Executive Summary
Born from a thesis statement about the effect of fashion on our bodies, Stylishly Barefoot is a footwear company that prioritizes your sense of style AND the health of your feet.
Our products are set up to appeal to people who know what barefoot shoes are but also those who don’t. The point is to make functional footwear the new normal.
Based on our analyses of the conventional and barefoot footwear industries, melding the two will result in a booming success. Our home, New York, has over 6.4 million people over 19 years old. A large portion of these people fit into our target market. The sales strategy we’ve designed is projected to generate $500,000 in our first year of operation.
Stylishly Barefoot is seeking $180,000 in start-up or growth capital to fund operations, marketing, and staffing in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $640,000 | $950,000 | $1,380,000 |
| Gross margin | 52% | 52% | 52% |
| Net profit / (loss) | $61,600 | $130,000 | $226,800 |
Company Overview
Stylishly Barefoot marries trendy shoes with foot health. Wellness is on the rise, and our feet shouldn’t be left behind.
Trendy shoes aren’t always the best for the structure of our feet. The pointed or rounded toes and high heels cause structural changes over time. Improper footwear can lead to the formation of bunions, callouses, and even other issues, such as back pain.
People have had to choose between being stylish and having functional feet for too long. Well, not anymore.
Our founders are a married couple, Jack and Jill Jones. Jill is a podiatrist, and Jack has a master's in Fashion. His thesis was on the impact of fashion trends on the integrity of the structures of our bodies, with Jill and her colleagues serving as medical expertise.
“Barefoot shoes” have come a long way in recent years. They’re shoes designed to mimic the shape of bare feet to prevent the malformation of the bones in your feet. The only issue with these shoes is that they don’t always look aesthetically pleasing, and THIS is what we’re addressing.
With our respective professions, we have been able to design a range of stylish footwear that doesn’t impact the health of your feet. The range includes a pair of shoes for every part of your day.
Stylishly Barefoot is based in New York, the fashion capital of America. We chose New York over Los Angeles because of its proximity to major fashion houses and fashionable population. Making a statement is the status quo in New York, and that’s exactly what our brand needs to break into the market. Market and Customer Analysis? Want to know the key to knowing exactly who your business is serving and the best way to do so? The answers lie in a market and customer analysis.
Legal structure: LLC
Mission: To deliver exceptional footwear company services to clients in Portland, Oregon, USA, building long-term relationships through quality, reliability, and deep expertise.
Objectives:
- Year 1: Establish operations, reach initial revenue target of $640,000, and build a loyal client base
- Year 2: Expand service capacity, grow revenue to $950,000, and hire additional staff
- Year 3: Achieve operational profitability, strengthen market position, and evaluate expansion opportunities
Market & Customer Analysis
The footwear industry as a whole is large. Retail shoe sales generate over $50 billion every year. The barefoot shoe industry, our specialization, was valued at $471.1 million in 2021. The industry is projected to grow ~5.3% to $788.7 million in 2031.
The market is segmented between domestic and international retailers. International fast fashion retailers are gaining popularity because of their attractive prices. The quality is on par with average items produced locally, so it is not a factor most consumers consider.
Shoes focused on the health of our feet are becoming ever more popular in the domestic market. There are a few brands that have come out with barefoot shoes, and there is a large community that is enthusiastic about wearing the proper shoes.
One such business is Barefoot on Cloud 9, a wellness shoe business operating in New York. They specialize in barefoot shoes for outdoor experiences. We differ from them by having a pair of heels, sneakers, sandals, and pumps in our range.
Most barefoot shoe retailers don’t have stylish shoes, and that’s what dissuades most people from making the shift. This is the one pitfall of our competitors that we took advantage of, and our shoes do not have that typical off look that people describe barefoot shoes to have.
Customer analysis:
Individuals who are interested in wellness are typically older than 25. They usually have a job that leaves them with at least 30% disposable income. More women than men are interested in wellness.
Despite interest being sktowardor of women, most barefoot shoe designers target men. The shoes are typically for outdoor activities such as hiking and running, which could explain this design choice.
However, most brands that started out offering footwear only to men have shifted their offerings to include women.
The only issue is that many barefoot companies only consider outdoorsy people, leaving people who prefer different fashion styles out of the equation. That’s why we’ve designed our target market to include people with all styles. Our range includes heels, sneakers, sandals, and pumps. We have two styles of each to appeal to different settings.
