Starting a Sneaker Business at Age 17: A Comprehensive Guide

In today's fashion landscape, footwear has evolved beyond mere practicality. Shoes are now worn as status symbols and fashion accessories, popular among both genders. With numerous occasions demanding specific footwear, the demand for various types of footwear continues to grow. This makes starting a shoe business, particularly a sneaker business, an enticing proposition for many, including those as young as 17.

Things You Need to Keep in Mind Before Starting a Footwear Business

Online or Offline Shoe Business?

Online Business: The primary advantage of an online shoe business is the absence of physical infrastructure costs such as rental, electricity, and maintenance. You can conduct your business from your home with just a website and effective social media marketing. Ensure your website is user-friendly and aesthetically pleasing.

Offline Business: Operating an offline shoe business requires a physical store. For a typical sneaker store, a shop size of 150 to 200 square feet is recommended. The location should be strategically chosen, ideally in a busy area such as near a supermarket or an IT park.

Define Your Target Audience

Understanding your target audience is crucial. As a 17-year-old startup, you need to focus on a specific niche to attract and retain customers. Consider age, gender, and income levels while defining your audience. By narrowing down your focus, you can tailor your products and marketing efforts more effectively.

Source of Funding

Various funding options are available, including business loans, government grants, and personal savings. Evaluate your financial health to determine the best source of funding. Ensure you have a solid business plan that aligns with your chosen funding strategy.

Identify Your Competitors

Carry out thorough market research to identify your competitors and understand their business models. A footwear market is already saturated with both domestic and international brands. Determine who your primary competitors are based on the price segment you plan to cater to. A local retail store would be a direct competitor if you aim for a price point that is within reach of the lower-income group. Conversely, if you target the high-end market, you would face stiff competition from established brands.

Conduct SWOT Analysis

Perform a SWOT analysis to evaluate the strengths, weaknesses, opportunities, and threats in the market. This will help you make informed decisions and identify areas where your business can thrive.

Register Your Business in India

After preparing your business plan and securing funding, the next step is to register your business. Here are the key legal requirements:

Shop Act-License

This is a vital legal requirement to sell footwear. Obtain this license (also known as Ghumasta or Gumasta) from your state's municipal corporation. The process involves filling out the relevant form and providing necessary documents such as identity proof, address proof, and a shop picture.

Get a GST Number

To obtain a GST number, you need to show a Shop Act license. You can do this through a Chartered Accountant or via the official GST portal. Follow these steps:

Fill in the form: Visit the GST portal, click on 'new registration,' and complete the required information. Ensure the location column includes the state where you plan to do business. Verify OTP: After submission, verify the OTP sent to your mobile number or email. Generate TRN: A temporary reference number (TRN) will be generated. Copy and paste this into your application form. Submit the Application: Fill the form, verify your e-signature, and submit your application.

Open a Current Account

A business current account is an essential tool for managing business transactions. Unlike savings accounts, business accounts do not offer interest. Opening a current account with a bank allows for unlimited transactions per day and provides online banking and overdraft facilities.

Marketing Techniques

Once your business is legally registered, focus on effective marketing. Utilize digital marketing avenues such as social media platforms like Instagram, Facebook, and Pinterest. Create a dedicated page for your products and collaborate with micro-influencers to build brand awareness.

Start with a solid business strategy, define your target audience, and choose the right funding source. While starting a business is manageable, building a successful one requires a robust plan and strategic thinking to compete in a highly competitive market.