WISDOM COLLEGE
DEPARTEMENT OF ACCOUNTING AND FINANCE
A BUSINESS PLAN ON:
SHOE MANUFACTURING
(HOPE SHOE AND FOOTWEAR)
By: Ayantu Sanbato
Id. No:___________
November, 2022
Ashewameda, Oromia
Contents Page
SHOE MANUFACTURING BUSINESS PLAN........................................................................................1
1. EXECUTIVE SUMMARY...............................................................................................................1
Introduction...............................................................................................................................................1
1.1. Product Offering........................................................................................................................2
1.2. Vision Statement........................................................................................................................2
1.3. Mission Statement......................................................................................................................2
1.4. Business Structure.....................................................................................................................2
1.5. Strength......................................................................................................................................3
1.6. Weakness................................................................................................................................3
2. MARKET ANALYSIS......................................................................................................................3
2.1. Market Trends...........................................................................................................................3
2.2. Our Target Market....................................................................................................................4
3. SALES AND MARKETING STRATEGY......................................................................................4
3.1. Sources of Income......................................................................................................................4
4. MARKETING STRATEGY AND SALES STRATEGY...............................................................5
4.1. Pricing Strategy.........................................................................................................................5
4.2. Payment Options........................................................................................................................5
5. START – UP EXPENDITURE (BUDGET).....................................................................................6
SHOE MANUFACTURING BUSINESS PLAN
1. EXECUTIVE SUMMARY
Introduction
Hope Shoes & Footwear, Inc. is a standard and registered shoe & footwear manufacturing
company that will be located in Ambo; in an ideal location highly suitable for the kind of
business I want to establish. I have been able to lease a facility that is big enough (a 5 thousand
square foot facility) to fit into the design of the kind of standard shoe and footwear
manufacturing company that I intend launching.
Hope Shoes & Footwear, Inc. will manufacture a wide range of footwear for men, women and
children. I will be involved in manufacturing shoe and footwear in different forms such as rubber
and plastic footwear, protective footwear (Safety boots), house slippers and slipper socks. I am
set to services a wide range of clientele not just in the Ambo, but also all parts of Oromia region.
I am aware that there are several large and small shoes and footwear manufacturing companies
all around Oromia region, which is why I 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.
Hope Shoes & Footwear, Inc. will ensure that all the shoes and footwear that leaves of factory
are of the highest quality and highly durable and affordable. I will ensure that I hold ourselves
accountable to the highest standards by meeting our customers’ needs precisely and completely
whenever they patronize our products. I will cultivate a working environment that provides a
human, sustainable approach to earning a living, and living in our world, for our partners,
employees and for our customers.
Hope Shoes & Footwear, Inc. is a family business that is owned by Ayantu Sanbato and her
immediate family members. Hope Shoe and Footwear, Inc. owner has a BA Degree in Business
Management. I will be bringing in our vast hands – on experience to Hope Shoes & Footwear,
Inc.
Page 1
1.1. Product Offering
Hope Shoes & Footwear, Inc. is in the shoe and footwear manufacturing industry to manufacture
a wide range of footwear for men, women and children. I will be involved in manufacturing shoe
and footwear in different forms such as rubber and plastic footwear, protective footwear (Safety
boots), house slippers and slipper socks. I will set to services a wide range of clientele not just in
Ambo city Administration, but also all parts of Oromia region and of course to make profits,
which is why I will ensure I go all the way to give our clients and potential clients options.
I will do all that is permitted by the law of Ethiopian business license to achieve our business
goal, aim and ambition of starting the business. My product offerings are listed below;
Manufacturing of rubber and plastic Manufacturing of ballet slipper
footwear Manufacturing of cleated athletic
Manufacturing of house slipper shoes
Manufacturing of athletic shoes Manufacturing of other footwear
1.2. Vision Statement
My vision is to become the leading brand in the shoe and footwear manufacturing industry in
Ambo city Administration and to establish a one stop shoe and footwear manufacturing
company.
1.3. Mission Statement
My mission is to establish a world – class shoe and footwear manufacturing company whose
products will not only be retailed in the Ethiopia, but also be exported to other countries of the
world.
1.4. Business Structure
Hope Shoes & Footwear, Inc. do not intend to start a shoe and footwear manufacturing business
like the usual small scale shoe and footwear craft shops around the street corner; my intention of
starting a shoe and footwear manufacturing company is to build a standard and one stop shoe and
footwear manufacturing company in Little Oromia; Ambo.
Although my shoe and footwear manufacturing company might not be as big as Ambessa, Puma,
Adidas, Peackok and Kegna, but I will ensure that I put the right structure in place that will
support the kind of growth that I have in mind while setting up the business.
