Do you love sneakers, and have the full knowledge of all the limited editions? If yes, then the sneaker reselling business is going to be a blast for you with all the knowledge you have.
But apart from knowledge, the sneaker reselling business needs careful planning and strategies on paper to keep your business going. Yes, we know that writing a business plan is not a job for everyone.
Therefore, here we present our sneaker reselling business plan template with various examples, so you can write yours smoothly and get the business started soon.
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How to Write a Sneaker Reselling Business Plan?
Writing a sneaker reselling business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:
1. Executive Summary
An executive summary is the first section of the business plan, which reflects the whole sneaker reselling business plan. It provides the general idea of the entire plan, so it is generally written in the last after knowing the full plan.
Here are a few key components to include in your executive summary:
- A brief introduction to your business
- Market Opportunity
- Products and services
- Marketing and sales strategies
- Financial highlights
- Call to action
Note that your audience might only read the executive summary and make their decision. So, make sure your summary is clear, concise, easy to understand, and jargon-free.
2. Business Overview
The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:
Describe what kind of sneaker reselling company you run and the name of it. You may specialize in one of the following sneaker reselling businesses:
- Online platforms
- Brick-and-mortar stores
- Bulk reselling
- Social media-based reselling
Describe the legal structure of your sneaker reselling business, whether it is a sole proprietorship, LLC, partnership, or others. Also, explain where your business is located and why you selected the place.
Here is an example of the business description:
List the names of your sneaker reselling business’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
If you have been in the sneaker reselling business for quite the past, then briefly describe your business history, like—when it was founded, how it evolved over time, etc.
Additionally, If you have received any awards or recognition for excellent work, describe them.
It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.
This section should provide a thorough understanding of your business, its history, and its plans. Keep this section engaging, precise, and to the point.
3. Market Analysis
The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.
Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers. For example,
Market size and growth potential
Describe your market size, growth potential, and whether you will target a niche or broader market.
For instance, the complete sneaker resale market is projected to surpass the $11.5 billion milestone by the end of 2023.
Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your sneaker reselling business from them. Point out how you have a competitive edge in the market.
Analyze emerging trends in the industry, such as changes in customer behavior or preferences. Explain how your business will cope with all the trends.
For instance, digital platforms are ruling the sales of the sneaker reselling market, then mention how will you go with the trend.
List regulations and licensing requirements that may affect your sneaker reselling business, such as trademark & intellectual property laws, consumer protection laws, online platform policies, authentication regulations, etc.
4. Products And Services
The product and services section should describe the specific services and products offered to customers. To write this section should include the following:
Describe the products and services you provide
The products and services a sneaker reselling business provides differ due to their vision, offerings, location, and various other factors. But here is a general list of products and services a sneaker reselling business might provide:
- Limited edition
- Retro and vintage models
- Athlete signature shoes
- Custom or artist collaboration
Services & facilities
- Authentication services
- Online platform
- Customer support
- Secure transactions
- Membership programs
This section should explain how you maintain quality standards and consistently provide the highest quality service.
A sneaker reselling business should provide quality authentication & verification, condition assessment, quality grading system, and other such services as a quality measure.
In short, this section of your sneaker reselling plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.
5. Sales And Marketing Strategies
Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:
Unique Selling Proposition (USP)
Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.
For example, the unique selling proposition for a sneaker reselling business might be the quality of the sneakers, extra discounts, curated selection, transparency in communication, etc.
Outline your pricing strategy to effectively position your products and services competitively in the local market. Crafting a strategic approach to pricing is crucial for achieving a competitive edge.
Offering your products or services at compelling price points not only expands your market reach but also creates a buzz, particularly beneficial for new businesses entering the industry.
Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, email marketing, content marketing, and print marketing.
Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include direct sales calls, partnering with other businesses, offering referral programs, etc.
Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts on annual membership, personalized service, etc. For example,
Overall, this section of your sneaker reselling business plan should focus on customer acquisition and retention.
Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your sneaker reselling business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.
6. Operations Plan
The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:
Staffing & Training
Mention your business’s staffing requirements, including the number of sales associates or authenticators needed. Include their qualifications, the training required, and the duties they will perform.
Outline the processes and procedures you will use to run your sneaker reselling business. Your operational processes may include sourcing sneakers, authentication, inventory management, shipping & logistics, etc. For example,
Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.
7. Management Team
The management team section provides an overview of your sneaker reselling business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.
Mention the founders and CEO of your sneaker reselling business, and describe their roles and responsibilities in successfully running the business. For example,
Introduce your management and key members of your team, and explain their roles and responsibilities.
It should include, key executives, senior management, and other managers (e.g. operations manager, customer services manager.) involved in the sneaker reselling business operations, including their education, professional background, and any relevant experience in the industry.
Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
Mentioning advisors or consultants in your business plans adds credibility to your business idea.
So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.
This section should describe the key personnel for your sneaker reselling business, highlighting how you have the perfect team to succeed.
8. Financial Plan
Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:
Profit & loss statement
Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
Cash flow statement
The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
Create a projected balance sheet documenting your sneaker reselling business’s assets, liabilities, and equity.
Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.
This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
Calculate costs associated with starting a sneaker reselling business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.
Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.
The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.
- Add a table of contents for the appendix section to help readers easily find specific information or sections.
- In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more.
These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
- Provide data from market research, including stats about the sneaker reselling industry, user demographics, and industry trends.
- Include any legal documents such as permits, licenses, and contracts.
- Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.
Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.
Remember, the appendix section of your sneaker reselling business plan should only include relevant and important information supporting your plan’s main content.
This sample sneaker reselling business plan will provide an idea for writing a successful sneaker reselling plan, including all the essential components of your business.
After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our sneaker reselling business plan pdf.