Starting a sunglasses business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful sunglasses business.
Importantly, a critical step in starting a sunglasses business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here.
14 Steps To Start a Sunglasses Business:
- Choose the Name for Your Sunglasses Business
- Develop Your Sunglasses Business Plan
- Choose the Legal Structure for Your Sunglasses Business
- Secure Startup Funding for Your Sunglasses Business (If Needed)
- Secure a Location for Your Business
- Register Your Sunglasses Business with the IRS
- Open a Business Bank Account
- Get a Business Credit Card
- Get the Required Business Licenses and Permits
- Get Business Insurance for Your Sunglasses Business
- Buy or Lease the Right Sunglasses Business Equipment
- Develop Your Sunglasses Business Marketing Materials
- Purchase and Setup the Software Needed to Run Your Sunglasses Business
- Open for Business
1. Choose the Name for Your Sunglasses Business
The first step to starting a sunglasses business is to choose your business’ name.
This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your own business:
- Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
- Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
- Think about marketing. Come up with a name that reflects the desired brand and/or focus of your sunglasses business.
2. Develop Your Sunglasses Business Plan
One of the most important steps in starting a sunglasses business is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.
Your business plan should include the following sections:
- Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your sunglasses line.
- Company Overview – this section tells the reader about the history of your sunglasses business and what type of quality sunglasses business you operate. For example, are you a retail store, an online retailer, or a sunglasses manufacturer?
- Industry Analysis – here you will document key information about the sunglasses industry. Conduct market research and document how big the industry is and what trends are affecting it.
- Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products like the ones you will offer?
- Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
- Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
- Product: Determine and document what products/services you will offer
- Prices: Document the prices of your products/services
- Place: Where will your business be located and how will that location help you increase sales?
- Promotions: What promotional methods will you use to attract customers to your own sunglasses line? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
- Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
- Management Team – this section details the background of your company’s management team.
- Financial Plan – finally, the financial plan answers questions including the following:
- What startup costs will you incur?
- How will your sunglasses business make money?
- What are your projected sales and expenses for the next five years?
- Do you need to raise funding to launch your business?
3. Choose the Legal Structure for Your Sunglasses Business
Next you need to choose a legal structure for your sunglasses business and register it and your business name with the Secretary of State in each state where you operate your business.
Below are the five most common legal structures:
1) Sole proprietorship
A sole proprietorship is a business entity in which the owner of the sunglasses business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.
A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a sunglasses business together. The partners share in the profits and losses of the business.
The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.
3) Limited Liability Company (LLC)
A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a sunglasses business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.
4) C Corporation
A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a sunglasses business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.
5) S Corporation
An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.
Once you register your sunglasses business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.
4. Secure Startup Funding for Your Sunglasses Business (If Needed)
In developing your sunglasses business plan, you might have determined that you need to raise funding to launch your business.
If so, the main sources of funding for a sunglasses business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a sunglasses business that they believe has high potential for growth.
5. Secure a Location for Your Business
The first step in finding a location for your sunglasses business is to do some market research on your target area. Find some areas that have the highest concentration of people who would be interested in purchasing your product. Once you have determined the best location for your business, you will need to secure a commercial lease for a retail space.
6. Register Your Sunglasses Business with the IRS
Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).
Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.
Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.
7. Open a Business Bank Account
It is important to establish a bank account in your sunglasses business’ name. This process is fairly simple and involves the following steps:
- Identify and contact the bank you want to use
- Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
- Complete the bank’s application form and provide all relevant information
- Meet with a banker to discuss your business needs and establish a relationship with them
8. Get a Business Credit Card
You should get a business credit card for your sunglasses business to help you separate personal and business expenses.
You can either apply for a business credit card through your bank or apply for one through a credit card company.
When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.
Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.
9. Get the Required Business Licenses and Permits
To start a sunglasses business, you will need to obtain a business license and a permit to sell sunglasses. You may also need to obtain a license to manufacture sunglasses, depending on your business model. Check with your local business licensing authority to determine the specific licenses and permits you will need.
