How to Start a Shoe Business in South Africa
Starting a shoe selling business in South Africa is a profitable venture. Many entrepreneurs have ventured into this business, but there are still more opportunities since the demand for shoes is high. Many people want to keep up with shoe fashion. When starting a shoe business you need to decide whether you want to start a wholesale or a retail shoe business. This is how to start a shoe selling business in South Africa.
Research the Market
You need to ensure that you have a market where you will be selling your shoes. Research if there is a ready market. Also, you need to know what kind of shoes the potential order most. You also need to know where you will be sourcing shoes from.
Look for reliable and affordable suppliers. At this stage, it is also important to come up with a feasibility analysis that will help you know whether the business is worth pursuing or not to prevent business failure.
Also read: How to start Airbnb business in South Africa.
Come up with a Business Name
Look for a brand name for your business that will attract customers in South Africa. Try a unique business name that can easily get recognition. This way, your business will have a competitive advantage. When choosing a business name, look for a name that is easy to pronounce and remember
Write a Shoe Business Plan
A business plan works as a road map to every entrepreneur and helps minimize the risk of failure of the business. A good business plan should have the following:
- Startup capital
- Target customers
- Operation strategy
Identify a Good Business Location
The geographical location of your shoe business is very important because it determines the growth of your business. Look for a business location with high foot traffic like market centers, business centers and along main roads.
The shoe business is best suited in urban areas. You can start a shoe selling business in any of these South African towns:
- Cape Town
- Port Elizabeth
These cities have promising returns for any entrepreneur who wants to start a business.
Obtain Business Permits
You must ensure that you are operating a legal business. As such, you need to register your business and get the necessary documents to start a shoe business in South Africa. Register your shoe-selling business with the Companies and Intellectual Property Commission (CIPC). You also need to register your shoe business with South African Revenue Services (SARS) for tax payments.
Read also: How to start a cosmetics business in South Africa.
Cost of Starting a Shoe Business in South Africa
The cost of starting a shoe business in South Africa depends on your business size and business location. It is expensive to start a shoe business downtown compared to rural areas. Most of your startup capital will go into buying shoes. On average, you will need around R80,000 to R200,000 to set up a small shoe business in South Africa.
Is Shoe Business Profitable in South Africa?
The shoe business is profitable in South Africa because of the high demand for shoes. The shoe business in South Africa has a 100% return on investment. Shoe business has provided employment opportunities to many people in South Africa and also helped the government raise revenue through taxation.
Summary of How to Start Shoe business in South Africa
To set up a successful shoe-selling business in South Africa, you first need to understand the market. Get to know which are the fast-moving shoes and stock them in large numbers. Then, you need to aggressively market your business. Also, strive to source your shoes from cheap and most reliable suppliers. Finally, ensure that you sell high-quality shoes.