Its been around a year now since i started working on this idea "The Shoe Company".
Basically around a year ago the Egyptian Pound has been devaluated against foreign currencies, this cause all prices to spike to 2 or 3 times the prices at the time.. (before the devaluation happened a price for a normal shoe was around 1,000 - 1,500 EGP, but after devaluation happened prices went up to 3000 - 4000 EGP) anyways.. i saw huge gap in the market that can be a great opportunity to start a local brand with great quality and affordable prices and ever since that day I've been planing it.
My plan is depending mainly on two variables, First is marketing and second is the quality of the shoes itself. And since there is almost no competition in the local market (by that i mean all local brands have a really bad quality and they're targeting a totally different market segment) i thought that with the right marketing tools and good quality my startup can be a market leader.
This is the part where I explain the money needed:
First is Manufacturing Tools:
So far i have successfully made a deal with a shoe factory that will be manufacturing the shoes I need (you might ask why I'm not creating my own factory,, well thats because it will cost me a minimum of 1M USD, which is kind of a lot)
The factory already has all the machinery, but to be able to do new designs it will need 2 main things
1- Moulds: the mould is where you can mould the shoe sole and each shape and size needs a different mould. Cost per mould is around 1,200$
And since i plan to start with 3 shapes and according to previous market studies i need to start with 8 sizes.
After doing some calculations moulds total cost will be 28,800$
2- The lasts: A last is a mechanical form that has a shape similar to that of a human foot. It is used by shoemakers for the manufacturing of shoes. One pair of lasts costs around 15$.
As a start I will be needing 10 pairs for each size for each shape.
After some Calculations the lasts Cost will be 3,600$.
So the Total Manufacturing tools cost will be 32,400$.
Second is Design: Design is a little different from shape since the same shape can be used for different designs (Brogues and Oxfords for example). I will be looking to start with 2 designs per shape. that means a total of 6 designs to start with. Design Cost is About 1,500$/design.
After some calculations the design cost will be 9,000$.
Last but not least it is the Marketing: After talking and getting offers from several marketing agencies, I've reached to the best price for a marketing plan that includes Creating the brand till launching it will Cost around 4,000$
Plus a running cost for a year for managing the social media pages and the campaign which will cost 600$/month which is 7,200$ for a year.
With a total cost for Marketing of 11,200$
After adding all those costs the final total will be: 11,200 + 9,000 + 32,400 = 52,600$.
I tried to clarify everything as much as possible in this article.. so if you need to know anything else please don't hesitate to contact me right away.
My email is: [email protected]