Business shoe store plan on franchising

What information should contain a business plan for the shoe store franchise system

Summary of the business plan for the store opening shoe store franchise system

This project - a plan for the creation of private enterprises for organizing business plan shoe store franchise system for 24 of the month. First of all, list the key points of the process of creating a business plan shoe store run on the system franchayzinga.V primarily arises Project Idea, and objectives of the project, such as:

1. Creation of an enterprise with high level of profitability.
2. Receiving a profit legal way, indicating the legal address, Head of passport data and project founder, Employee Information.
3. The satisfaction of consumer demand for the implementation of filling a niche high-quality footwear for men and women.
4. Providing the opportunity to organize a shoe store franchise and cover consumer demand for all seasons shoes high quality at an attractive price for consumers.
5. Finding and conclusion of contracts with investors.
6. Project cost: 5 700 000 rubles.
7. financing of the project: By obtaining a commercial loan in the amount of 5 700 000 rubles.
8. To implement the project the company needs to take out a loan in the amount of RUR 24 settlement months discount rate 17,5%.
9. payback period: 2 of the year.
10. the investor's income will be 388 360 rubles.
11. Payment of interest on the loan starting from the first month of this project.
12. Repayment begins with the first month of the project. This fact is entered in this business plan to facilitate understanding of the structure for calculating the flow regulation discounted cash flow and. Repayment begins with the first month of the project. This fact is entered in this business plan to facilitate understanding of the structure for calculating the flow regulation discounted cash flow and.
13. Implicit interest rate on borrowings 14 %. Should be considered, that at present banks are reviewing the rate of interest for investment projects downward.
14. The total amount of accrued interest will be 388 360 rubles.
15. The payback period from the beginning of the project 2 of the month.
16. Payback period with discounting 1 year.
17. The overall economic benefits of the project for the life cycle of a conditional 144 358 957 rub.

The urgency of the opening of business on a shoe store franchise

Today, the majority of niches, who make a fashion-reteyle, experiencing a period of "post-turbulence". It means, that economic and consumer strength gradually subside, and some segments of the target audience can afford to buy high-quality fashionable thing under certain conditions, and the coincidence of a number of factors. It is also worth noting, that the Russian market is not immune to peak periods of uncontrolled movements of the market. According Rosstata, Footwear production levels rose by one percent, respectively, he was at the end of 2018 of the year 74,7 million pairs. Production of hosiery declined by 7,9%, to 135 000 000 steam.

Price indices for selected groups of non-food goods such as at the period end, in percents

	The previous month			June 2018. to		/ floor- godie 2018g. to the I half of 2017.	reference
	April	May	June	December 2017g.	June 2017g.		June 2017g. December 2016.
fabrics	100,1	100,2	100,1	100,9	102,3	102,8	102,4
Clothes and underwear	100,1	100,1	100,0	100,5	102,5	102,7	101,1
Knitwear	100,2	100,1	100,0	100,5	102,7	102,9	101,1
Footwear	100,2	100,1	99,9	100,4	102,8	103,2	101,6

stages of the project

stages of the project	Test conditions	Deadlines
Home project		1-2 of the year
The conclusion of the investment agreement	1 project of the month	1-30 banking days
Getting credit	Having a proper set of documents	30 calendar days
Adding to the state register, registration with the administrative and tax authorities	The conclusion of the investment agreement	1 -30 calendar days
Selection of locations and documentation	preliminary work	30 calendar days
Buying equipment	The conclusion of the investment agreement	1-30 calendar days
Equipment installation	Obtaining investment funds	1 -30 calendar days
recruitment	production activity	1 -30 calendar days
Training	The end stage of the production process	1 -30 calendar days
Conducting marketing company	360 calendar days	1-360 calendar days
End of project		12 – 24 of the month

on the video: How to open a business franchise

algorithms action, prescribed in the business plan shoe store

The business plan of the store footwear registered the following actions to start a business algorithms:

1. The methods and techniques of analysis target audience, drawing up a portrait of the ideal customer, its solvency ratio.
2. Business Registration in the state regulatory and tax authorities.
3. Hiring qualified employees, able to fulfill customer wishes and be ready to work. Another item of expenditure considered hiring employees. Specialists will take the vacant positions on a competitive basis, As employees of the total, maintenance and temporary nature with a decent competitive pay. Nominations applicants for the position will be reviewed within 30 calendar days.
4. services, now rendered.