Thus, our target market is segmented as such:
- Women aged 25-55. We’ve decided on this range as these women have been recorded to wear heels the most. Preferences and health issues tend to leave women older than this shopping for flat footwear. Women younger than this are either in college or high school and don’t wear heels daily.
- Men aged 20-70. Our men’s footwear appeals to men of all ages. Our sneakers are universally attractive and offer excellent foot support, which everyone is interested in regardless of age.
- We also have sneakers and flats for women. The previously mentioned segment of women is also shown to shop for sneakers and flats. The heels will be what draws them to Stylishly Barefoot, but having all their footwear needs met is what will keep them here.
Sales and Marketing Plan Effective sales and marketing strategies are essential for the success of a business. In today's highly competitive market, it is crucial for businesses to employ a variety of tactics to attract and retain customers.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Vivobarefoot | Established brand, wide reach | Higher price point, less personalised |
| Xero Shoes | Strong marketing, national presence | Generic offering, less specialist focus |
| Lems Shoes | Competitive pricing | Lower service quality, limited expertise |
Stylishly Barefoot's competitive edge: Specialist expertise, personalised service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
To illustrate a comprehensive approach to sales in the footwear business, we present an example of a footwear business sales plan. The sales strategies in this plan focus on:
- Targeting the right audience: The first step is to identify the target audience, which in this case could be fashion-conscious individuals between the ages of 18-35 who are willing to spend on quality footwear.
- Conducting a thorough pricing analysis: Next, a pricing analysis is conducted to determine competitive pricing that offers value for money while ensuring profitability.
- Utilizing effective distribution channels: In terms of distribution channels, the plan suggests a combination of online sales through an e-commerce website and partnerships with select retail stores.
- Implementing impactful marketing campaigns: To increase brand visibility and drive sales, the plan recommends implementing marketing campaigns through various channels such as social media, influencer collaborations, and targeted advertising. By implementing these sales strategies, the footwear business aims to:
- Effectively reach its target audience
- Offer competitive pricing
- Expand its distribution channels
- Create impactful marketing campaigns These efforts are aimed at driving sales and achieving success in the markets
Pricing strategy: Pricing is set to be competitive within the Portland, Oregon, USA market while reflecting the quality and specialist nature of the services delivered. All pricing is reviewed annually against market benchmarks.
Marketing channels:
- Digital presence (website + SEO) — professional website with content marketing to attract organic search traffic from clients searching for footwear company services in Portland, Oregon, USA
- Social media — active presence on relevant platforms to build brand awareness and engage prospective clients
- Referral programme — incentivised referral programme for existing clients; target 30% of new clients via referral by end of Year 2
- Local networking and partnerships — attendance at industry events and partnerships with complementary businesses in Portland, Oregon, USA
- Google Ads — targeted paid search campaigns for high-intent keywords during launch phase
Marketing budget Year 1: $57,600 (9% of projected revenue)
Additional marketing notes:
Our marketing plan for the footwear business focuses on targeting a wide range of consumers, utilizing various strategies to increase brand awareness and drive sales. To effectively reach our target audience, we will implement target audience segmentation, ensuring that our marketing efforts are tailored to specific groups based on demographics, interests, and buying behaviors. In terms of brand positioning strategies, we will emphasize the unique features and benefits of our shoes, highlighting their quality, comfort, and style to differentiate ourselves from competitors. Online marketing tactics will play a crucial role in our plan, including social media advertising, search engine optimization, and email marketing campaigns. Additionally, we will establish partnerships with influencers in the fashion and lifestyle industry to promote our shoes and increase brand visibility. Online marketing strategies play a largerole in reaching a wider audience. Utilizing search engine optimization (SEO), pay-per-click advertising, and targeted email campaigns can help increase website traffic and generate more sales. Additionally, influencer partnerships have become increasingly popular in the fashion industry. Collaborating with influential individuals who have a large following can help create brand awareness and drive sales. Retail store promotions, such as discounts, loyalty programs, and special events, can also attract customers and encourage repeat visits. Social media advertising is another effective tool for shoe businesses, as platforms like Instagram and Facebook allow for targeted advertising and engagement with potential customers. Lastly, customer retention strategies, such as personalized offers, excellent customer service, and loyalty programs, are crucial for building long-term relationships with customers.
