How Much Does it Cost to Start a Skateshop?
To ensure your business is a sound investment, it’s crucial that you conduct market research. Doing this will enable you to identify customer segments and select products which best fulfill their needs and expectations.
As part of your business plan, opening a separate bank account for your company finances makes filing taxes and monitoring its profitability simpler.
- Location
Many skate shop owners emphasize the community aspect of their business by partnering with nearby skate parks, schools and music venues to increase revenue and draw in potential customers – but this approach can also add extra strain and cause additional stress on shop owners.
Intelligent entrepreneurs establish their skate shop identity from day one, branding their passion with an impressive logo. Looka is an experienced digital design marketplace offering custom logos for less than $100 to help make this dream a reality. Find an effective business phone number featuring vanity digits to create an inviting atmosphere for every customer who calls your shop, and register it with a domain registrar for under $20 annually. Create a financial forecast to ascertain if your startup can make money, then track actual results against predictions. This will enable you to secure funding from financial partners if necessary and gain insight into projected cash flow and necessary initial investments. Depending on the complexity of your forecasts, professional advice from an experienced business advisor may also be beneficial.
- Equipment
Rent for a typical retail space that suits skateboarding culture can run $15-30 per square foot annually depending on location and market rates; larger spaces will likely incur greater costs.
Initial costs associated with purchasing shelving and display racks can exceed $2,000; durable flooring installation could incur another $1,000 to $5,000 expenditure in a large retail space; lighting could add another $1,000-$3,000 cost if there’s heavy traffic through your space.
An appealing logo transforms an amateur startup into a professional brand recognized in boardwalks and parking lots across their industry. Expert digital design marketplaces charge under $100 for creating unique marks that reflect both product offerings and culture of any given organization.
Forming an LLC offers skate shop owners several advantages in terms of protecting personal assets while mitigating business risk, according to legal experts for small businesses. Your choice of entity is also impactful as it impacts tax requirements and regulations as well as future investment capital sources and how decisions are made within the business.
- Insurance
As part of opening a skate shop, retail insurance is absolutely crucial. Not only should you carry general liability coverage in case customers suffer injuries in your store, but product liability protection for equipment failure is likely necessary as well as commercial property policies covering your items in case of fire or natural disasters.
Other startup costs for your store could include hiring an accountant to assist in bookkeeping, tax preparation and financial analysis. Accounting software like QuickBooks will enable you to easily track expenses, sales data and customer information in one dashboard for accurate visibility into its profitability.
Legal costs to incorporate your business are an additional expense, according to small business legal experts. Establishing a limited liability corporation offers key advantages for skate retail owners, such as protecting personal assets from business risks.
- Inventory
Skateboard shop owners frequently sponsor local skaters to build brand recognition and increase brand visibility, providing team shirts and products. In return, these skaters show their skills through video clips and skating events; such activities may attract novices looking for advice or products.
Budget for office supplies like pens and paper as well as a point of sale (POS) system in addition to stocking your shop with accessories and skateboarding equipment. Also include taxes and fees associated with registration, licensing and permits in your budget.
To lower startup costs, start small and negotiate flexible lease agreements for storefront rentals; additionally, focus on cost-efficient marketing strategies like social media and community involvement that reduce advertising and promotion expenses.
- Marketing
Marketing costs associated with starting a skate shop include flyers, posters and event sponsorships ranging from $200-$1,500. In addition, investing in an inventory and payment management system such as a point of sale (POS) system may streamline inventory and payment processes while costing as little as $500 can make your shop stand out from its competition.
Additionally, you must factor in office supplies, credit card processing fees and shipping and delivery expenses in your budget. Furthermore, if offering skateboard repair or customization services is something you want to offer, additional tools and equipment will need to be purchased as well.
Last but not least, it is crucial to consider any associated costs with employing employees. You will incur taxes, workers’ compensation insurance and unemployment insurance payments in addition to wages and benefits; additionally you should ensure your staff members possess both passion for skateboarding as well as customer service knowledge that enables them to sell products and provide customer service; networking events can help build your customer and partner networks as well.