Shoe franchise is gaining popularity in the world. Create a business on a franchise system under the power of any, important to have a great desire to develop this segment of the market and sufficient finance for starting a business. Franchise, It is the most convenient one for opening store shoes. Under the terms of the contract, franchisor provides streamlined trading system, which will provide a high level of sales. The world is full of different franchise brands and catalogs them, that describe all kinds of franchises producing shoes and their main advantages.

on the video: 500 000 on shoes for a week

The main advantages of the franchise:

• No additional investments for the promotion of the brand, use of corporate identity;
• The franchise package includes advertising, promotions and exclusive product promotion;
• Professional advice;
• Training and assistance in setting up commercial space.

on the video: How to open a business in the orthopedic shoes

Documentation on trade in footwear shop

Must be available on realized commodity certificates. This document will confirm the quality of the shoes, as well as its safety. Certificates are issued mandatory for shoes made of leather and rubber, both designed for kids, and specialized.

1. GOST R 53917-2010 Footwear. marking
2. orthopedic footwear
3. Basic Documentation for the opening activities
4. GUEST 26167-2005 casual footwear. General specifications
5. GOST R 57575-2017 Footwear.
6. Sizing. Terms and Definitions
7. Federal Law of 08.02.1998 N 14-FZ Ob OOO
8. Federal Law of 27.12.2002 N 184-FZ (row. from 29.07.2017
9. On technical regulation

The declaration of conformity is issued for the following types of footwear

• Rubber Shoes.
• Footwear for sport.
• Chrome and yuft footwear.
• Footwear uppers, made of a textile or felt, made of synthetic leather. The exception is the shoes, manufactured for use in the army.
• Shoes for everyday use made of artificial leather.

A must for the study is the law on protection of consumer rights (http://www.consultant.ru/document/cons_doc_LAW_305/) and consumer goods trading rules (http://www.consultant.ru/document/cons_doc_LAW_18973/)

DOST 5394-89 Shoes of Russian leather. General specifications

pricing

Price shop policy will largely depend on the target audience segment, the level of its income and needs. One of the most risky option is considered to be the opening of the store expensive branded shoes for wealthy buyers. The size of the target audience is significantly reduced, but due to the high price of quality products can be obtained higher profits at the expense of margins. Sometimes novice businessmen start with a small outlet in the market halls - it can significantly save on rent and utility bills. In this way, you can set the price, more attractive to buyers, in today's crisis and decline in purchasing power of the population levels.

For additional income, It can be included in the range of shoe accessories store - laces, means for footwear, house shoes, And so on. Some businessmen also provide repair services of shoes, but this would require additional code NACE and notification to the tax and regulatory bodies on business.

Consumer price indices in the group classifier Individual Consumption by Purpose (statuettes) at the end of the period, in percents

	BUT’ the previous month '			June 2018. to		/floor- godie 2018g. to the I half of 2017.	reference
	April	May	June	December 2017g.	June 2017g.		June 2017g. December 2016g.
Clothing and Shoes	100.1	100.1	100.0	100.4	102,4	102.6	101.1
clothes	100,1	100,1	100,0	100,4	102,3	102,5	101,0
footwear	100,2	100,1	99,9	100,4	102,8	103,2	101,6

How to choose and buy a franchise shoe store

Before, how to get to choose and buy a franchise of footwear trade, you need to spend a little SWOT-analysis activities of direct and direct competitors in the region, explore the fullness of their range of outlets and understand the basic methods of influence on the client. This information is required to be included in the business plan, that you will provide to its future potential partners- franchisors.

Advantages and disadvantages of working for the franchise

Benefits

• Ready business plan of work, verified with working business model and debugged business processes.
• All of the above adapted to your city in accordance with the data of marketing research, you must provide the franchisor
• The work carried out under the protection already promoted brand.
• Developed a ready customer base, loyal to the brand.
• Providing consultation mode 24/7.
• customer-centric merchandising.
• Display of goods and logos provide maximum return.
• The franchisor provides assistance and support to the training and selection of personnel
• Relatively easy and fast start of the business - some franchisors promises to get the first revenue after 30-60 days after the start of a representative office.

disadvantages

• Payment of lump-sum payment and royalties, which can sometimes be unduly pessimistic.
• The need to strictly follow the instructions of the franchisor and to avoid deviations from the recommendations of the, prescribed in the concession agreement.

