Opening a skate shop is a dream for many skaters, a way to contribute to the community and immerse oneself in the culture. However, it’s a challenging endeavor requiring careful planning, significant capital, and a deep understanding of the skateboarding world. This guide, compiled from insights of successful shop owners, will provide you with the necessary knowledge to navigate this exciting but complex journey.
A header image with the text "Guide to Skate Shop" and a skateboarder graphic
Finding the Right Location
As the saying goes, “Location, location, location,” and this holds true for skate shops. The ideal location is an affordable space with high foot traffic, attracting both skaters and non-skaters. While having a core skate audience is crucial, the general public will also contribute significantly to sales. Consider proximity to local skate spots and parks to become the go-to shop for the local skate community. For example, Crushed Skate Shop in Washington D.C., strategically chose a location near a popular skate spot. However, be mindful of other skate shops nearby to avoid brand conflicts and local competition.
Choosing a Memorable Shop Name
Your shop’s name and logo are key to its identity. It’s something you’ll see daily and use on merchandise, so make it impactful. KCDC Skate Shop in Brooklyn, with its short, mysterious acronym, is a great example. Simple, memorable names, often acronyms or single words, are best. Avoid overly complex names that might not stick with customers.
Securing the Necessary Capital
Opening a skate shop requires substantial investment. Primary Skate Shop in Canada suggests a minimum of $100,000 for a proper start-up. Voyageur Goods humorously notes that you can watch that sum disappear quickly. This money is necessary for stock, rent, store renovations, equipment, e-commerce setup, and employee wages. While Mom’s Skate Shop opened with less, under $25,000, this is rare. Be prepared for the costs before you open. Having enough capital is crucial for securing accounts with major brands like Nike, Vans, and Adidas.
Navigating the Legal Aspects
Opening a business involves dealing with paperwork and legal requirements. This includes signing a commercial lease, obtaining an EIN number for tax purposes, and getting a sales license. It’s important to seek help from legal professionals or those familiar with these processes. Consider reaching out to skaters who work in relevant fields. Also, keep all your paperwork organized.
Designing Your Shop’s Interior
When designing your shop’s layout, keep in mind space and budget limitations. Essential elements include an accessible board wall, counter space for displaying hardware, a shoe wall, and a point of sale system with a computer, card reader, and cash register. Voyageur Goods collaborated with a carpenter to create custom furniture and concrete countertops, enhancing the shop’s unique feel. Homebase has found success with shoes near the window and boards in the back, attracting all types of customers.
Stocking Your Shop with Hardgoods
Skateboarding is built on relationships. Building connections with brand reps and distributors will make it easier to stock your shop. Finding popular brands isn’t hard, but securing them for your shop can be tricky, especially if other local shops already carry them. If you encounter delays, consider third-party distributors like Eastern Skate Supply. Networking is crucial. Remember, “everyone is three degrees of separation,” as Primary Skate Shop said. Reach out to people, as the skate community is generally very interconnected.
A photo of a well-stocked skate shop with boards on the wall and display cases
Opening Sneaker Accounts
While some shops may choose not to have a sneaker account, it can be a major revenue stream. Crushed Skate Shop advises “Do what you can. Don’t overwhelm yourself.” On the other hand, Primary Skate Shop states, “You better have super low overhead if you [open without sneaker accounts]. Footwear is a big part of the business.” Dealing with sneaker brands, however, can involve corporate pressures and annual spending requirements. Be mindful of how limited-release shoes impact skate shops.
Hiring the Right Employees
As the shop owner, you’ll initially handle most of the work. When hiring, look for skaters who are part of the local community. Avoid hiring those unfamiliar with the culture, as it might lead to negative feedback from the community. Offer a living wage, and be honest about pay. Finally, hire people you can trust to run the shop when you’re away. This will greatly reduce your stress.
Understanding Profit Expectations
Don’t expect immediate profits. Voyageur Goods has stated that it will likely take more than a year to become profitable, given the overhead and cost of goods. Be prepared to be in the red for a while, as it can take time to get the shop running efficiently. Since selling only hardgoods can be the least profitable, many shops try to expand into a broader brand to transcend their physical location. However, this can be more difficult outside major skateboarding cities.
A photo of a skate shop employee assisting a customer
Maintaining a Healthy Work-Life Balance
Primary Skate Shop noted that a work-life balance “is pretty nonexistent,” and you must commit yourself fully. Yet, despite the hard work, shop owners express positive feelings about working in a field they love, surrounded by the community they are part of. Voyageur Goods uses the quote “Skating is a job. You do have to work at it. But in all reality, what would you rather do?” which represents the shared sentiment of dedication to the culture of skateboarding.
Building a Strong Community
Building a strong community is a critical part of a skate shop’s longevity. Being actively involved in the local scene, hosting events, hiring local skaters, and creating a welcoming atmosphere will help develop this sense of community. Think of the positive impact that your local skate shop had on you as a kid and recreate that atmosphere for your local community.
As a shop owner, you’ll also become part of the broader community of skate shop owners, allowing you to share experiences and support one another.
A photo of a skate shop interior with a view of skateboards and shoes
Opening a skate shop is a challenging but fulfilling undertaking. With careful planning, financial awareness, and a commitment to the local skate community, you can create a thriving space for skaters for years to come.
Words by: Larry Lanza
Illustrations by: Aubrey Fisch
Special thanks to the owners of Primary Skate Shop, Voyageur Goods, Crushed Skate Shop, Moms Skate Shop, and Homebase
