Idea No. 165: is it profitable to produce shoe covers or not?

Entrepreneurs unfairly ignore the production of shoe covers, although this business idea really works. Now it is a large market with an ever-increasing volume of consumption. In 2020, the market volume in Russia exceeded 870 thousand units, the capacity in monetary terms was more than $5 million. It continues to grow, so new players also have chances.

In this regard, we will tell you in more detail how to launch your production and organize sales of goods, and we will provide details that are important for achieving success.

1. What are shoe covers? 2. Business on shoe covers: features and prospects 3. What are shoe covers made of? 4. Shoe cover manufacturing technology 5. Opening a shoe cover business: initial investment 6. Documents 7. Premises 8. Equipment 9. Personnel 10. Sales 11. Marketing and promotion 12. Profitability and payback: financial plan

What are shoe covers?

Shoe covers are protective covers, products that are put on shoes for hygienic purposes. They prevent contamination of interior spaces in medical institutions, factories, and laboratories.

They have a universal size: length 39+1 cm, height 14+1 cm. They come in different shapes - for ease of wearing.

Using shoe covers, a person not only does not bring dirt indoors, but also reduces the risk of the spread of pathogenic infections and microorganisms from the street. Shoe covers are waterproof (if their integrity is not compromised) and can be used during icy conditions - the material does not slip.

Business on shoe covers: features and prospects

The features of the Russian shoe cover market and the business for their production are as follows:

1. Equipment can be purchased at low prices.
2. The production process is simple and no special skills are needed.
3. The cost of shoe covers is low.
4. The product can be stored under normal conditions and does not deteriorate.
5. The products are disposable, therefore, each new trip to institutions where they are used requires the purchase of a new pair.
6. The volume of consumption and demand for goods is constantly increasing.
7. If you find wholesale buyers, you can be sure of consistently high revenue.

A few calculations

Now let's do some math. It will take you about 1.5 million rubles to implement the project. This amount includes:

• Purchase and installation of necessary equipment
• Purchase of consumables
• Registration of an enterprise (in this case, the optimal form of doing business is an individual entrepreneur; how to register an individual entrepreneur, read here -).

The production volume for an 8-hour shift will be 28 thousand pairs of shoe covers, i.e. with a 30-day work week, the monthly production forecast is 864 thousand pairs of shoe covers. Do you agree that this is very good, even at the low retail price of the product?

That's all for today. If you have any questions about the publication, or you want to discuss them with other readers, then leave your entries on the blog forum. I wish you success!

What are shoe covers made of?

Polymer materials are used to produce products. They are non-woven, waterproof and inexpensive.

Table 1. Polymer materials for the production of shoe covers

To fix the shoe cover on the leg, a latex rubber insert is made along the edges. Thanks to her, the product does not fall off the shoe.

Business plan for the production of shoe covers

You can create two business projects. The first option is compiled with minimal costs, the second includes additional costs (which can be dispensed with at the beginning of the business progress).

Least cost plan.

1. The state fee for registering an individual entrepreneur is 560 rubles.
2. Machine for making shoe covers - about 1 million rubles.
3. Equipment setup – 10 thousand.
4. Advertising 70 thousand.
5. Other expenses 10 thousand.

Total 1 million 90 thousand 60 rubles.

After production starts, fixed costs will appear:

1. Rent of premises 40 thousand.
2. Utility bills 15 thousand.
3. Salary 96 thousand (with a staff of four people).
4. Costs for raw materials are 202 thousand 400 rubles.

Total 353 thousand 400 rubles.

The total costs will be 1 million 443 thousand 460 rubles.

The second version of the business plan contains additional cost items:

1. Registration of an enterprise in the form of an LLC – 22 thousand rubles.
2. The packaging production unit will cost approximately 500 thousand.
3. Product packaging device – 500 thousand.
4. Vending machine 35 thousand.
5. Office expenses 60 thousand rubles.

Fixed expenses include office rental costs, about 40 thousand.

Costs will increase by 1 million 136 thousand rubles.

RESULT. If you choose the minimum cost option and with average sales of 50% of products per month, your shoe cover business will begin to make a profit in just 2 months.

There are additional opportunities for saving money, which we will discuss below.

Organization of production

After calculating the business plan, you need to register in the form of an individual entrepreneur or LLC. If the scale of the project is small and does not imply rapid expansion, choose individual entrepreneurship.

