Do you want to start a slippers making company and need to write a plan? If YES, here is a sample slippers making business plan template & feasibility report.
Business ideas are all around us but one of the challenges that entrepreneurs are confronted with is how to know a business that can become profitable and successful. The rule of thumb is in choosing a business whose products or services are needed in our everyday life; a business whose products can be purchased by the rich as well as the poor and a business that is less competitive in your location.
One of such businesses is slippers making. It is a fact that slippers are used by all and sundry. Slippers making business is indeed a profitable and thriving business that an aspiring entrepreneur with the required startup capital can successfully launch and grow from scratch to profitability.
If you are interested in starting this business, then you will find this sample slippers making business plan template highly useful.
A Sample Slippers Making Business Plan Template
1. Industry Overview
Any person you find on the street will of course be wearing one form of footwear or the other, and in most cases they will put on slippers. Slippers which is known as flip-flops are light footwear that are easy to pull on and off and are intended to be worn indoors or just around your vicinity.
Slippers making business is a niche in the shoe and footwear industry and players in this industry manufactures footwear for men, women and children. They are involved in manufacturing shoe and footwear in different forms such as rubber and plastic footwear, protective footwear (Safety boots), house slippers and slipper socks.
Companies in this line of business also manufacture men’s or women’s footwear specifically designed for casual, formal and work environments et al. These products also include men’s or women’s shoes with rubber or plastic soles and leather or vinyl uppers.
Research conducted by IBISWORLD shows that the Shoe & Footwear Manufacturing industry in the united states has a low to moderate level of concentration. The US shoe and footwear manufacturing industry is concentrated: the top 50 companies account for more than 95 percent of sales.
New Balance and Allen Edmonds who are considered to be the two dominant players in the industry are estimated to account for an estimated 35.3 percent of the revenue generated in the industry. This low-to-moderate concentration reflects a fragmented market that has a mix of a few large companies and many small industry operators specializing in higher valued-added footwear.
The largest global footwear companies, such as Nike and Adidas, manufacture nearly all of their products outside of the country. This practice has increased over the past few years as large manufacturers discontinue production in the United States, instead focusing domestic activities on design and wholesale of footwear.
Statistics has it that in the United States of America alone, the Shoe & Footwear manufacturing industry generates over billion annually from more than 876 registered and licensed companies. The industry is responsible for the employment of over 10,416 people.
Experts project the shoe and footwear manufacturing industry to grow at a -2.7 percent annual rate. The establishment in this industry that has a dominant market share in the United States of America are; New Balance and Allen Edmonds.
The shoe and footwear manufacturing industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale or you can choose to start on a large scale with factories both in the United States of America and in countries in Asia where you can get cheaper labor and raw materials.
2. Executive Summary
Lake Perry® Slippers Manufacturing Company, Inc. is a registered slippers manufacturing company that will be located in Fort Wayne, Indiana; in an ideal location highly suitable for the kind of business we want to establish. We have been able to lease a facility that is big enough (a 20 thousand square foot facility) for the kind of standard slippers manufacturing company that we intend launching.
Lake Perry® Slippers Manufacturing Company, Inc. will manufacture a wide range of slippers for men, women and children. We will also manufacture house slippers, slipper socks, open-heel slippers, closed slippers, sandal slippers, evening slipper and customized slippers made to resemble something other than a slipper and are sold as a novelty item.
The slippers are usually made from soft and colorful materials and may come in the shapes of animals, animal paws, vehicles, cartoon characters, etc. We are set to service a wide range of clientele not just in the United States of America, but in parts of the world.
We are aware that there are several slippers manufacturing companies all around the United States of America, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.
Lake Perry® Slippers Manufacturing Company, Inc. will ensure that all the slippers that leave our factory are of the highest quality and highly durable and affordable. We want to build a business with a wide range of client base. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to.
Lake Perry® Slippers Manufacturing Company, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products.
Lake Perry® Slippers Manufacturing Company, Inc. is owned by Lake Perry. Lake Perry has a Diploma in shoe and footwear Making and a B.Sc. in Business Administration, with over 15 years’ experience in the shoe and footwear manufacturing industry, working for some of the leading brand in the United States.
3. Our Products and Services
Lake Perry® Slippers Manufacturing Company, Inc. will manufacture a wide range of slippers for men, women and children. We are set to sell our products to a wide range of clientele not just in the United States of America, but also all parts of the world and of course to make profits.
Our product offerings are listed below;
- Open-heel slippers – usually made with a fabric upper layer that encloses the top of the foot and the toes, but leaves the heel open. These are often distributed in expensive hotels, included with the cost of the room.
- Closed slippers – slippers with a heel guard that prevents the foot from sliding out.
- Slipper boots – slippers meant to look like boots. Often favored by women, they are typically furry boots with a fleece or soft lining, and a soft rubber sole. Modeled after sheepskin boots, they may be worn outside.
- Sandal slippers – cushioned sandals with soft rubber or fabric soles, similar to Birkenstock’s cushioned sandals.
