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Table of Contents 
Ⅰ. Executive Summary​ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ​3

ⅠⅠ. Business Rationale​ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .​4

Customer Empathy​ . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Problem Statement​ . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Solution Statement​ . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Company Goals​ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

ⅠⅠⅠ. About the Business​ . . . . . . . . . . . . . . . . . . . . . . . . . . . ​5

Company Overview​ . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Mission Statement​ . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Organization​ ​ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
SWOT Analysis​ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

ⅠⅤ. External Environment​ . . . . . . . . . . . . . . . . . . . . . . . . . . . . ​8

Competitive Analysis​ . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Current Economic Conditions​ . . . . . . . . . . . . . . . . . . . . . . 9
Industry Analysis- Real and Virtual​ ​ ​. . . . . . . . . . . . . . . . . . . 9

Ⅴ. Marketing Plan​ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Target Market and Market Segmentation​ . . . . . . . . . . . . . . . . 10
Marketing Mix​ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Discussion of Business Risks​ ​ ​. . . . . . . . . . . . . . . . . . . . . . 12

ⅤⅠ. Financial Planning​ .. . . . . . . . . . . . . . . . . . . . . . . . . . . . ​12

Financial Write-up​ . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Break Even Analysis​ . . . . . . . . . . . . . . . . . . . . . . . . . 13
Sales Projection​ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Summary Profit and Loss Statement ​ .​ . . . . . . . . . . . . . . . . . 15
Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

ⅤⅠⅠ. Appendix​ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ​20

Bank Account Statement . . . . . . . . . . . . . . . . . . . . . . . 20
Amortization Table for Active Loan . . . . . . . . . . . . . . . . 20

ⅤⅠⅠⅠ. ​Business Contract ​. . . . . . . . . . . . . . . . . . . . . . . . . . . . ​ 22

​Works Cited​ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ​ 24

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 Executive Summary 
 
An average teen, aged 17-18, owns over 19 pairs of shoes. As of 2018, the population of
teens in the United States is over 12.5 million, and they own about 237.5 million pairs of shoes.
The newest trend of Nike Air Force Ones has sold over 10 million pairs per year, with the
majority of its customers being teens. Due to this, Shoe Guru has brought a new spark to the shoe
trend, by giving its customers the freedom to customize their shoes.
Shoes are an integral part of putting together an outfit; however, popular brands like Nike
and Foot Locker offer bland and repetitive colors and designs. Shoe Guru was created to help
individuals design shoes that match their creativity and personality. At Shoe Guru, we are
“stepping outside the box” by allowing our customers to personalize their shoes. We want our
shoes to emulate an individual’s personality and creativity.
Our mission is simple: offer personalized footwear at a reasonable price. The world is
filled with blandness and conformity, but we encourage our clients to add more uniqueness to
their shoes.
On November 15, 2019 we will be dropping our first collection as a new company. Over
the holiday season, our clients can expect many new products. Our shoes are priced in the range
of $285-$305 to ensure our shoes keep true to our objective of being affordable to our customers.
As a business, we are targeting a specific demographic: VEI students, who are usually
17-18 years old. These individuals are more likely to wear customized shoes, want high-quality
products, and spend their money on shoes. Our company does not solely focus on individuals
who are obsessed with shoes, but we aim to attract people with various interests.
On October 21st, we launched Shoe Guru, and we have worked tirelessly hoping to turn
our visions into realities. We have big goals and strong beliefs about the potential that our
company can reach. We are continuing to work on small details ranging from our logo to our
product lines and pricing.
As a small start-up company, we want to donate a portion of our profits to local
organizations in Chicago, specifically Share your Shoes. This is a charity based in Chicago
which takes donations of gently-worn shoes and donates them to where they are most needed

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around the world. We believe this is a great organization to associate with as they are helping
people in need, while also meeting our mission of spreading our ideas through shoes. We want
all individuals to feel confident in their custom pair of Shoe Guru shoes. At our headquarters, we
hope to sell around 1850 pairs at around $294.99 per unit to break-even this year and give back
to our community as soon as possible.
Through our hardwork and dedication, we are ready to tackle the endless possibilities
presented to us. Our strong marketing and advertising techniques will spread Shoe Guru around
the world and allow people to express themselves through their shoes.

