by Mona Rigdon

Created on: June 02, 2009   Last Updated: June 03, 2009

Since the 1950's, the popularity of skateboarding has exploded in the United States. It is currently estimated that one in ten teenagers in the United States own or ride a skateboard, and it continues to grow in popularity. Hundreds of skate parks have sprung up all over the United States in the last decade. The popularity of this sport has spawned billions of dollars of revenue in many sectors, from small business to high-dollar corporate, and even television and merchandising. If you are considering opening a skateboard shop to merge your love of skating with your love of a good paycheck, there are several steps that need to be taken.

To begin with, entrepreneurs must understand their market. To do this, some research is required. How many skateboard shops are in the area? Where are they located? What sort of revenue do they bring in? What type of inventory do they carry? Check the retail prices on their inventory. Check the wholesale prices. What is the profit margin? What laws apply to opening a skateboard shop in your town and state? What type of insurance is required? What types of permits are required? How much does real estate run? Does a suitable facility exist and is it available for rent or lease, or will you have to purchase or build your own facility? How popular is skateboarding in your area? How large will your target market actually be?

Use this and other information to write your business plan. In writing your business plan, you will lay out for lenders, investors, and/or grant-makers what type of business you will run, what you expect the expenses to specifically be and cost on a month-to-month basis, how you intend to meet these expenses each month, etc. You will need to include what money you have as an initial investment, if any, and how you intend to get the rest. If you need financing, you need to consider how much over the initial cost of facilities, inventory, insurance, and other obvious costs you might need. For example, how will you be able to repay your loan before your business begins to generate a profit? How will you pay yourself and/or your employees? What if you incur unexpected expenses? You will need to have money set aside to pay these expenses for at least one year - to ensure your business can meet daily operating costs long enough to give it time to become self-sufficient. You will also need to tell in your plan what will make your company successful. Will it be the only skate shop in a hundred mile radius? Will it

• 1
• 2
• Next Page >>