Operating Plan
Personnel Department Task Deadline Jack and Jill Jones Quality Assurance Monitor the manufacturing process to ensure that footwear meets design standards. Ongoing Becky Locke Inventory Management Oversee stock count in-store and at the warehouse. May 5th Leah Ting Marketing Facilitate advertising contracts with advertising agencies to increase customer reach by 25%. June 1st Finley Pocket Finance Update profit strategy based on current sales figures and market research. End of quarter 4. Donae Bolynne Human Resources Recruit and onboard three new shop assistants, and oversee the promotion of current shop staff to store supervisor. September 1st.
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Priya Osei (Owner / Director) | Full-time | Full-time | Full-time |
| Operations / Senior Staff | Part-time | Full-time | Full-time |
| Support / Junior Staff | — | Part-time | Full-time |
Legal & compliance:
- All required licences and permits for footwear company operations in Portland, Oregon, USA
- Professional liability and general liability insurance
- Data protection compliance in accordance with applicable laws
- Health & safety policies and risk assessments in place before trading begins
Management Team
Jack and Jill Jones are the founders of Stylishly Barefoot. Dr. Jill Jones has both her degrees from NYU. She is a podiatrist by trade and offered much medical knowledge behind our shoes' design.
Jack Jones has a Bachelor's and Master's Degree in Fashion design, also from NYU. The majority of his studies were focused on marrying fashion and health. This was inspired by the belief that corsets were detrimental to the ribcages of women in the Victorian Era. He realized that fashion has continued to impact our bodies even in these modern times. Another example of how fashion impacts our bodies is Chinese foot binding. The idea that shoes restrict our feet is not new, but the opposite is. The rise of barefoot footwear inspired Jack, and he set to design the future of footwear with his then-best friend Jill, whom he met at a networking event for potential graduates at NYU.
He gained experience working in department stores, specifically in the footwear section. He spent his years there talking with customers about their woes regarding footwear and used all of this as input for the shoe designs.
Jill eventually graduated and has been practicing for ten years. Her real-life experience and medical knowledge, along with Jack’s research and studies, made for the perfect design team of the latest and greatest barefoot footwear.
Their passion has finally paid off, and they are ready to launch their idea. Seeing that neither of them has experience in running a business, they are seeking a Chief Executive Officer to spearhead their business’s operations.
The ideal candidate has at least five years of experience in a leadership position in the footwear retail industry. They should have at least a Bachelor’s degree in Business Management or a related field.
The company will operate with a management team of three members for the first year. All management functions outside of the team’s capabilities will be outsourced. The second half of our first year of operations will be spent sourcing candidates for a complete management team.
Priya Osei — Founder & Director
Advisory support: The business will engage an experienced accountant and a business mentor through the local enterprise support network to provide financial oversight and strategic guidance during the first three years of trading.
Financial Plan
Projected Profit or Loss Statement
Year 1 Year 2 Year 3 Sales $500,000 $650,000 $750,000 Direct Cost of Sales $250,000 $350,000 $390,000 Production Payroll $0 $0 $0 Other $7,000 $10,000 $13,000 Total Cost of Sales $257,000 $360,000 $403,000 Gross Margin $243,000 $290,000 $347,000 Gross Margin % 48.6% 44.6% 46.2% Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $60,000 $65,000 $75,000 Advertising/Promotion $800 $1,000 $1,000 Travel $0 $0 $0 Miscellaneous $500 $500 $500 Total Sales and Marketing Expenses $61,300 $66,500 $76,500 General and Administrative Expenses