IP has certain advantages:

• registration will be faster and cheaper;
• the tax rate is lower (USN).

NOTE. There is no need to purchase permits or licenses.

The next stage is choosing a room. Its area is calculated depending on the amount of equipment; one machine requires about 25 square meters. meters. A prerequisite is the availability of communications (electricity first of all).

The premises parameters also include rooms for employees, a bathroom, and a place for storing raw materials and finished products.

Production should be located closer to sales markets, which will reduce logistics costs, and, if possible, further from the urban center, where rental prices are much higher than in the periphery.

At the initial stages of work, you can save on an office to receive clients, since at first you will have to look for buyers on your own.

Staff

Your business project will not work without hiring labor. You may need the following staff:

• Accountant.
• Production workers.
• Sales Manager.

If you have organized an individual entrepreneur, in this case it is not necessary to have an accountant and it is possible to keep financial records yourself.

The number of workers will be required depending on the scale of production and the complexity of the equipment. If you create a fully automated line, then for control and maintenance you will need a minimum staff of 2 people.

IMPORTANT. You can save a lot on employees by getting help from the authorities. For example, you can employ disabled people and, by contacting the employment center, receive social assistance in the amount of up to 40 thousand rubles for each employee.

With small production volumes and at the initial stage, you can find the first buyers yourself. However, as a director, it will be difficult for you to combine several positions, so it is advisable to have a competent and experienced product sales manager on staff.

To deliver goods to customers, you will need a driver with personal transport.

So, when organizing an individual entrepreneur with a fully automated product release line, you will definitely need:

• 1-2 employees for workshop maintenance;
• delivery driver;
• Sales Manager.

Raw materials for production

The materials used to make shoe covers are divided into three groups:

1. Standard polyethylene, lightweight, low density. Widely used in Russian industry.
2. Polypropylene, the material is quite dense and durable, therefore more expensive than the standard version, and therefore less common.
3. Spandbond is durable and does not slip on smooth surfaces.

All three classes are characterized by water resistance and low price.

In addition to the main raw materials, latex is required, from which the rubber insert is made. It is fixed along the edges of the product, preventing it from falling off the leg.

To produce 1 million shoe covers per month you need:

• 1 kg of standard polyethylene costs 110 rubles, and you can make 1000 products from it. Monthly consumption will be one thousand kg, cost 110 thousand.
• 1 kg of raw materials for elastic will cost 350 rubles, it is enough for 3800 shoe covers. The monthly requirement is 264 kg in the amount of 92 thousand 400 rubles.

Total expenses for raw materials for the month are 202 thousand 400 rubles.

Equipment for the production of shoe covers

To produce products, you may need machines of several categories. The full production cycle consists of the following operations:

1. Manufacturing of the product.
2. Packaging production.
3. Product packaging.

For the first stage, you need to choose the degree of automation of the machine, there are only two.

Automation, in which the process is carried out independently, requires only correct configuration and, as necessary, maintenance and control.

Semi-automatic

It is cheaper in cost, but will require constant participation of employees in its work. In speed and performance it is inferior to the automatic model.

An additional difference between the equipment is the type of seam connection, classified into ultrasonic welding and thermal welding.

The performance is almost the same, the difference is the price. Ultrasound costs about 400 thousand more.

A machine for producing shoe covers is capable of producing from 30 to 100 pairs per minute; in 8 hours this figure can reach 60 thousand.

The equipment also differs depending on the method of fastening the fixing elastic band. You can choose from two classes of machines:

• Mechanical elastic fastening;
• Machine fixation.

In the first case, the material is manually stretched, bent and soldered at the edges.

With the machine method, the elastic is automatically fed, wrapped and connected.

The main manufacturer of machine tools is China. European models are also present on the market, but they are much more expensive. Russian equipment is also more expensive than its Chinese counterparts.

Experts say that the quality of Chinese shoe cover equipment manufacturers is not inferior to their competitors.

Summarize. If your budget does not allow you to purchase an expensive model, choose a semi-automatic one with thermal welding and mechanical fastening of the elastic band made in China.

If it is important for you to create a production line at your enterprise with maximum output and speed, then purchase a machine from a domestic (or European) manufacturer with optimal functionality.

The process of making shoe covers

Consists of several sequential operations.

1. The polyethylene is unwound and secured.
2. The material is stretched on the machine. The neck is cut out and then the product is joined at the seams.
3. An elastic band is attached to the top of the product.
4. The finished product is put into boxes or packaged.

