Start a running store by following these 10 steps:
- Plan your Running Store
- Form your Running Store into a Legal Entity
- Register your Running Store for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Running Store
- Get the Necessary Permits & Licenses for your Running Store
- Get Running Store Insurance
- Define your Running Store Brand
- Create your Running Store Website
- Set up your Business Phone System
There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your running store. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Exploring your options? Check out other small business ideas.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a running store?
Running shop owners are advised to lease a space less than 2000 square feet. Even if your vision is to occupy more space, working up to that will help keep your overhead expenses down until the business can support a larger store.
Once you’ve determined your location, you can start designing the space. There’s a few items you’ll need:
- Computer and software management system
- Marketing strategy and materials
- Foot and gait analysis system - while not required, this will help you better educate and serve your customers
Depending upon how large your store is and how much inventory you plan to order, total investment could range from $155,000 - $325,000. Fleet Feet Sports requires investors to have $180,000 - $338,000 to open a new franchise store.
What are the ongoing expenses for a running store?
Much like startup expenses, this will vary depending upon the specifics of how your organization is structured, how much inventory you carry, and how large of a space you occupy. Shop owners advise budgeting for between $5,000 and $19,000 per month.
Who is the target market?
The bulk of your business will come from experienced runners who regularly invest in their passion. You’ll meet sponsored runners, ultra marathoners, and those training for the next local race. They’ll all have one thing in common - they’re passionate about their sport and are always looking for that new product that will help them achieve a new personal best.
The second demographic your business should cater to is the novice runner and individuals involved in other sports. This is your opportunity to gain a new, regular client. When treated right and educated properly, many of these customers will realize a newfound passion, and have you to thank for it.
How does a running store make money?
As a retail store, your business will generate a profit through the sale of each item.
How much can you charge customers?
Pricing varies depending upon the product. Items are purchased at cost and marked up to ensure a reasonable return on your investment. If you’re inexperienced in pricing merchandise, ask your manufacturer for assistance.
How much profit can a running store make?
It’s important to remember that businesses spanning every industry report earning little to no profit the first year (up to three years). Successful running store owners, however, have reported a profit, earning up to $75,000 after the third year. The key is to keep up with the latest trends and offer those, particularly the items with a higher profit margin. Insole products average 55% profit, while compression socks and sleeves average 51% profit, so these are great items to stock your shelves with.
How can you make your business more profitable?
Running stores have found success implementing these strategies:
- Partner with local races. Participate as a vendor and sponsor races. This will increase the store’s visibility and assist in establishing a name for yourself within the community.
- Host fitness classes. There are a number of strength and yoga exercises that help build a runner’s stamina, strength, and speed. Plus, it’s a great way to support the social facet of running.
- Offer educational workshops that will help runners with training and injuries. Design them so there’s something for every skill level.
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Running Store Name Generator
When registering a business name, we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
It's very important to secure your domain name before someone else does.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your running store is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
- LLC Taxes
- Sole Proprietorship vs LLC
- LLC vs Corporation
- LLC vs S Corp
- How to Start an S Corp
- S Corp vs C Corp
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
Besides being a requirement when applying for business loans, opening a business bank account:
- Separates your personal assets from your company's assets, which is necessary for personal asset protection.
- Makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Open net 30 accounts
Net 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term.
NetMany net 30 credit vendors report to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our best net 30 vendors, guide and start building business credit.
Get a business credit card
Getting a business credit card helps you:
- Separate personal and business expenses by putting your business' expenses all in one place.
- Build your company's credit history, which can be useful to raise money later on.
Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a running store. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
In addition, certain local licensing or regulatory requirements may apply. For more information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Certificate of Occupancy
A running store is usually run out of a storefront. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
- If you plan to lease office space:
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a running store.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
- If you plan to purchase or build office space:
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for you business’ location to ensure your running store will be in compliance and able to obtain a CO.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a running store
As mentioned, the running community is very tightly knit. Your strongest marketing tool will be your time and attention. Many running stores organize group runs. This is an opportunity for runners of all levels to interact and learn from each other. Participating in these outings is a great networking opportunity in an informal setting. Take it a step farther and set this up as a running club, offering members a discount on store purchases.
