Social Business Plan
By: Josh Pepoff
The Idea
• The idea behind the business is to create a business that
manufactures shoes in the USA. We want to provide jobs to people
in low income areas, provide shoes to children in low income
areas, to bring manufacturing back to the USA and to work
towards lowering the levels of poverty.
Market Research
• Market and Rough Estimate of Market Size: We cant have a definite
market until we decide our location but I can show the market share of types of shoes.
Although I do not have an exact number I do know our market share will decrease by
2017 since revenue is expected to decrease and since manufacturing is expected to
move back to the US. Also 2.393 billion pairs of shoes where bought in 2007 in the US.
Footwear Market Share
9%
17%
56%
18%
Womens
Children
Mens
Other Footwear and Accessories
Market Research Continued
• Customer: Our customer will be anyone who likes out style of
shoes or anyone who likes the social aspect of our company.
• Competition: Nike, Reebok, New Balance, Toms Shoes, Oliberte,
Adidas, Converse, Jordan, Bobs Shoes and many more.
Vision and Mission Statement
• Mission Statement: Our mission is to provide people in low income
areas, reliable, safe and good jobs, provide children in low income areas
a good pair of shoes, work towards bringing manufacturing back to the
USA and work towards lowering the levels of poverty.
• Vision Statement: Our vision is to eventually have a manufacturing plant
in the areas stricken the worst with poverty and to also be known as a
company that provides children in need of shoes with shoes. As our
company grows and is placed in more areas of poverty, we can start to
lower the levels of poverty. We also hope that when we are successful
other companies will see that manufacturing can be done in the USA and
they will follow in our footsteps.
How We Will Deliver out Product.
• To the customer: The customer can purchase the shoes directly
from our website. Then we will ship their shoes through one of the
main shipping companies at the speed of their choice.
• To retailers: The retail stores can talk directly to us to place an
order and we will provide them with their estimated date of
delivery and the cost of shipping.
• To volunteers: Volunteer can pick the shoes up at our warehouse
or we can delivery them to their volunteer location at no cost.
Suppliers and Partners
• Suppliers: For our suppliers we will need a US based company to
supply us with the raw materials needed to make out shoes such
as leather, metal for shoe laces and rivets, materials for soles,
etc. Our suppliers will have the benefit of working with a company
that is trying to bring America out of poverty and bringing
manufacturing jobs back to America. Some other suppliers will
also someone who cures and tans leather since some of our shoes
will be made with leather materials.
Suppliers and Partners Continued
• Partners: We will try to partner with volunteer groups to
distribute our free shoes to children in low income areas. In doing
this we can eliminate the extra cost that would be associated with
having paid staff to distribute the shoes. We will eventually
partner with a marketing firm as we grow to keep the cost down
of hiring more employees. We may also partner with a company to
help come up with the design for our shoes so we have the newest
and highest demanded shoe designs.
People
• Staff: The company will be structured similarly to other
companies like ours. We will also need legal, accounting, training
and advisory staff.
Premises and Logistics
• Where we will trade from: At first our shoes will be sold through our website.
As we grow and are able to accommodate capacity, we will maybe open a store
front and sell to more retailers.
• Transport needs: The transportation needs will vary on who is purchasing the
shoes.
• For customers: We will ship their shoes through one of the major shipping companies.
• For retailers: We will have to ship the shoes through a means of shipping that can handle
larger quantities of items. We may have to use semi trucks or trains. This all depends on
the size of the order.
• For Volunteers: We will have to either have the volunteer pick the shoes up at our
website or have a cargo van at our company in which we can drop the shoes off at their
volunteer location.
• Where will we store goods: We will store goods in our warehouse which will be
attached to our manufacturing plant.
Marketing and Public Relations
• Marketing: At first we will rely on social media, trade shows and
word of mouth for marketing. As we grow we will put more money
into marketing and probably utilize a marketing firm or hire
someone for marketing.
Legal Issues
• Illegal raw materials: There are certain exotic animals skins that
can not be used to manufacture shoes.
Finances Projections
• As of now we are too early in the process to have and financial
projection that would have any truth to them. We cannot provide
startup cost since we have not determined where our location will
be and the cost of the building will vary due to where they are
located. The only startup cost I am able to determine so far is the
cost to build the warehouse which will be $3,080,500.00.
Financial Management and Reporting
• This will change as we get further along in the process of actually
opening the company.
• We will have an accountant in place to oversee everything. With
an accountant in place we can catch problems early on before the
get out of control.
• Our financial statement will be prepared every month just so we
can stay on top of things and know how much money is in the
company and how much is not.
Sources of Finance
• Most of our initial money will come from investors and friends and family. Banks
will most likely not lend us money since the American shoe manufacturing
market is expected to decline as shown in this chart.
Revenue of the shoe and footwear manufacturing
industry in the United States from 2012 to 2017 (in
million U.S. dollars)
$1 800,00
$1 600,00
$1 400,00
2012
2013
2014
2015
2016
2017
Revenue of the shoe and footwear manufacturing industry in the United States from 2012 to 2017
(in million U.S. dollars)
Social Accounting
• The first thing I would like to do is include a ticker on the website
that shows how many shoes we have given to children.
• I would also like to include a ticker that shows the amount of jobs
we have created.
• If the employees don’t mind I would like to include a section on
the website that gives their story and tells how the new job has
changed their lives.