Business Plan
Name: 2manyKicks
Date: August 1st, 2021
Business Adviser: Gavin Clay
-Hayden Bottolfson
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Table Of Contents
Executive Summary….. 4
3.1 Legal Form…….. 5
3.2 Effective Date…… 5
3.3 Mission Statement…. 6
3.4 Company Governance…. 6
3.5 Goals…… 7
3.6 Financial Status……. 8
3.7 Company Location….. 8
4.1 Size and Growth of the Industry.. 8
4.2 Nature of Competition….. 9
4.3 History of the Industry…… 9
4.4 Trends and Strategic Opportunities. 9
5.1 Define Your Target Market….. 10
5.2 Size and Growth Potential of your Target Market….. 10
5.3 Current Patterns and Potential Market…… 10
5.4 Needs and Sensitivities…… 11
6.1 Key Competitors……… 11
6.2 Future Competitors…. 12
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6.3 Barriers for Future Entry……….. 12
7.1 Business Facilities…… 13
7.2 Production Plan….. 14
7.3 Personnel Plan…… 14
7.4 Impact of Technology….. 15
8.1 Key Employees, Board of Directors and Human Resources…. 15
8.2 Identifying, Recruting, and Securing Key Participants…. 16
8.3 Compensation and Incentive Plans..17
9.1 Future Goals….. 18
9.2 Risks and Potential Adverse Results 19
9.3 SWOT Analysis…. 20 & 21
Executive Summary
2manyKicks is a sneaker and clothing reselling business. We strive to make relationships through reselling while also getting more people involved with the sneaker community. 2manyKicks is located in downtown North Hudson in Wisconsin. This is where we want to expand our customers and get big enough to open multiple stores around the Midwest area. This business was truly started in 2021 by owner Hayden Bottolfson. Hayden has been dealing with sneakers for 5 years now and has been selling online for a year now. Hayden always wanted to start reselling but had to figure out his own tricks to get started. A business like this where friendly employees can help would have benefited him a lot. Hayden has always wanted to own his own business especially dealing with sneakers. He will use the tips and tricks he learned from himself and use them to help and inspire others to become a part of the sneaker community. 2manyKicks is all about building relationships and helping others.
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3.1 Legal Form
2manyKicks would be under the legal form of a Limited Liability Company. (LLC) A LLC lets you take advantage of the benefits of both the corporation and partnership business structures. As of right now for the start of the company I would love for it to just be me as the owner but as the business grows I would really hope for a partnership. It would be nice to have that option and to keep an open mind. LLCs protect you from personal liability in most instances, your personal assets won't be at risk in case your company faces bankruptcy or lawsuits. This would make it great to know that there is a back up plan if not everything goes well. Profits and losses can go through to your personal income without facing corporate taxes. Which would be great because the more profit the bigger the company will get. However, members of an LLC are considered self-employed and must pay self-employment tax contributions towards Medicare and Social Security. LLCs can have a limited life in many states. When a member decided to join or leave the company, states may cause the company to have a new membership unless there is already an agreement in place.
3.2 Effective Date
2manyKIcks has already been in the works but opening day will August 1, 2021. Inventory has been starting to grow but the store would open on this date. We would be letting our previous online only customers know about our grand opening to hopefully increase the store sales on the first day. 2manyKIcks would make sure everyone enjoys their time at the store.
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3.3 Mission Statement
2manyKicks mission is to strive to be the go to place to make it easy and fun to find the latest kicks. We hope to make your experience at our shop enjoyable and relaxing while creating a sociable environment and make friendships and connection through our shoes. We want to make all of our prices fair so any average customer can come into the shop and know they are paying the best price around.
3.4 Company Governance
2manyKicks is owned and operated by myself, Hayden Bottolfson, but I would love to have a partnership down the road once the company gets up and going and has a loyal following. 2manyKicks will be under the legal for of Limited LIability Company and will make sure to keep an open mind as time goes on in trying to find a partnership that works best. The company will start off being paid for by myself but will be invested in by people who come in to buy, sell, trade, and comsign their sneakers in which the company all would gain a profit from. To grow the business I will make sure the cast majority of the money coming in circulates throughout the company. 2manykicks staff and myself will make sure to provide the best experience when any person comes and leaves from the shop.