Business Rationale
Customer Empathy:
The company’s target market consists of VEI students, who are usually 17-18 years old.
Over 15 million people in the United States fit into this category and are looking to blend
creativity and uniqueness into their outfits. As a result, Shoe Guru encourages customers to build
self-confidence by allowing them to design their own shoes, or choose from pre-set designs.
Our target market is perfect for Shoe Guru, as more than half of Nike’s sales for Air
Force Ones are from individuals ages 17-18. Since most of VEI students are in this age group,
we expect our sales to increase.
Shoe Guru always goes the extra mile and places customers first. Due to this, we will
replace wrong orders free of charge. Keeping customers satisfied is important, and we want to
adopt the holiday spirit by adding seasonal products and lowering prices to boost sales. In
addition, our clients can enter their designs into our competitions and have the possibility of their
design being available for other clients.

Problem Statement​:
Average shoe brands do not offer unique and creative designs, thus leaving teens feeling
average and restricted.
Solution Statement​:
We allow our customers to customization their shoes to match their personality, as a
result, increasing their confidence.

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Company Goals:
1. Goal #1: Expand our product line
Once the Nike Air Force Ones are popular among our customers, Shoe Guru
intends to expand its product line by adding a wider variety of customizable
shoes: Vans, Adidas, Fila.
2. Goal #2: Donate to local organizations
After meeting the break-even point within 2 years, we will donate 5% of our
profits to local homeless organizations in Chicago, and donate customized Shoe
Guru products.
3. Goal #3: Provide the best customer service
Shoe Guru wants its employees to always go the extra mile to ensure customer
satisfaction and will encourage its customers to take surveys. We will provide
exceptional service and we expect our employees to maintain customer ratings
above 95%​.
4. Goal #4: Implement a new accessories line
Shoe Guru is currently researching newer products to add to our collection. We
want our company to provide customers with the necessary accessories for all
their shoe needs.

About the Business

Company Overview:
Shoe Guru intends to be a popular destination that exists to create experiences where
creativity and affordability come together. Shoe Guru was founded with a unique spirit and to be
the brand that truly stepped out of the box. Our company specializes in customizing shoes while
ensuring our prices are accessible to the masses. We have become experts at personalizing shoes
for our valued customers to help them emulate their creativity.
Shoe Guru filed as an S Corporation with a loan of $100,000 for 6 months with an
interest rate of 4.75%. With the loan processed, we officially became a business on October 21st,
2019. Part of Virtual Enterprises International, Shoe Guru plans on attending many tradeshows
to increase our revenue and continue to become a popular brand.

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 We have established a culture that supports our employees, so they can provide
exceptional service to our valued customers. As a result, Shoe Guru allows its employees to
design Air Force Ones for our customers, and for every shoe that is sold from the pre-set list the
employee receives a portion of the sales.

Mission Statement
Our mission is simple: offer personalized footwear at a reasonable price, while leading the way
for high quality products.

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SWOT Analysis
Strengths
● Strong appeal to a fashion-forward generation (generation Z), because the shoes are
currently very popular.
● Target markets have consistent engagement in social media which provides the company
an advantage to advertise.
● Designs are always changing, which will result in people coming back to buy different
designs that they did not previously have.

Weaknesses
● Gen Z exhibits less brand loyalty
● Young adults are less likely to spend large amounts of money on shoes
● Shoe Guru has a small creative team which may limit the quantities of different designs

Opportunities
● Festive Events - events allow the company to roll out special themed shoes catered to that
specific event.
● Tennessee & Rosemont Trade Shows- Brings an opportunity to branch out the products
and meet new potential prospects.
● Sales Presentations- At these trade shows we are given the opportunity to talk to outside
people in order to increase sales.
● Emailing/mailing small gifts or deals.
● Tennessee Trade Show Raffle gives the opportunity for customers to buy shoes as well as
enter a raffle. This will increase sales as well as increase the amount of customers.

Threats
● Other competing shoe brands

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 ● Teen trends are fluctuating
● Consistency with purchases, won’t have a constant demand 

 
External Environment
Virtual Competitive Analysis
● Small market niche for custom shoes, the company holds little to no competition.
● The Clothing & Accessories marketplace is mainly targeted towards custom outfits, and
accessories such as luggage and backpacks, scarcely any shoe focused companies.
● Shoe Guru differentiates from competition because our company uses only air force ones
that will be customized and tailored to every person's needs. Our firm also offers unique,
limited edition shoes for each season that other custom shoe businesses do not provide.