- Evening slipper, also known as the “Prince Albert” slipper in reference to Albert, Prince Consort. It is made of velvet with leather soles and features a grosgrain bow or the wearer’s initials embroidered in gold.
- Customized slippers made to resemble something other than a slipper and are sold as a novelty item. The slippers are usually made from soft and colorful materials and may come in the shapes of animals, animal paws, vehicles, cartoon characters, etc.
4. Our Mission and Vision Statement
- Our vision is to become the leading brand in the shoe and footwear manufacturing industry in Indiana.
- Our mission is to establish a world – class slippers manufacturing company whose products will not only be retailed in the United States of America, but also be exported to other countries of the world.
Our Business Structure
Our intention of starting a slippers manufacturing company is to build a standard company in Fort Wayne, Indiana. We will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Factory Manager
- Human Resources and Admin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Slippers Designers and Making Experts
- Accountants/Cashiers
- Customer Services Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board.
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Factory Manager:
- Responsible for managing the daily activities in the slippers making factory
- Ensures that proper records are kept and warehouse does not run out of finished products
- Ensure that the factory is in tip top shape and easy to locate
- Control slippers distribution and supply inventory
- Supervise the workforce in the slippers making factory.
Merchandize Manager
- Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Help to ensure consistent quality of raw materials are purchased
- Responsible for the purchase of slippers raw material for the organizations
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
Slippers Designers and Making Experts
- Responsible for designing and manufacturing different types of slippers
- Responsible for designing and manufacturing customized slippers
Accountant/Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
6. SWOT Analysis
Lake Perry® Slippers Manufacturing Company, Inc. is in business to become one of the leading slippers manufacturing companies in the United States of America and we are fully aware that it will take the right business concept, management and organizational structure to achieve our goal.
We are quite aware that there are several slippers manufacturing companies all over the United States of America, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Lake Perry® Slippers Manufacturing Company, Inc. employed the services of an expert HR and Business Analyst with bias in the manufacturing industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Lake Perry® Slippers Manufacturing Company, Inc.;
- Strength:
Our core strength lies in the high quality of our finished slippers, the power of our team and the state of the art factory that we own. We have a team of highly trained and experienced slippers designers and support staff members that can produce top notch slippers.
We are well positioned in the heart of Fort Wayne – Indiana and we know we will attract loads of distributors from the first day we open our company for business.
- Weakness:
A major weakness that may count against us is the fact that we are a new slippers manufacturing company and we don’t have the financial capacity to compete with multi – million dollar companies when it comes to manufacturing slippers at a rock bottom prices.
So also, we may not have enough cash reserve to promote our slippers manufacturing company the way we would want to do.
- Opportunities:
The fact that we are going to be operating our slippers manufacturing company in Fort Wayne – Indiana provides us with unlimited opportunities to sell our slippers to a large number of people.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential customers will be looking for when they visit our showroom; we are well positioned to take on the opportunities that will come our way.
- Threat:
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new slippers manufacturing company in same location where ours is located. So also, unfavorable government policies may also pose a threat to our business.
7. MARKET ANALYSIS
- Market Trends
One common trend in the shoe and footwear manufacturing industry is that the demand for its product is driven by fashion, demographics, and of course consumer disposable income. The profitability of individual slippers manufacturing companies depends on their ability to design and market shoe models that effectively target consumers’ tastes and preferences.
Large slippers manufacturing companies have economies of scale in distribution and marketing and small – scale slippers manufacturing companies can compete successfully by crafting customized slippers.
Going forward, customized slippers brands will have to position themselves to cater to a stronger middle – class market. It has been projected that by the year 2030, the majority of the world’s population will be part of the middle class due to a drop in the amount of people living in extreme poverty.
With this development, there will be influx of new consumers and this will put pressure on product developers to meet their unfamiliar preferences. Developed economies placing their products in emerging markets will also have to adjust their pricing strategies to compete with local low-price manufacturers.
Lastly, as part of marketing strategies, slippers manufacturing companies now ensure that they have showrooms at different locations where they display their goods. As a matter of fact, it is even cheaper to purchase directly from these showrooms as against purchasing from retail cum departmental stores. It is a strategy that helps them increase sales and income for their business.
8. Our Target Market
Perhaps it will be safe to submit that the shoe and footwear manufacturing industry is part of the industries that have the widest range of customers; almost everybody on planet earth need one form of footwear or the other. In view of that, we have positioned our slippers manufacturing company to service the clientele in the United States of America and other parts of the world.
We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We in the shoe and footwear manufacturing industry to manufacture a wide range of slippers for the following people;
- Men
- Women
- Children
Our Competitive Advantage
A close study of the shoe and footwear manufacturing industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative with your designs and market approach, customer centric and proactive if you must survive in this industry.
We are aware of the stiff competition and we are prepared to compete favorably with other leading brands in the United States. Our slippers manufacturing company is located in an ideal property highly suitable for the kind of business that we want to run. We have enough parking space that can accommodate over 30 cars/trucks per time.