10. Get Business Insurance for Your Sunglasses Business
There are various types of insurance that are necessary to operate a sunglasses business.
Some business insurance policies you should consider for your sunglasses business include:
- General liability insurance: This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
- Auto insurance: If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
- Workers’ compensation insurance: If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
- Commercial property insurance: This covers damage to your property caused by fire, theft, or vandalism.
- Business interruption insurance: This covers lost income and expenses if your business is forced to close due to a covered event.
- Professional liability insurance: This protects your business against claims of professional negligence.
Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.
11. Buy or Lease the Right Sunglasses Business Equipment
To run your sunglasses business, you will need a computer with internet access, a phone, and a printer. If you plan to sell your sunglasses in a physical store, you’ll also need display stands to showcase your products. If you plan to manufacture your sunglasses, you’ll need equipment to make the products.
12. Develop Your Sunglasses Business Marketing Materials
Marketing materials will be required to attract and retain customers to your sunglasses business.
The key marketing materials you will need are as follows:
- Logo: Spend some time developing a good logo for your sunglasses business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
- Website: Likewise, a professional sunglasses business website provides potential customers with information about the products you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your own website will affect how customers perceive you.
- Social Media Accounts: establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your sunglasses business.
13. Purchase and Setup the Software Needed to Run Your Sunglasses Business
To start a sunglasses business, you’ll need some essential software. Accounting software will help you track your finances, while a point of sale (POS) system will help you manage your inventory and sales. You’ll also need a customer relationship management (CRM) system to keep track of your customers.
14. Open for Business
You are now ready to open your sunglasses business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.
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How to Start a Sunglasses Business FAQs
It can be hard to start any business, but it is easier when you have the right knowledge of what is expected. If you follow the steps above, you should be able to start your sunglasses business without too much difficulty.
The best way to start a sunglasses business with no experience is to do some research to identify your target market and what kind of sunglasses people want. Determine what type of sunglasses you want to sell and what kind of marketing tactics you will use. You may also want to read industry publications and network with people who have successfully started their own sunglasses business.
There is no definitive answer to this question as it largely depends on several factors including the target market, the level of competition, the prices of the products, and the manufacturing and distribution costs.
Generally speaking, businesses that sell high-end sunglasses products tend to be more profitable than those that sell lower-priced sunglasses. This is because the high-end market is typically less competitive, and the products can be sold at a higher price point. Additionally, sunglasses brands that manufacture their own sunglasses products typically have a higher profit margin than those that do not. This is because the former incur lower manufacturing and distribution costs.
The cost of starting a sunglasses business can vary depending on the scope of the operation. However, typically it costs anywhere from a few hundred to a few thousand dollars to get started.
The most common expenses for a sunglass business are marketing and inventory costs. Marketing costs include advertising, promotional materials, and website design and hosting. Inventory costs include the cost of the sunglasses themselves, as well as packaging and shipping materials.
A sunglasses business makes money by selling sunglasses at a higher price than what it costs to produce them. Another way is to sell replacement lenses or accessories such as cases. Other businesses enter an online sunglasses business to reach more customers.
There are a few reasons owning a sunglasses company can be profitable. First, sunglasses are a necessary accessory for many people during the summer months. Additionally, the cost of producing sunglasses is relatively low, so businesses can make a healthy profit margin on each pair sold. Finally, because sunglasses are small and easy to transport, they are relatively easy to store and ship, which keeps overhead costs down.
There are many reasons sunglasses businesses fail. Often, they do not have a unique selling point that makes them stand out from the competition. Additionally, they may not have a well-developed marketing strategy, leading to low brand awareness and poor sales. Another issue that can cause sunglasses businesses to fail is that they do not produce high-quality products that meet customer expectations. Finally, suppose sunglasses businesses do not have a strong online presence. In that case, they may struggle to reach and engage with potential customers.