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3.5 Goals
Before Opening First 6 Months
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3.6 Financial Status
2manyKicks will be started with money that was generated by myself and also with a loan received from First National Bank. To establish the company we would start with the inventory that has been bought in bulk and that has been saved up to put in the store for the first month or so as we continue to buy and circulate the money. The company would have to keep circulating this money until enough business transactions and enough profit is made to pay all expenses and after that the money will just keep getting reinvested in the company.
3.7 Company Location
2manyKicks will be established in downtown North Hudson where we will buy a store that will fit our needs. This would be a great place because it is a spot where many small businesses can thrive but not many of them are sneaker stores. It is between 2 larger nearby cities and towns such as River Falls, WI which is growing and Woodbury which is a nice size suburb to the Twin Cities. This Location is also in the middle of North Hudson which is just part of the bigger picture as in Hudson as a whole. This would be a great place to get noticed by any person just walking downtown and give them a chance to realize what they are looking at and makes it easy to access.
4.1 Size and Growth of the Industry
The sneaker industry has been around for a long time but is at its peak right now. With sneakers coming out now worth 10s of thousands of dollars the industry is estimated to be worth around 62.5 billion dollars. Overtime the worth is only expected to go up at around 7 percent a year. ALso reaching around 100 billion dollars 2024. With kids making 4 to 6 figures a year by selling sneakers this industry is at and all-time high and only expected to go up.
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4.2 Nature of Competition
Shoes are essentials and many people love to have a collection of them. Our biggest competitors in the same line of work are Round Two, Cool KIcks, and all of the resellers that do it from their home. We make sure we have the upper hand on these companies because we know they can’t compete with the bond and the creativity we make with our clients and how we run our business. We make it fun for all and make sure they leave satisfied.
4.3 History of the Industry
Sneakers have been a cultural statement since the 80s with Adidas running the game and in the mid 80s a man by the name of MIchael Jordan changed the sneaker world and kids everywhere. Sneakers started selling for hundreds and kids were looking up to him and wanting to be “Like Mike”. 30 years later Jordan has set the stage for sneakers selling in the thousands and is one of the pioneers of creating the mass demand there is for shoes today.
4.4 Trends and Strategic Opportunities
2manyKicks has multiple competitors that have already established a following. 2 manyKicks will make sure to help people and make them feel welcomed into our store. We will have friendly staff making sure to help everyone and also make sure we have enough to supply our younger buyers as well, we want the younger generations to grow and have good relationships with all of the people who come into the shop.
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5.1 Define your Target Market
Them main target audience for 2manyKicks to sell to is the students around River Falls HIgh school. Anyone in general who loves to buy, sell, and trade sneakers would make a great group of people to sell to. This would make it easy for local meetups to sell and buy with the students but if someone needs the item shipped we can easily access the resources to ship as well. Anyone who shares the same hobby as myself and the staff at 2manyKIcks makes a great target market.
5.2 Size and Growth Potential of your Target Market
2manyKicks has a large following from their online and in person sales throughout the River Falls area. We want all people to feel comfortable in our shop and want to expand the reselling community. All people wear shoes and many love to collect so the sneaker hype is at an all time high. Sneaker prices are only going up making this shop a jackpot. We will use our following on social media to grow and expand the shop.
5.3 Current Patterns and Potential Market
The potential market for 2manyKicks is determined by how it expands through the nearby cities. After advertising on social media and expanding through smaller nearby cities like New Richmond, Hudson, and Saint Croix Central we will try to sell throughout the Twin Cities. A big Pattern to follow to reach success in the sneaker community is to know what shoes to invest in especially Jordans, you have to know the type of sneaker and hold on to it because the price will go up. You have to follow the right pattern and buy the right sneakers to sell.
5.4 Needs and Sensitivities
2manyKicks has big plans for sales and how to grow the audience that follows them but there are things we have to understand before trying to jump into this to quick. The big thing we have to understand is that they are comfortable and have already built relationships with other big companies. 2manyKicks need to make sure they provide great and friendly services to all of the people who come into our shop. We also have to make sure we have the best prices around because when they do come in we want them to leave feeling satisfied and that they shopped with the right kind of people.
6.1 Key Competitors
Resellers
These are the biggest competitors 2manyKicks has. This is the type of person who sells sneakers and doing the same thing we are just they aren’t as big. We want to make a relationship with these people because it helps us increase our inventory.