The main risks, avoidable, working under a contract of commercial concession

• First of all, you are already at the start of its business on an equal footing can make a good competition to existing shoe store in the city. competitors, who have tried and tested base of regular customers, and working on the profitable outlets, They will compete with the already well-known brand with the experience accumulated reputation, representative of which you will become the official conditions.
• Secondly, you will be fully protected against counterfeiting and product quality is not good. You can work with an already proven database of suppliers, which will timely deliver seasonal topical goods at competitive prices for you with all accompanying documents and quality certificates.
• Thirdly, the franchisor strictly monitors compliance with the terms of the concession agreement, one of which is the hiring of qualified personnel. In this way, You will not only be protected from theft, but you can increase the level of service in the store, what today's buyer pays close attention to and as a result, significantly increase the income received by the sales office.
• Fourth, your business will be less affected by the economic situation. franchiser, as a business owner, monitors all key changes in the Russian economy and in the world and responds to demand fluctuations, offers and pricing. In this way, entire range and loyalty programs, designed for customers, in any case will contribute to the ability to buy something, what the client needs.
• Fifthly, you are protected from rising prices for the logistics of goods and the formation of the assortment of shoe stores under the franchise. Major suppliers will work with your representative office on exactly the same favorable terms., as with head office.

note! before, how to choose and buy a shoe store franchise, it is necessary to determine the format of work, which shows the most profitable return in your city and region.

Why customers choose most often multi-brand shoe store format

1. The decline in the standard of living of citizens of the Russian Federation from year to year has taught people to save, and the boundaries of perception of quality have become more blurred.
2. Today, many customers trust online shopping., without preliminary fitting - such stores provide unobtrusive quality service and reasonable prices due to the opportunity to save on renting premises and paying certain types of taxes.
3. Over time, new brands appear and the level of trust in them grows.. At the stage of brand formation, the manufacturer puts a lower selling price on the goods.
4. Import substitution policy allowed to increase retail indicators.
5. A multi-brand shoe store allows you to choose shoes from segments
6. Most often, the consumer chooses a multi-brand store, it is “medium plus” and “premium” in the regions.
7. This format significantly reduces the expenses of the businessman himself and allows you to better form an extended offer for representatives of different categories of the target audience, who have different functional and style requests.

Determination of the basic needs of the immediate target audience

1. Buy a product cheaper, than usual.
2. From this we can conclude, that customers of shoe stores will pay attention to new, not yet untwisted brands and will choose a discount season, sales and promotional offers.
3. The share of skepticism about the choice of goods has increased. Modern customer wants to know, how long will a pair of purchased shoes last, not requiring repair and warranty service for active use.
4. Buyers often use product review services and study offers from different sellers, comparing prices.
5. The target audience today is less susceptible to the impulse to make a sudden purchase - usually the list of necessary acquisitions is compiled in advance, based on the budget and financial capabilities of the family. Categorically, customers today do not accept purchases for future use and refuse imposed acquisitions.

What should be in your presence at the signing of the concession contract

1. room, which is suitable for all SES standards for opening a non-food store (own or leased).
2. Financial Opportunity - Own, investor or credit funds.
3. Experience selling non-food items, work in fashion retail.
4. Willingness to meet standards, established by the franchisor and follow the terms of the concession agreement.

What is NACE specify when the business registration at the opening of the shop of shoes under a concession agreement

The code that will be needed when registering activities – 47.721 –”Trade in shoes and leather goods in specialized stores”, namely, P. 47.72.1, responsible for the retail sale of shoes. This code is not suitable for organizing sales of special sports shoes (cm. at 47.64 - Retail sale of sports equipment and sporting goods in specialized stores).

Production of selected skin and articles of

	June 2018g.	AT % to		1 floor- years 2018g. at % to I полу­годию 2017g.
		June 2017g.	have 2018g.
Suede leather, million dm2	29,2	104,6	124,2	96,5
Travel Suitcases, women's bags and other similar products made of genuine leather, skin parts, textile, travel sets, designed to maintain personal hygiene, sewing or for cleaning clothes or shoes, million rubles	294	65,6	99,9	66,9
Footwear, million pairs	10,1	97,9	104,0	102,1
from her: waterproof shoes with sole and rubber or plastic upper, except for shoes with a protective metal toe cap	1,5	93,4	91,6	96,7
shoes with soles and upper made of rubber or plastic, except waterproof or athletic shoes, thousand pairs	914	45,0	58,2	84,7
shoes with textile upper, except sports shoes	3,5	122,4	135,2	108,7
protective shoes and other, not included in other groups, thousand pairs	748	113,8	96,0	120,3

 

Stages of opening a store on the franchise system

The most acceptable form for organizing an enterprise – individual entrepreneur. Accounting, to reduce costs, you can conduct in person or hire special accounting firms.