ON A NOTE. There are machines that immediately fix the harness and then cut out the products according to the template.

Finished product packaging

ON A NOTE. It is possible to do without packaging in the first stages of business development, especially if you are limited in finances. In this case, the shoe covers are simply folded one into the other. However, this decision may alienate some potential wholesale buyers. The packaged product looks more attractive and is sold much more successfully in retail.

Finished products are packaged in two ways:

• in sachet packaging (for sale through pharmacies, medical institutions, etc. without using vending machines);
• in plastic shells.

The special capsule in which the finished product is packaged is important for the further sale of products through vending machines. IMPORTANT. Half of the cost of shoe covers comes from packaging.

If you are planning to place vending machines, then the main issue will be the acquisition of a machine for the production of capsules or the purchase of ready-made packaging.

The price of equipment for the production of shells varies within 500 thousand rubles. It produces up to 66 packages per minute, and can produce up to 4 thousand per hour. In addition, you will need raw materials - polyvinyl chloride, its average cost will be 60 rubles per kilogram.

If you abandon this option and choose to use ready-made packaging, then the costs will be about 160 thousand for 2000 capsules (this amount comes in one box). Two pairs of products are placed in one shell.

Simple calculations show that the latter method is more expensive and will significantly reduce the profitability of selling goods.

The cost of a machine for packaging finished shoe covers will be approximately half a million rubles. Its productivity can reach 250 pairs per minute. Capable of servicing up to 3 shoe cover production machines.

Sales of the finished product

Products such as shoe covers have a certain circle of customers. Possible buyers should be looked for in the following areas of activity:

• medical institutions (public and private);
• massage, beauty salons;
• food, chemical and pharmaceutical production;
• pharmacies;
• sports centers;
• rehabilitation rooms;
• tourist centers;
• children's institutions (creative centers, music, art and other schools, kindergartens).

Simultaneously with the sale of the finished product, you can offer customers the installation of a vending machine.

Possible ways to promote a product:

• Creation of an information website that contains information about the product and the conditions for its sale.
• Dissemination of information in the media and on the Internet.
• Use of banners and various outdoor advertising in populated areas.

Shoe cover manufacturing technology

For production, you will need equipment - a machine (automatic or semi-automatic) that will process raw materials into shoe covers in the form of slippers (“boats”).

1. A roll of spunbond, polyethylene or polypropylene is placed on the machine.
2. The machine operates itself or is controlled by staff - the machine draws raw materials and performs soldering.
3. An elastic band is welded to the top of the product. It fixes the shoe cover on legs of different sizes.
4. The canvas is folded and cut with a hot knife.
5. The goods are packed in plastic containers and small bags and stored.

The automatic line can do all the work on its own.

Manufacturing

Like the types of products themselves, there are several manufacturing methods. The simplest one, using film, allows you to create the familiar “boats” with an elastic band at the top. Production takes place in several stages at once:

1. Installation of a roll of material for production.
2. A specialized machine pulls the material, creating adhesions and processing seams.
3. An elastic band is automatically welded to prevent the shoe covers from falling off the shoes.
4. The finished product is placed in containers or bags for subsequent sale.

The raw materials for the production of shoe covers can be varied depending on the type of product and the chosen technology, but it is worth paying attention to quality - so that the finished product does not fall apart in your hands, and its operation does not require frequent replacement.

Starting a shoe cover business: initial investment

The table below calculates the costs required to organize a shoe cover manufacturing business.

Table 2. Approximate costs for industrial production of shoe covers.

The cost of renting premises is for a city with a population of up to 1 million people.

Professional equipment for the production of shoe covers is the main expense item. There are different models of equipment on sale, you can choose cheap equipment. Our business plan involves the use of a production line that ensures process automation and high productivity.

Minimum costs for business promotion

In total, if we sum up the minimum necessary expenses, we get the following picture:

• Premises – 21 thousand rubles;
• Wages for workers – 90 thousand rubles;
• Equipment price – 1.68 million rubles;
• The cost of raw materials is 10.2 thousand rubles;
• Advertising – 12 thousand rubles;
• Utilities and other expenses – 9 thousand rubles.

In total, the minimum mandatory expenses are about 1.86 million rubles. This amount may vary over time due to inflation and other unforeseen changes, but it is unlikely to become less.