Dicks Sporting Goods
Dicks is a retail store that does sell sneakers as well. With them being a retail store if shoes that many people want release in stores or online at Dicks , we lose customers because they will obviously go for the retail over the resell.
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6.2 Future Competitors
Round Two
Round Two is a sneaker resell shop out of LA that is one of the most popular in the world. When sneakerheads come to California they always go to Round Two. This company has had millions of dollars and sales and is even so popular the owner has created shoe with the famous brand NIke.
6.3 Barriers for Future Entry
The Business die of things in this area can be very hard to get going to for the business to be a hit is a challenge. With resellers and retail stores such as Dicks all around us and the access we have to the Twin Cities makes it a hard way to reel customers in and to make sure we can get them to come back. This is why we always make sure we leave a lasting good first impression.
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7.1 Business Facilities
2manyKicks facilities will be in downtown North Hudson. This would make easily accessible off of the highway and in between Woodbury and River Falls and only 40 minutes from the Twin Cities. This will make t easy for customers to walk in get what they need and keep going where they have to be. Down each side of the store there will be sneakers. Used mens will be at the front of the store on the left with brand new on the right. Looking from the counter. Moving to women's and the kids and then infants. In the back we will have all of the boxes to sneakers and then in between the sneakers and the back we will have the counter. Down the middle will be places to try on sneakers and also some clothing that we decide to sell.
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7.2 Production Plan
2manyKicks will be open from 9am-5pm every weekday and 10am-7pm on Saturdays. As the owner I will not show up less then 1 ½ hour before opening time. This will make sure I can take any orders and missing calls everyday while also giving me the time to look for new deals to add inventory to the store. This time will be used to reinvest back into the company. My sales personal will be to report and clock in at work no later than 30 minutes before opening time to prepare for the day ahead to check the market to see what sneakers are doing well and which are flunking in price. This will then lead to us updating prices to make sure customers get the best deal. We will go the extra mile to make sure everyone has a great experience at 2manyKicks.
7.3 Personnel Plan
The biggest responsibilities of 2manyKicks and the most important jobs are owner, myself, salesmen, and the people who will seek out deals beside myself during the day. The salesmen job would go to someone who is persuasive and can talk easily to other people.The deal seeker would be more of a tech guy and someone who is good at negotiating because he could find people online and work out the best possible deal for the company. This person could also make good relationships with the people we sell to, to help our chances at future deals.
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7.4 Impact of Technology
2manyKicks will use a system in the computer to log all of the sales we make during each day and keep it separated by date. We will include the sneaker, the profit we made on it and the date it was bought and sold. We will also use our technology to locate deals and make buying easier to increase our inventory. We will use technology to calculate how much the staff makes and also how much money and profits 2manyKicks takes in on a daily, weekly, monthly, and yearly schedule. We can also use this technology to make sure the profit is enough to pay our staff, pay the bills, while also bringing in enough money to provide more inventory to the public. Technology will be used a lot throughout 2manyKicks as you can see.
8.1 Key Employees, Board of Directors and Human Resources
When 2manyKicks first starts out there will only be 1 employee. Myself. As we continue to get bigger more and more staff will be added to the team, doing jobs such as stocking, keeping track of sales, and working the register. Once the company grows it will make my job easier because I will make sure everything is going smoothly throughout the business while also working customer service. I will be running basically everything as the owner of 2manyKicks at the start of the business. We will have a financial group to work with where we go over sales and profit after each month.
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8.2 Identifying, Recruting, and Securing Key Participants
As 2manyKicks starts off it will be just me running the store. As we continue to grow we will look to hire people who love working with sneakers but also know what they are doing. We will make sure all people who we hire have the same passion we do and I do for sneakers and the streetwear side of life. We will look around the RIver Falls High School for people looking for a job that would love to come to work each and everyday.As we get bigger we would put out job listings online for people to set up an interview with myself.
2manyKicks would have a 5 step process for hiring someone. They would first have to apply for an interview with myself as we go over their life and their experiences. We would then have them come back at a later date and talk about the business side of things. We would ask them some questions and once they leave myself any the employees we have at the time would see how we feel about the person and if they would be a good fit for our company. We will then make a judgment and decide if they are the person we want helping run this company.