One thing is certain, we will ensure that we manufacture a wide range of slippers in our factory at all times. It will be difficult for customers to visit our showroom and not see the type of footwear that they are looking for. Our excellent customer service culture, showrooms, online store, various payment options and highly secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Lake Perry® Slippers Manufacturing Company, Inc. is in business to manufacture and retail a wide range of slippers in the United States of America.
We are in the shoe and footwear manufacturing industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives. Lake Perry® Slippers Manufacturing Company, Inc. will generate income by selling the following products;
- Open-heel slippers
- Closed slippers
- Sandal slippers
- Evening slipper
- Customized slippers
10. Sales Forecast
One thing is certain when it comes to the slippers making business, if you are into the manufacturing or various types of slippers, you will always attract customers. and sales.
We are well positioned to take on the available market in the United States of America and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.
We have been able to examine the shoe and footwear manufacturing industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Lake Perry® Slippers Manufacturing Company, Inc., it is based on the location of our business and other factors as it relates to slippers manufacturing startups in the United States;
- First Fiscal Year (FY1): $350,000
- Second Fiscal Year (FY2): $550,000
- Third Fiscal Year (FY3): $1 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor manufacturing or retailing same designs of slippers as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Lake Perry® Slippers Manufacturing Company, Inc. we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become one of the preferred choice for residents not only in Fort Wayne – Indiana, but also throughout the United States.
We hired experts who have good understanding of the shoe and footwear manufacturing industry to help us develop marketing strategies that will help us win a large percentage of the available market in the United States of America. In summary, Lake Perry® Slippers Manufacturing Company, Inc. will adopt the following sales and marketing approach to win customers over;
- Introduce our slippers manufacturing company by sending introductory letters alongside our brochure to key stake holders in Fort Wayne – Indiana
- Ensure that we manufacture a wide range of slippers
- Make use of attractive hand bills to create awareness and also to give direction to our showrooms
- Position our signage/flexi banners at strategic places around Fort Wayne – Indiana
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our business
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Despite the fact that our slippers manufacturing company and showroom are well located, we will still go ahead to intensify publicity for the business.
Lake Perry® Slippers Manufacturing Company, Inc. has a long – term plan of opening our showrooms in various locations all around Fort Wayne Indiana and other key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Fort Wayne – Indiana before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Lake Perry® Slippers Manufacturing Company, Inc.;
- Place adverts on community based newspapers, radio and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Fort Wayne – Indiana
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our slippers manufacturing company and showroom in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Aside from quality, pricing is one of the key factors that gives leverage to a slippers manufacturing company, it is normal for consumers to go to places where they can get slippers at cheaper price which is why big player in the industry always attract loads of customers.
We know we don’t have the capacity to compete with leaders in the industry for now, but we will ensure that the prices and quality of all the slippers that we manufacture are competitive with what is obtainable amongst slippers manufacturing companies within our level.
- Payment Options
The payment policy adopted by Lake Perry® Slippers Manufacturing Company, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Lake Perry® Slippers Manufacturing Company, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via Point of Sale Machine (POS)
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for slippers purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
When it comes to a slippers making business, the major areas that you should look towards spending the bulk of your cash is in the purchase of latest slippers making machines, raw materials and of course renting or leasing well located facilities. You are also expected to pay your employees. This is the key areas where we will spend our startup capital on;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Lake Perry® Slippers Manufacturing Company, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring Business Consultant – $2,500.
- The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
- The total cost for long – term leasing of a standard manufacturing facility, warehouse and showroom – $250,000
- The total cost for remodeling the warehouse and showroom – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The total cost for Start-up inventory (purchase of slippers making tools and equipment and the purchase of slippers making raw materials inclusive) – $350,000
- The total cost for counter area equipment – $9,500
- The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The total cost for the purchase and installation of CCTVs: $10,000
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The total cost of launching a Website: $600
- Miscellaneous: $10,000
We would need an estimate of seven hundred and fifty thousand dollars ($750,000) to successfully set up our slippers making business in Fort Wayne – Indiana.
Generating Funds/Startup Capital for Lake Perry® Slippers Manufacturing Company, Inc.
Lake Perry® Slippers Manufacturing Company, Inc. is owned and financed by Lake Perry and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Lake Perry® Slippers Manufacturing Company, Inc. is to ensure that we continue to make available a wide range of slippers, deliver quality services, improvise on how to do things faster and cheaper.
We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them produce durable slippers and deliver excellent services at all times.
From our findings, another factor that kills new businesses is financial leakages. In order to plug financial leakages, the management of Lake Perry® Slippers Manufacturing Company, Inc. adopt the use of payment machine and accounting software to run the business.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the designs of slippers they want to see in our showroom.
We will not waste time in adopting new technology, best practices and diversifying our services. Lake Perry® Slippers Manufacturing Company, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of.
Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the facility (slippers making factory and showroom): In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Packaging and Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of slippers making machines and equipment: Completed
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Compilation of our list of designs of slippers that will be manufacturing: Completed
- Establishing business relationship with vendors – suppliers of slippers making raw materials, key stakeholders and distributors of slippers: In Progress