Another great way to get your name out there is to sponsor runs. You could organize the run yourself, or invest as a sponsor in an established community race. Those really looking to give back to the community have found success partnering with a shoe manufacturer and sponsoring young athletes. High school runners are provided shoes and running gear in an effort to support their sports journey.
How to keep customers coming back
Word of mouth can be your strongest marketing tool (or your worst enemy), particularly in the running community. Consistently strong customer support and education is paramount to building and retaining a customer base. Customer service, however, is only part of the recipe for success. Quality products at every price point are also critical for your business’ long-term growth.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2022 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
Start a Running Store in your State
- District of Columbia
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
TRUiC's Startup Podcast
Welcome to the Startup Savants podcast, where we interview real startup founders at every stage of the entrepreneurial journey, from launch to scale.
This week's episode: Rachel and Frida, co-founders of fintech startup Debbie that has reinvented the debt-payoff process, share their story of overcoming obstacles to launch their company, secure funding, and navigate the rapidly changing startup ecosystem.
Is this Business Right For You?
While prior running experience isn’t required to run a successful running store, the entrepreneur with hands-on experience in the sport would be best suited for this business endeavor. Customers will seek your guidance on products available in the market, as well as training and nutrition advice. If you’re considering this new business venture and aren’t an adept runner, surround yourself with a retail team that is armed with the necessary information.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a running store?
The specifics of your day will vary, depending upon how you decide to structure your business and the specific services you decide to offer.
Most days will include the following activities:
- Track inventory and place orders
- Check displays to ensure everything is featured properly. Change out window displays.
- Consult customer to determine what product they’re shopping for. You’ll need to draw enough information out of them to adequately recommend the items best fitting their needs.
- Converse with customers regarding race training, upcoming races, and running injuries.
- Educate yourself so you’re able to converse with customers on the latest trends. This will also ensure your shop offers the trends that you stand behind and feel comfortable recommending.
- If local runners meet up for group runs at your shop, join in.
Initially, your role will also require you to perform the standard administrative duties. When you’re ready, the store manager can take over a majority of those duties.
What are some skills and experiences that will help you build a successful running store?
Success in the retail industry requires a commitment to customer satisfaction and strong interpersonal skills. From staff, to customers and vendors, your day will be spent interacting with others.
While running is a sport often achieved alone, it’s a tight knit community. Everyone inspires each other and cheers each other on as they work to achieve their goals. It takes a special person to believe in him/herself unwaveringly. However, this trait makes for the perfect running store owner, as that energy will be infectious, inspiring everyone around you. This drive will not only help others achieve their fitness goals, it will position you as a fitness leader in the community. This leadership will help your shop achieve long-term success.
What is the growth potential for a running store?
Runners enjoy the individualized attention they get when visiting a small, locally owned running store. Employees are able to provide quality service, spending as much time as necessary on each customer. For this reason, many store owners choose decide to keep their shop small.
That’s not to say, however, that there’s no growth potential. In larger cities, many entrepreneurs have found such success they were able to open multiple stores throughout their town and surrounding areas. Enterprises such as Fleet Feet Sports offer franchising opportunities to the right candidates. Investors receive the backing of an experienced, well-known organization, providing a leg up on the competition.
Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a running store?
The following are some tips from successful running store owners:
- While your store should start out fairly small, think big in terms of the inventory you carry. Invest in quality products, with price points that fit every budget.
- Keep up with the latest running shoe trends and reviews. Be sure to carry those items.
- Offer a flexible return policy. If a runner knows they can bring a pair of shoes back after a week’s worth of “test runs,” they’re more apt to invest in the shoe they really want. Just make sure the rules are clearly defined to avoid any damaged returns.
- Develop strong relationships with your vendors. Several shoe companies have made it their policy to accept returned shoes, regardless of their condition, if the customer wasn’t satisfied. They absorb the cost, at no penalty to the store owner.
- Talk to your manufacturers about making one of their catalogues readily available. Given the opportunity to peruse the catalogue home, many customers return with a sizable order.
How and when to build a team
Upon opening your doors, you could probably operate the store yourself. As the business starts to grow, however, you’ll need to start building your team. It is critical that staff members be passionate and knowledgeable about running and everything that it encompasses. Many entrepreneurs have found that hiring the high school students they sponsored is an affordable option.