Current Economic Conditions

● Employment Rate: As of May 2019, the US has an unemployment rate of 3.6%,
correlating to an employment rate of 96.4%
● Interest Rates: Currently interest rates are between 1.5-1.75%
● Inflation Rate: 1.7%
● GDP: As of December 2018, the GDP was $20.5 trillion
● GNP: As of July 2019, 19.3 trillion
● Balance of Trade: The US trade deficit is 54 billion as of July 2019
● Exchange Rate (Euro): 1 US dollar = 0.9 Euro

Industry Analysis- Real and Virtual

● Real
○ The price of the AF1’s that Nike wholesalers offers matches up with the real life
costs, making our company factual instead of having false values of money we are
spending to buy the shoes.

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 ○ In the real world, there would be an abundance of companies selling clothing
items and accessories across the globe, in the VEI business we can experience this
with the few businesses that are competing with us in the clothing category.
○ The competitive pressure in actuality will compare greatly to the virtual world, as
we are taking what we sell and trying to market it against other companies.
○ A current challenge that would compare to reality is the task to get money in
order to start our business, without entering debt at a cautious level.
○ The cost and competitive nature of VEI will impact our firm by bringing in profit
and inspire students to work hard in a day to day business setting.
● Virtual
○ Compared to the other virtual firms, we are one of the only companies who are
looking to sell custom Air Force Ones, the only noticeable firms for right now
that also provide shoes for the VEI consumers are Brillare in Saint Charles, Il.
○ Our Air Force Ones are being priced around $250-$300, making this a profitable
product because of the low price we are purchasing the shoes for from the
wholesalers.
○ The customers will be able to acquire these items easily, the shoes are fairly
priced and a good buy when noticing that they are a popular product. Not to
mention this product will be loved by our customers because of the high demand
the Air Force Ones hold this year.

Marketing Plan 
Target Market & Market Segmentation
The Target Market is aimed toward VEI students that are:
● Male and Female
○ Various selections of shoes suited to both genders and a wide range of unisex
sneakers.

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● Gen Z
○ The Gen Z crowd has always been surrounded by the latest and greatest, and
trends in many aspects of their life, so new custom presets are a new trend they
will appeal to.
● Demographics
○ Age
■ 16-18 years old
○ Race
■ No specific race
○ Gender
■ Male and Female
○ Education
■ No specific education required, however more people who are currently in
high school will appeal to the product line.
● Geographics
○ Students are internationally targeted and not limiting sales to specific locations.
Regardless of the season, sneakers are a very popular fashion statement and are
still in demand.
● Psychographics
○ Enjoys streetwear pages on social media
○ Values the worth of brands
○ Trending lifestyle
○ Likes to be presentable
● Behavioral/Socio-Economics
○ Enjoys physical activities such as sports and outdoors
○ Likes to be fashionable with the latest trends but also would like to stand out from
everyone else
○ Enjoys shopping

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Marketing Mix
● Place
○ Via website/social media
○ At trade shows
■ Tennessee Nov 17-18
■ Great Lakes Feb
● Product
○ Air Force 1 High Top
○ Air Force 1 Low Top
● Price
○ Low Top: $284.99
○ High Top $304.99
● Promotion
○ Social Media
■ Market the product between two social media platforms
● Instagram
● Twitter
○ Market any products and incentives via email or newsletter
● Seasonal Drops
○ Release a new seasonal product every 15th of the month on the website, prior to
the season arriving

Positioning
● “Trending” image
● Positioned to be iconic and exclusive
● Premium

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Discussion of Business Risks
● Potential risk of not having enough sales to meet break even analysis
● Creative department may have limits to the designs they are able to produce
● Competition may have the same concepts and have better pricing
● Due to limit of selection of silhouettes, consumers may not be purchasing products
consistently

Financial Planning

Financial Write-up
The idea of Shoe Guru quickly came to our minds as we took a look at some of the top
current day trends in fashion culture. With our target market being other VEI students, we
immediately knew that custom shoes would be a success and have no problem generating sales
to other 16-18 year old students. Our mark-up on the shoes is fairly high allowing us to turn a
good amount of profit on each sale. We see this being supported in our break-even analysis and
income statement.
Shoe Guru started the year off with only $10,703.65 in our bank account, which is being
used for payroll, rent, and utilities until we start to make a profit. We currently have $102,069.27
after receiving a $100,000 loan and $20,000 in seed money from VE. We have already paid our
first pay period’s payroll, and purchased our initial inventory. As we begin to make sales our
balance will rise.

