How to Start a Shoe Manufacturing Business
To start a shoe manufacturing business, the entrepreneur must remember that the industry is experiencing a period of expansion and maturity. Your products have enough capacity to compete with the international market, not only for the beauty and quality of the shoes, but the shape in which they occur.
emphasize that the shape or model of production is important as it influences quality and sales, as well as the dealer’s decision to contract the supply of shoes.
Market of a shoe manufacturing business
A small shoe manufacturing business now has the possibility to act locally and also export its products. This is possible due to public policies that are increasingly being designed to satisfy the footwear market, both for small and micro businesses.
National shoes must go through a period of professionalization, quality and standardization, as the fate of Peruvian shoes has mostly entered the US and European market. These customers are demanding, but the footwear industry in Peru has enough capacity to please them.
When the market is internal, that is, the shoes are intended for sale only in Peru, the entrepreneur finds challenges to compete with the large footwear companies that have consolidated in the market and, therefore, the solution is to decentralize sales , export to other states.
Always remember that exporting to other countries is almost unavoidable for the national footwear and clothing sectors in the solution, since the sales conditions only sometimes do not favor the growth of the company . Some entrepreneurs find themselves in the situation of having to lower their price to satisfy the domestic market, where costs remain the same, and until the moment of cheap production, compromise the quality of the product. So the solution ends up being exported.
Organization of the production process in a shoe manufacturing business
Remember that there is no one to the structure of shoe production that will depend on the product and raw material of each model manufactured in the shoe manufacturing business.
For example, if the raw material is leather, the design for production and it is a raw material for plastic or synthetic materials, the production is another design.
Women’s shoes also have unique production properties: the structure and design for the production of men’s and women’s shoes may be the same, but what changes are the accessories that can be added to women’s shoes and the technology used in machinery and equipment.
Make men’s shoes can be manufactured in a way that follows a production line with almost no variation: the production manager can standardize changes in the process of being more productive in a shoe manufacturing business.
The important thing to remember is that for the production of women’s and men’s shoes, the difference is the quality and ability of entrepreneurs to produce shoes that accompany the fashion and purchasing trends of consumers, but the shoe manufacturing business does not get good sales.
Footwear production has the following production stages:
- Design and modeling;
Structure of a shoe manufacturing business
The structure of a shoe manufacturing business depends on the number of pairs of shoes and the projected initial production. Planning the structure is very important and should be included in the production project as it determines the production capacity of your shoe manufacturing business.
And the Production Project must rely on the shoe manufacturing business’s Business Plan , because investors, retailers and other interested parties in the business, evaluate the possibility of negotiating with the manufacturing business also according to its capacity.
For a production of a thousand pairs of shoes per day, the employer must have a structure: headquarters for the reception of raw materials to administrative and warehouse processes, storage of raw materials, the location of the cuts and place of assembly , the location of supervision and packaging, storage of finished product warehouse for dispatch, office, toilets and changing rooms with showers and cafeteria.
Production Plan of a shoe manufacturing business
The production of footwear consists of different phases, finishes, discontinuous flow, with stops and starts. The important thing is that it is developed with bottlenecks, little variability, with efficient inventory management and waste reduction: the result is productivity.
Therefore, a production plan focused on the supply chain and production control, reducing costs and improving the process is necessary in your shoe manufacturing business.
Regarding the supply chain, the initiative of the wisest entrepreneurs should be the option for efficient management of suppliers, choosing those that are integrated with production. To launch this partnership with suppliers the shoe manufacturing business can be trusted, a first step could be the implementation of ERP software that integrates the application of reserves with production needs, reducing transaction costs.
The ERP works drawing production so that the supplier knows the exact moment when the producer needs more material. The production control will measure the optimized use of resources, without waste and without additional costs for the shoe manufacturing business.
Business Tips for Shoe manufacturing business
Shoes produced from synthetic materials have superior productivity to those produced from leather. This is due to the almost artisanal process to produce leather footwear.
Before opting for the production of leather or synthetic material footwear in a shoe manufacturing business, entrepreneurs must calculate the expenses and see if there is a production structure and design, because the production process will depend on the raw material.
Equipment for the shoe manufacturing business
To start production, entrepreneurs will need equipment such as impact platform, roller track, booster pump, paper, pot manufacturing; Bottom line: the production has about a team of 24, including raw machinery and records and small stock of materials that aid in production.
Investment in a shoe manufacturing business
Investments in a shoe manufacturing business are highly variable and depend on the production capacity, raw materials, equipment, chosen product and the variety of products.
So before starting production, the entrepreneur must calculate all the initial costs according to the business plan, that is, the costs and investments must follow in detail what the shoe manufacturing business is going to resell, and they will conform to the structure and capacity that is feasible to implement.
A business plan that details with precision and clarity, and contains a good feasibility study that shows that the plant can achieve satis manufacturing business financial returns, without a doubt attracting investment and financing.
Specific legal requirements for a shoe manufacturing business
To set up a shoe manufacturing business or any other businessperson, they must know their rights and duties.
To learn more about the taxation that govern the production and sale of shoes, the exemption of exports and other functions such as ICMS, exchange rate policy and other matters related to the footwear industry, entrepreneurs can access the Abicalçados portal, which is the Brazilian Footwear Association.
After knowing the necessary information and knowing how to set up a shoe manufacturing business, now you can open your own business.