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8.3 Compensation and Incentive Plans
2manyKicks will have a certain way money goes throughout the business and how people are getting paid. To start off all employees will get paid by the hour and will be paid the same amount. However, yearly bonuses and raise in pay will be offered to all the people who showed they are in the business for the long run and showed that they deserve it. Pay will be handed out in the form of bills or straight to the bank accounts of the employees. At the start of creating and growing the company, when it is just myself, the money will be reinvested back into the company. We will also always have money put aside to reinvest back into the company to keep it going. Employees will get paid on sick days and can have up to 6 paid sick days each month. Employees will get paid for how much they work at the end of every 2 weeks. All people getting paid by the company will receive their pay at the same time every 2 weeks.
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9.1 Future Goals
3 Year Goal
2manyKicks has a goal to have been successful enough at the first company location to open a new one in the Twin Cities of Minnesota. This would mean more employees would be hired and more relationships could be made. We are hoping to have enough deals done be able to have enough profit left over each month to pay for enough inventory for a third store. We would keep it at 2 at this time period but having plenty of inventory is always nice.
5 Year Goal
By the 5 year mark 2manyKicks is hoping to be well enough established to be able to recruit new people to the sneaker world. At this point we would love to become one of the most well known sneaker stores with the likes of Round Two and Flight Club. We are hoping to have at least 3 stores across the Midwest Area. We would also love to have the staff member number around 75 people combined from all 3 locations. The main goal at this point would be to have an established enough company, so if we wanted another location on the West Coast it could be a hit because we are well enough known.
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9.2 Risks and Potential Adverse Results
Financial Risk: Being able to keep our customers happy and consistent are very important to the well-being of 2manyKicks. The costumer rate going down means employees wouldn’t get paid and also not being able to pay the bills would lead to the downfall of a business. Over time we are hoping to gain enough profit to pay off all expenses that were made at the start of opening the company and to be able to reinvest back into the company.
Investment Risk: 2manyKicks is an investment based company. If a sneaker doesn’t go up in price then the company is losing money. If this happens to much the company could fail. At 2manyKicks we will make sure to keep a close eye on the price of each sneaker to see what is doing well and what is doing bad and when to know when the right time to buy and sell is.
Relationship Risk: When buying and selling and owning the business, you must make certain transactions that are going to benefit 2manyKicks. Sometimes a no can hurt but if bad deals keep coming through 2manyKIcks will start to downfall and those transactions will just hurt the company. A simple no can help the company,
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9.3 SWOT Analysis
Strengths:
- 2manyKicks will always build up relationships and make everyone feel comfortable when walking into the shops. The Costumer Service we will afford will be top notch to ensure that everyone who comes in leaves happy. Based on surveys our customers have rated us 5 stars 10/10 times.
- 2manyKicks will make sure that all marketing done is making sure to be eye grabbing to the average person. We will make people want to come to the shops, even if they aren't someone who loves shoes if we market it right they may come in. If we then provide good service they may get into it and we can grow our business that way. Marketing here at 2manyKicks will always be done in a great way to attract all people with different taste.
Weaknesses:
- 2manyKicks may struggle with getting people to come at first. Many people will have their go to stores to get what they need. At 2manyKicks we have to make sure we can get their attention and draw them into the store to shop with us. We will have our dispalys pieces and prices in our window to show people we have great shoes with an even better price.
- Financing at the start of the company with a little audience could be a challenge. To keep the business going we must buy inventory but also pay employees and pay bills. We will have money put aside to use for funding at the start of building up the company
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9.3 SWOT Analysis
Oppurtunities:
- With the nearby cities in Minnesota, like Saint Paul and Minneapolis. The opportunity for the business to take off is there and to expand into other parts of the country also isn’t out of the question. 2manyKicks will capitalize on all opportunity to grow that is throw their way.
- 2manyKIcks will be opening at the perfect time as the sneaker world is at an all time high. People are paying thousands and thousands of dollars for shoes. There is plenty of opportunity to be a success. 2manyKicks will strive to be able to be a go to store for many all around the state.
Threats:
- The economy could pose as a big threat because if the price goes down there is less money to be made in the company. The less money being made will prevent 2manyKicks from growing and expanding.
- With so many competitors like resellers and businesses all over the world, it can be risky to open a sneaker store. 2manyKicks will make a great effort to attract people into the store as new customers each and every day.
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