And yet, this type of business is still capable of generating a very decent income. So, with the right approach and round-the-clock operation of one production line, profit can reach 36 thousand rubles per day. Accordingly, the monthly profit will reach 900 thousand rubles. If you subtract all monthly costs and sell 100% of the manufactured products, you can recoup the cost of the purchased equipment in about 4 months. But this is only in the ideal case. This usually takes about six months.

Documentation

At the first stage, you need to select a business registration form. You can create a company either in the form of an individual entrepreneur or an LLC (legal entity). It depends on the scale of production and future plans, however, it is better for a businessman planning to open a small business to choose the form of individual entrepreneur (individual entrepreneur).

Registration will be cheaper, you can work at a low tax rate (STS). The owner will be able to handle accounting directly (the calculations are simple), and there will be no need to hire an additional person.

When registering, please indicate OKVED code 24.42.2 “Manufacture of other pharmaceutical products and medical devices.” No permits or licenses are needed.

LLC registration

Since the main consumer of the products will be legal entities, it is preferable to formalize the company in the form of a Limited Liability Company. This will require greater financial costs than an individual entrepreneur, but an LLC has a number of advantages - a higher status in the business environment and the ability to answer to creditors only with the amount of the authorized capital.

Since the planned business meets all the requirements allowing the transition to a simplified taxation system, it is worthwhile to submit an application for the transition to the simplified tax system immediately after filing registration.

This will allow:

• reduce accounting costs and report only 4 times a year;
• refuse to pay VAT;
• pay taxes at a rate of 6% on income or 15% according to the “income minus expenses” scheme.

Even if you switch to a simplified system, it will be impossible to do without the services of a hired accountant, but only 1 person can handle this work. He will also calculate payroll, monitor payments to suppliers and customers.

The cost of registering an LLC will be about 7,000 if you do the registration and collection of papers yourself. If you resort to the help of lawyers, the figure will increase to 15,000 rubles.

Based on calculations, the shoe cover production business will be profitable and will pay for itself within two years.

Room

To work, you will need a small room equipped with communications (most importantly, electricity). For 1 machine you will need a workshop area of ​​up to 20 square meters. m.

In addition to it, we need rooms for staff, a warehouse for raw materials and finished products, and a bathroom.

It is recommended to rent a workshop on the outskirts of the city - this will reduce the cost of rent. It is also not worth locating too far from the sales market - logistics costs will increase.

At first, you will not need an office to receive clients. The entrepreneur will have to do the “processing” of potential buyers himself.

Initial investment and costs per year of production

The initial investment is easy to calculate. They include purchasing everything you need to start a business. All calculations will be approximate, much depends on the selected equipment. So, you will need:

• purchase of equipment – ​​1,500,000 rubles;
• payment for the work of the team that will install and launch the equipment. Total amount – 30,000 rubles;
• registering your own business. If you choose the legal form of individual entrepreneur, then the amount of the state fee will be about 800 rubles.

Using the example of purchasing a machine with ultrasound, the total amount will be 1,530,800 rubles.

Monthly investments will consist of the following amounts:

• to produce the first batch of shoe covers you will need materials, in particular, latex tape and polymer, the total cost will be approximately 15,000 rubles;
• wages to employees, the total amount of which is about 135,600 rubles;
• advertising costs for the product will be approximately 20,000 rubles per month.

The total number for the year will be 2,047,200 rubles.

The total number of tax collections is an individual criterion. It is also quite difficult to calculate the cost of rent. Its average value depends primarily on the region, distance from the city center and total area.

Equipment

To produce shoe covers on an industrial scale, you need professional equipment. Products can be manufactured using 2 technologies - using ultrasound or heat treatment (heat welding).

According to the business plan, the production line includes the following equipment:

• directly the machine for the production of shoe covers - STKM 17 (cost 1.5 million rubles);
• apparatus for creating packaging - ;
• machine for packing shoe covers (cost 350 thousand rubles).

The machine can operate without the participation of people - workers will only be needed to monitor the manufacturing process and maintain the production line. It is more expensive than the semi-automatic version, but it is beneficial in the long term - you will be able to save on hiring and training staff.

The productivity of the automatic machine is up to 100 pairs of products per minute.

Financial plan

A business plan begins with calculating expenses and income.

• Cost of equipment: about 1,400,000 rubles;
• delivery and setup of equipment: from 10,000 rubles;
• purchase of raw materials for production and elastic bands: 10,000 rubles;
• payment of rent, registration with the INFS and other expenses: from 70,000 rubles.