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Break Even Analysis

The break-even analysis takes into account all of the expenses of Shoe Guru and compares them
with the revenue we make from selling a certain number of products. With our two different shoe
products, the average price of the two comes out to be $294.99, which is what price the graph
uses per unit sold. The break-even point for Shoe Guru will occur after about 1,842 units sold,
which will amount to be $543,141.24 in sales.

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Sales Projection

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Of our 2000 projected unit sales, about 63% of these sales will come in the months of November,
December, and February. Why we see these three months being our most successful is due to
trade shows and holidays. Shoe Guru will be taking a trip to Tennessee in November, and
Rosemont in February, where we hope to make connections with other firms in order to increase
our sales. Similar to any other retail company, a large amount of our sales will come in
December due to the holiday season. We hope to take advantage of the holidays as we plan to
make design unique seasonal shoes.

Summary Profit & Loss Statement

Projected Total Revenue: ​$589,980

- Based off of 2000 projected unit sales in Break Even Analysis
Costs of Goods Sold: ​$56,100
- Average cost of goods sold per sale is $28.05
- $28.05 * 2000 = $56,100
Gross Profit: ​$533,880
- Total Revenue - Cost of Goods Sold
- $589,980 - $56,100 = $533,880
Gross Profit Margin %: ​90.49%

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 - Gross Profit / Total Revenue
- $533,880 / $589,980 = .9049
Operating Expenses: ​$491,495.04
- Annual fixed cost from Break Even Analysis
Net Income: ​$42,384.96
- Gross Profit - Operating Expenses
- $533,880 - $491,495.04 = $42,384.96

Our Summary Profit & Loss Statement gives a look into the future numbers of Shoe Guru based
on projections. After calculating our projected total revenue and costs of goods sold, Shoe
Guru’s gross profit is projected to be around $533,880. After paying our operating expenses,
Shoe Guru’s projected net income is $42,384.96. As any company would, we hope to exceed
these projections throughout the year.

Balance Sheet

Shoe Guru
Balance Sheet
As of October 31, 2019
Assets

Current
Assets
Cash 102,069
Accounts
receivable 0
Shipping 64
Merchandise
Inventory 5,064
Supplies 5,280
Initial
Inventory 5,133

Total Current
Assets 117,610

Fixed Assets

Computers 4,145

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Less:
accumulated
depreciation 0
Furniture
and fixtures 9,914
Less:
accumulated
depreciation 0
Office
equipment 1,406
Less:
accumulated
depreciation 0

Total Fixed
Assets 15,465

Total Assets 133,075

Liabilities
and
Stockholder
s' Equity

Current
Liabilities
Accounts
payable 0
Loan Payable 100,000
Interest
Payable 0
Salaries
payable 0
Social
Security
Payable 1,902
Payroll Taxes
Payable
Matching SS
Tax Payable 1,902
Matching
Medicare
Tax Payable 445
Unemploym
ent Tax 1,902

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Payable -
Federal
Unemploym
ent Tax
Payable -
State 1,656
Medicare
Tax Payable 445
FWT Payable 3,168
SWT Payable 1,655
401(k)
payable 0.00

Total Current
Liabilities 113,075

Total
Liabilities 113,075

Stockholders'
Equity

Common stock, $10 par value, * # shares issued 20,000

Retained
earnings

Total
Stockholders'
Equity 20,000

Total
Liabilities and
Stockholders'
Equity 133,075

The Balance Sheet as of October 31 reflects the total assets of Shue Guru as well as the
corresponding liabilities and stockholder’s equity accounts. The current value of the assets and
their related accounts is $133,075. Cash and all other accounts are reflective of the purchases,
payroll, and existing supplies of the business. Balance Sheets will be updated at the end of each
month to reflect the activity of the business within the designated period. 
 