General and Administrative Payroll $20,000 $40,250 $100,250 Sales and Marketing and Other Expenses $0 $0 $0 Depreciation $0 $0 $0 Dues and Subscriptions $200 $200 $200 Professional Fees $300 $300 $300 Rent $10,000 $10,000 $10,000 Software Purchases $0 $0 $0 Insurance $4,000 $4,000 $4,000 Telephone and Internet Access $2,000 $2,000 $2,000 Utilities $600 $600 $600 Miscellaneous $0 $0 $0 Payroll Taxes $8,000 $10,750 $17,525 Other General and Administrative Expenses $0 $0 $0 Total General and Administrative Expenses $45,100 $59,100 $134,875 Other Expenses:
Other Payroll $0 $0 $0 Consultants $0 $0 $0 Contract/Consultants $0 $0 $0 Total Other Expenses $0 $0 $0 Total Operating Expenses $106,400 $125,600 $211,375 Profit Before Interest and Taxes $136,600 $164,400 $135,625 EBITDA $136,600 $164,400 $135,625 Interest Expense $6,000 $7,500 $5,500 Taxes Incurred $0 $20,000 $12,000 Net Profit $130,600 $136,900 $118,125 Net Profit/Sales 26,1% 21,1% 16,9%
Projected Cash Flow Statement Cash Received Year 1 Year 2 Year 3 Cash from Operations
Cash Sales $500,000 $650,000 $700,000 Cash from Receivables $0 $0 $0 Subtotal Cash from Operations $500,000 $650,000 $700,000 Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $200,000 Subtotal Cash Received $500,000 $650,000 $900,000 Expenditures
Expenditures from Operations
Subtotal Spent on Operations $106,400 $164,400 $135,625 Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $20,000 $12,000 Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $106,400 $125,600 $211,375 Net Cash Flow $393,600 $524,400 $688,625 Cash Balance $130,600 $136,900 $318,125
Projected Balance Sheet Assets Year 1 Year 2 Year 3 Current Assets
Cash $130,600 $136,900 $318,125 Accounts Receivable $0 $0 $0 Other Current Assets $0 $0 $0 Total Current Assets $130,600 $136,900 $318,125 Long-term Assets $0 $0 $0 Accumulated Depreciation $0 $0 $0 Total Long-term Assets $130,600 $136,900 $318,125 Total Assets $130,600 $136,900 $318,125 Liabilities and Capital
Current Liabilities
Accounts Payable $0 $0 $0 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $0 $0 $0 Long-term Liabilities $0 $0 $0 Total Liabilities $0 $0 $0 Paid-in Capital $0 $0 $0 Retained Earnings $130,600 $136,900 $41,000 Earnings $130,600 $136,900 $318,125 Total Capital $130,600 $136,900 $318,125 Total Liabilities and Capital $130,600 $136,900 $318,125 Net Worth $130,600 $136,900 $318,125 Wrapping up the Shoes Business Plan In conclusion, the shoes business plan presents a comprehensive analysis of the market and customer segments, as well as a detailed operating and financial plan. The strategic approach aims to capitalize on market opportunities and meet customer needs effectively. With proper management and execution, the business has the potential for success in the competitive footwear industry.
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $640,000 | $950,000 | $1,380,000 |
| Cost of goods sold | $307,200 | $456,000 | $662,400 |
| Gross profit | $332,800 | $494,000 | $717,600 |
| Gross margin | 52% | 52% | 52% |
| Salaries and wages | $115,200 | $171,000 | $248,400 |
| Marketing and advertising | $57,600 | $85,500 | $124,200 |
| Rent and utilities | $60,000 | $60,000 | $63,000 |
| Other operating costs | $38,400 | $47,500 | $55,200 |
| Total operating expenses | $271,200 | $364,000 | $490,800 |
| Net profit / (loss) | $61,600 | $130,000 | $226,800 |
Break-even analysis:
- Estimated fixed monthly costs: $17,800
- To cover fixed costs, Stylishly Barefoot needs to generate approximately $34,200 in monthly revenue
- Break-even is projected to be reached in Month 5 of trading
Key financial assumptions:
- Revenue growth of 48% in Year 2 and 45% in Year 3 based on planned capacity expansion and marketing investment
- Cost of goods sold estimated at 48% of revenue throughout the forecast period, consistent with industry benchmarks
- Staffing costs set at 18% of revenue, scaling incrementally with new hires in Year 2 and Year 3
- Marketing budget fixed at 9% of revenue; reviewed quarterly and adjusted based on channel performance
- No bad debt assumed; payment terms enforced from day one
Funding requirements:
Stylishly Barefoot is seeking $180,000 to fund the following:
| Use of funds | Amount |
|---|---|
| Equipment and fit-out | $72,000 |
| Working capital (6 months) | $63,000 |
| Marketing launch | $27,000 |
| Legal, licences, and professional fees | $18,000 |
| Total | $180,000 |