The cost of one pair of shoe covers is approximately 1 ruble. Wholesale companies sell products at almost twice the price in accordance with the purchase price. In 8 hours the machine produces 28,800 shoe covers. Accordingly, monthly revenue will be around 864,000 rubles.

Mechanical shoe cover remover

You should also take into account the list of monthly expenses, which includes advertising, purchase of raw materials, wages, taxes, and utilities. Expenses on average reach 500 thousand rubles. Thus, with a minimum time frame, the profit will be about 300 thousand rubles. Expanding the sales market can significantly increase income even in the first period of operation.

It is very profitable to engage in the production of shoe covers. Manufacturing does not require a license, which speeds up the preparation of documents and the start of work. For this area of ​​business, it is recommended to register as an individual entrepreneur or LLC, depending on the number of owners and the volume of production. Focusing on wholesale trade, an LLC company positions itself as a large, reliable partner. Additionally, for operation you will need to obtain permission from the Fire Inspectorate and the Sanitary and Epidemiological Station.

Staff

2 people can handle the work in the workshop, as well as loading and unloading operations. They will monitor the equipment and check the quality of the products.

A senior manager is also needed. You can only work without it for the first time, since the owner himself will often be at the site.

It is worth hiring a sales manager whose task will be to negotiate with consumers and conclude supply agreements.

The driver can deal with logistics issues; it is better to bring personal transport. The driver’s task is to deliver products to customers.

Sales

Shoe covers are now actively used by many institutions - not only medical, but also, for example, sports. There are 3 main groups of consumers interested in the product:

• Medical institutions (hospitals, clinics):

1. clinics, hospitals, maternity hospitals, other government medical institutions;
2. private medical clinics;
3. dental offices.

• Cosmetology companies (beauty salons, SPA salons, manicure/pedicure and hairdressing salons).
• Industrial enterprises.
• Sports centers (fitness, yoga).
• Educational institutions, kindergartens, children's art centers (music, dance, art schools).
• Food and chemical industry enterprises.

Products can be delivered directly or through vending machines.

Implementation

Any business plan at a very early stage should include planning of distribution points. Such organizations include the following:

• Medical institutions of any nature, including private clinics and public hospitals. They are required to be used in obstetrics and gynecology departments, dental departments, and even in routine care wards.
• Cosmetology and beauty centers. This could be a private center or salon, and in some cases the product is required even by hairdressers.
• Industrial enterprises directly related to food and chemical elements.

An approximate plan of action for the sale of goods will consist of direct supply agreements with the listed institutions, as well as regular advertising in the media, participation in various events and partnerships.

Marketing and promotion

Personal contact is of great importance in promoting a product. It is better to offer products and negotiate contracts with all potential consumers in person.

That’s why you need a sales manager who knows how to negotiate.

It is important to use different advertising channels:

• create a website, rent banners on third-party resources;
• publish advertisements in newspapers and media;
• hand out business cards;
• order outdoor advertising.

Sales market

Sales of finished products is one of the most difficult and complex processes. Therefore, if you want your business to be successful and prosper every year, then this issue should be given maximum attention.

Finding buyers is the main task of a sales manager. Much depends on his ability to conduct dialogue and offer services.

First, you need to focus on selling goods in your region or city, since this will require less effort, and the costs of transport services will be minimal.

The target audience in our case is:

• medical institutions, mostly private;
• cosmetology beauty salons;
• gyms and sports complexes;
• organizations in the food or chemical industry;
• rehabilitation centers, both public and private;
• network of pharmacies.

Your sales and sales manager must find contacts of all potential buyers, organize a meeting with management and offer them to purchase the product on favorable terms.

Also, special attention should be paid to buyers who live in other regions or countries. You can advertise your products on the Internet, and also look for connections with large companies through friends or other large entrepreneurs.

In addition, you need to invest money in advertising your own products. This could be installing banners, running a campaign through Yandex. Direct" or Google AdWords, as well as targeting on social networks.

On average, all this will cost about 20,000 rubles per month.

Additional service – vending machines

If you decide to sell your shoe covers at a retail price, which will bring you more profit than selling at a wholesale price, then the best option for this is to organize a vending business.

To do this, you need to spend money on purchasing shoe cover vending machines. They can be installed in sports complexes, as well as private medical institutions. In addition, you need to make sure that the shoe covers have packaging. This may be a small bag or a plastic capsule.

This way you can approximately double the cost of your products.