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 Appendix 
 
Screenshot of Bank Account Statement as of October 31

Amortization Table for Active Loan

Loan Amortization Schedule © 2008 Vertex42 LLC

By
Vertex42.com HELP

Loan Inputs [42]

Loan Amount $100,000.00
Term of Loan in Years 1
Annual Interest Rate 4.75%
Compound Periods 1
Periods (Payments) Per Year 6
Summary of Results
Monthly Payment $17,122.51
Number of Payments 6
Rate Per Period 0.776%
Total Payment $102,735.05
Total Interest $2,735.05 [42]

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 Monthly Amortization Schedule
Cumulative  Monthly  Monthly 
Month Cumulative Interest Balance Payments Payments Interest
$102,735
November 455.84 85,612.55 17,122.51 17,122.51 455.84
December 911.68 68,490.04 34,245.02 17,122.51 455.84
January 1,367.52 51,367.53 51,367.53 17,122.51 455.84
February 1,823.36 34,245.02 68,490.04 17,122.51 455.84
March 2,279.20 17,122.51 85,612.55 17,122.51 455.84
April 2,735.04 0.00 102,735.06 17,122.51 455.84

This is a table of how our company plans to pay off our loan of $100,000 over the 6 months that
we will be running. We have included interest in our calculations and how this money will
accumulate over time.

2590 Ogden Avenue, Aurora IL

630-375-3300
630-375-3552
shoeguru.il@veinternational.com

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 Business Contract

This agreement is effective as of date of agreement, between (Business Name) and Shoe Guru
from (Dates of Agreement). The parties hereby agree to the following terms and conditions:

DESCRIPTION OF SERVICE/SUPPLIES:
We are a shoe company which is dedicated to helping everyone display their ideas through their
shoes. We take Nike AF1’s, and add layers of different designs and colorways, which make
them as interesting as they can be. We also have seasonal drops, with different designs fitting
different seasons and holidays.

(Business Name) hereby agrees to purchase the items below, supplied by Shoe Guru

Item 001 Quantity Unit Price ($) Extended Price (S)

Rims
FLY AF1 (PR0001) 82
Sunny AF1 (KR0002)76
Designer AF1 (ER0003)
Struck AF1(VR0004) 62
Drip II AF1(FR0005) 66
284.99 16,992.00
284.99 23,187.00
284.99 275.43 17,903.00
284.99 53,453.00
304.99 61,387.00

TERMS AND CONDITIONS - This contract agreement may be cancelled with 90 days (or other
terms) written notice. The period of this contract is (can be for a one-time purchase, or for
monthly purchases for one year or more) from the effective date unless modified in writing 90
days in advance on any agreed delivery dates stated in the agreement. Title and ownership of
this agreement is non-transferable to any other party.

Shoe Guru guarantees delivery of the quantities and items stated above in accordance with the
terms and conditions stated in this agreement. Shoe Guru hereby agrees to honor the firm-fixed
prices stated above during the period of the contract agreement with no consideration for
economic price adjustments. (unless other terms are agreed upon)

CANCELLATION – The Contract may not be cancelled without the written agreement of both
parties. Any party defaulting on the stated terms will incur the costs associated with recovery
and all associated litigation fees.

RENEWABLE OPTIONS – During the final period of this agreement, either party may offer to
negotiate optional years.
CORPORATE COMMITMENT – By signing this agreement, the (Business Name), hereby
agrees to offer the expertise of its officers as advisors to (Virtual Enterprise Firm Name). This
mentoring will assist in the successful operations of (Virtual Enterprise Firm Name), thus
protecting your valued investment in our product.
The signatures below represent the authority to fully execute this agreement.

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____________________________________________
__________________________
Signature of (Business Name) Date
____________________________________________
__________________________
Printed Name / Title Phone Number
____________________________________________
Signature of (Business Name) Representative
____________________________________________
__________________________
Printed Name / Title Phone Number
____________________________________________
__________________________
Signature of (Virtual Enterprise Firm Representative) Date
_____________________________________________
__________________________
Printed Name and Title Phone Number

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 Work Cited 
 
Accounting

“FIN Task 9 - Prepare Monthly Sales Projections.” Virtual Enterprises International,

canvas.veinternational.org/courses/239/pages/fin-task-9-prepare-monthly-sales-projections
?module_item_id=63838.

“TRADING ECONOMICS: 20 Million INDICATORS FROM 196 COUNTRIES.”

TRADING ECONOMICS | 20 Million INDICATORS FROM 196 COUNTRIES​,
tradingeconomics.com/.

HR
https://censusreporter.org/profiles/01000us-united-states/
https://www.nydailynews.com/life-style/shoes-shoes-article-1.286381

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