the workshop in city directories, on local portals, forums, etc.

To increase the number of orders, you can agree on cooperation with representatives of related services. For example, you can open an order acceptance point based on an atelier or a dry cleaner. Intermediaries will receive a percentage of orders, and new customers will come to you.

Another way to get additional orders is to offer related services to customers: you can repair bags, replace zippers and buttons, restore leather goods, etc. But the most effective advertising is word of mouth. It will work for you if you fulfill orders quickly and efficiently. 

To reach a younger audience, consider using social media separately: you can start a mini-blog about your work, talking about its nuances.

Step 9. Income and profitability

  • Revenue. The most popular question for any business: how much can you earn? The profit of a shoe shop depends on the number of customers. The average check is small, so the master will have to complete a lot of orders per day in order to earn. A point located in a favorable location can serve 20-30 customers per day. With an average order price of 250 rubles, the daily revenue will be 5 thousand rubles. But in reality, the figures will be more modest. Let’s slightly adjust expectations: revenue is 3 thousand rubles a day. With a 6-day work schedule for a month, you can get revenue in the amount of 78 thousand rubles.
  • Net profit. To determine the net profit, we calculate the costs: The cost of materials – 15 thousand rubles; rent of premises – 8 thousand rubles; tax – 5 thousand rubles. Thus, our net profit for the month is: 78,000 – 28,000 = 50,000 rubles per month. You can expect such a profit in about three months of work. Advertising should give its results, and people should learn about your workshop. Your first customers will be passers-by who accidentally see the workshop. 
  • Payback. Next, we calculate the payback period for the initial investment. To open a shoe shop, you will need capital in the amount of 150 thousand rubles. You will spend this amount on the purchase of equipment and supplies, business registration, advertising, and rental of premises. With such indicators, the payback period will be: 150,000 / 50,000 = 3. That is, it will take 3-6 months to recoup the invested funds. This will be a good result.
  • Return on investment: 50,000 / 150,000 = 33.3%. On average, the profitability of small household services is 20-30%. 

Step 10. Risks

When planning, it is required to identify the risks of the project that may be encountered. If you know them in advance, then take action and secure your business. 

As mentioned earlier, workshop risks are mostly related to internal factors: 

  • High level of competition. Many people work in this niche. Competitors will take away not only orders from you, but also profitable places. The more saturated the market, the less likely it is to take a profitable location. Most likely, you will have to choose from what is, while taking into account the remoteness from competitors. And you can lure customers if you create competitive advantages: offer favorable prices, fast service and do your job efficiently.  
  • Mistakes in choosing a location. An unsuccessful location can ruin the whole thing – neither advertising nor quality service will help. Therefore, conduct a preliminary analysis of each potential point. Define your target audience and where it is concentrated. Using online maps, check the locations of competitors in your city and select areas where there are fewer of them. 

In custody

A shoe repair shop is a business for those who want to start their own business with minimal investment. The profit from it is small, but stable. There will always be a demand for such services. The workshop will be able to bring 50 thousand rubles of net profit. For a business that requires 150 thousand rubles at the start, this is a good indicator.

Leave a Comment