Page 2
I will ensure that I 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 stake holders (the owners,
workforce, and customers). 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 two years or more.
1.5. Strength
My core strength lies in the high quality of our finished shoes and footwear, the power of our
team and the state of the art and well – equipped shoe and footwear manufacturing factory that
we own. I have a team of highly trained and experienced shoes and footwear designers and
makers and support staff members that can go all the way to produce top notch shoes and other
footwear.
1.6. Weakness
A major weakness that may count against us is the fact that I am a new shoe and footwear
manufacturing company and I don’t have the financial capacity to compete with multi– million
profitable shoe and footwear manufacturing companies such as Nike, Puma, Adidas, Ambessa
and Peackok when it comes to manufacturing shoes and footwear at a rock bottom prices. So
also, I may not have enough cash reserve to promote our shoe and footwear manufacturing
company the way I would want to do.
2. MARKET ANALYSIS
2.1. 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 shoe and footwear manufacturing companies depends on their ability
to design and market shoe models that effectively target consumers’ tastes and preferences.
Large shoes and footwear companies have economies of scale in distribution and marketing
and small scale shoes and footwear companies can compete successfully by crafting customized
shoes and footwear based in their client’s preference. Going forward, shoes and footwear 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,
Page 3
primarily due to a drop in the amount of people living in extreme poverty. 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, shoe and footwear manufacturing companies now
ensure that they have showrooms at different locations where they display their shoes and
footwear. As a matter of fact, it is even cheaper to purchase directly from this showrooms
established by shoe and footwear manufacturing companies as against purchasing from shoe and
footwear retail cum departmental stores. It is a strategy that helps them increase sales and income
for their business.
2.2. Our Target Market
Perhaps it will be safe to submit that the shoe and footwear manufacturing industry is
amongst one of the industry that has the widest range of customers; almost everybody on planet
earth need one form of footwear or the other. It is pretty difficult to find someone in the United
States and of course in other developed countries that don’t have shoes and other footwear.
In view of that, I have positioned our shoe and footwear manufacturing company to service the
clientele in the United States of America and other parts of the world. I have conducted our
market research and feasibility studies and I have ideas of what our target market would be
expecting from us.
I, in the shoe and footwear manufacturing industry to manufacture a wide range of shoes and
footwear for the following people; men, women, children and babies.
3. SALES AND MARKETING STRATEGY
3.1. Sources of Income
Hope Shoes & Footwear, Inc. is in business to manufacture and retail a wide range of shoes and
footwear in Oromia region and other parts of the world. I am in the shoe and footwear
manufacturing industry to maximize profits and I am going to go all the way out to ensure that I
achieve or business goals and objectives.
Page 4
3.2. Sales Forecast
One thing is certain when it comes to shoe and footwear manufacturing business, if you are into
the manufacturing or various types of shoes and footwear, you will always attract customers cum
sales and that will sure translate to increase in revenue generation for the business.
Below are the sales projection for Hope Shoes & Footwear, Inc., it is based on the location of our
business and other factors as it relates to shoe and footwear manufacturing start – ups in the
Ambo; oromia region;
First Fiscal Year-: 350,000 birr
Second Fiscal Year-: 750,000 birr
Third Fiscal Year-: 1 million birr
4. MARKETING STRATEGY AND SALES STRATEGY
Before choosing a location for Hope Shoes & Footwear, Inc. I conduct a thorough market survey
and feasibility studies in order for us to be able to be able to penetrate the available market and
become one of the preferred choice for consumers not only in Ambo, but also throughout the
Oromia region.
4.1. Pricing Strategy
Aside from quality, pricing is one of the key factors that gives leverage to shoe and footwear
manufacturing company, it is normal for consumers to go to places (shoe and footwear
manufacturing companies and showrooms) where they can get shoes and other footwear at
cheaper price.
4.2. Payment Options
Here are the payment options that Hope Shoes & Footwear, Inc. will make available to her
clients;
Payment via bank transfer Payment via check
Payment with cash Payment via bank draft
Page 5
In view of the above, I have chosen banking platforms that will enable our client make payment
for farm produces purchase without any stress on their part.
5. START – UP EXPENDITURE (BUDGET)
In setting up any business, the amount or cost will depend on the approach and scale you want to
undertake. If you intend to go big by renting / leasing a big facility, then you would need a good
amount of capital as you would need to ensure that your employees are well taken care of, and
that your facility is conducive enough for workers to be creative and productive.
I would need an estimate of 96,200 birr to successfully set up our shoe and footwear
manufacturing business in Ambo. Please note that this amount includes the salaries of all the
staff for the first month of operation.
Page 6