Equipment

The franchise agreement obliges to arrange all the equipment in a single brand style (furniture, showcases, racking, signage). Installation of equipment is carried out by a franchise company. The shoe store can be freestanding or located on the territory of the shopping center, area in 100 m².

Costs at the initial stage of opening a shoe store

Naming of expenditures	Amount in rubles
Salon Design	70 000
Production and installation of commercial equipment	1 000 000
repairs	500 000
Interior lighting	100 000
Total cost	1 670 000

on the video: Franchise Chain Store “Black Star Wear”. Case study UDS Game

Staff

Shop selling shoes and related products, area in 100 square meters needs 4 prodavacah: 1 older, responsible for the hall and 3 sales assistant. Manager is also required, whose responsibilities include ordering goods, accounting and acceptance, sales control and customer demand analysis.

Staff costs

Position	amount	Salary rub.	Total rub.
Manager	1	30 000	30 000
Oldest salesman	1	25 000	25 000
Shop assistant	3	20 000	60 000
in total	4		115 000

Questions, arising in the process, as well as administrative problems are solved by the director.

The range of shops

A shoe store is usually designed for customers., middle and high income, most of the goods are presented for the female population, but men's collection not an exception.

The assortment of the store includes the following headings:

• shoes;
• loafers;
• slippers;
• ballet flats;
• sneakers;
• sneakers;
• women and men bags;
• accessories for ladies (brooches, bracelets, hairpins, rings, scarves, платки, stoles, hats) etc.

on the video: How to choose and buy a franchise

Financial part

item of expenditure

In addition to the costs of organizing staff, capital expenditures for opening a shoe store are provided, which account for the repair of premises and material investments to create inventory, so that the demand for the goods does not fall due to its absence.

item of expenditure	amount in rubles per year
lease of premises	1 500 000
Repair and construction costs	1 670 000
Shoe purchase	1 800 000
personnel salary	1 380 000
advertisement	100 000
in total	6 450 000

The main taxes paid

Name	base	Period	Rate
Tax on profits	Profit	Month	20%
NDS	added cost of	Month	18%
Property tax	value of property	According to the schedule of payments	2,2 %
Income tax	wages fund	month	13%
Social payments	wages fund	month	34%

project costs (in rubles.)

Name expenditure	cost of
	Qty (PC)	per month	in year	One-time purchase	Total costs per year
lease of a building, room	100	150 000	1 800 000	1 800 000	1 800 000
Buying equipment	10	37 885		454 620,1	454 620,1
Purchase of goods	1	960 000	11 520 000	960 000	960 000
Purchase of computer equipment	1			60 000	60 000
Site, hosting	1			120 000	120 000
Fixed costs of online advertising	12	45 000	540 000	200 000	540 000
Salary	12	435 120	5 221 440		5 221 440
including. taxes	12	139 120	1 669 440		1 669 440
Unexpected expenses				359 460,9	359 460,9
in total:		1 628 005	19 081 440	3 954 081	9 515 521

source of income

Basically, the peak sales of shoe stores account for the release of new collections, and this is a presentation spring-summer and autumn-winter, on this basis, spring and autumn are considered the most profitable seasons.. Below is a table of approximate monthly income for Centro store, whose sales area 100 m² with urban population in 300 000 person.

Sales month	The amount of revenue in rubles
January	1 200 000
February	1 700 000
March	3 300 000
April	2 800 000
May	2 000 000
June	1 700 000
July	1 500 000
August	2 400 000
September	2 600 000
October	3 100 000
November	3 200 000
December	2 700 000
Average monthly revenue	2 570 000

the volume of a plan to provide services to the settlement period

Period	type service name	The volume of production and sales in a month (steam)	price	Revenues from sales (rub.) per month
1-12 monthly investment	Premium Price Shoes	270	15 000-150 000 rubles and above	4050 000-40 500 000
1-12 monthly investment	Shoes of the budget price segment	450	To 10 000 rubles	4 500 000
1-12 monthly investment	accessories	630	from 100 to 5 000 rubles	63 000-3 150 000
14-24 month operation	Premium Price Shoes	300	18 000-180 000 rubles and above	5 400 000-54 000 000
14-24 month operation	Shoes of the budget price segment	490	to 12 000 rubles	5 880 000
14-24 month operation	accessories	690	from 120 to 7 000 rubles	82 800 — 4 830 000