How to Start a Skate Shop

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You may have thought of skateboarding as a fun pastime, but what if it could be a career opportunity, too? If you’ve grown up skating, have a genuine love of the sport, and eat, breathe, and live skateboards, then you might be well-positioned to open a skate shop of your own. A skate shop means you’ll be immersed in the skateboarding world daily, and you’ll have the chance to connect with and advise other skaters. There’s also plenty of hard work involved, but opening a skate shop can allow you to combine your work with your passion for skating.

Business Overview

Skate shops sell skateboards, apparel, and equipment. These stores offer customers the advantage of being able to see, feel, and even test out equipment in person before making a purchase. Some shops also offer skateboard repair and equipment upgrades, serving as a hub for local skateboarding enthusiasts.

In addition to providing goods for sale, skate shops often sponsor competitions and events. They may put on demonstrations and sponsor local skating groups or individual athletes, too. These shops tend to heavily focus on building the skateboarding community, and they become a go-to resource for skaters of all ages.

Industry Summary

According to a press release by Grand View Research, Inc. on PR Newswire, the global skateboard market is thriving and is predicted to be a $2.4 billion market by 2025. Increased awareness of overweight and obesity issues among children has led to more support for skateboarding and other sports that keep kids physically active and healthy. Increased construction of public skate parks and government initiatives for skate park construction has led to more parks and more opportunities for skateboarders.

North America held 31.7% of the global skateboard industry revenue in 2018, which is the largest market, due partially to increased public awareness of the sport and wide product availability, which helps to drive sales.

Industry Trends

The sport of skateboarding is well-known for its notable style. According to Martlet, while the sport originated as the “sport of outcasts,” today, skate style is nearly everywhere. Skateboarding has come far in its evolution as a sport and a culture. It’s an officially recognized sport in the 2021 Olympics, and since the 1990s, skateboarding has become tremendously popular.

During those 30 years, skateboarding has been normalized as a sport and pastime. The sport has become more accessible, and skate fashion is now normalized as a mainstream fashion. That style comes in phases, with certain trends gaining popularity and then circling back again.

Electric skateboards have also emerged as a new transit option. According to Ground Control Systems, these machine-powered skateboards are controlled by remotes or by smartphone apps. Because some electric skateboard can reach up to 25 miles an hour, they can shorten commute times and even allow riders to travel uphill. Manufacturers have already created a variety of models, including longboards and shortboards. This trend will likely continue to gain popularity in the years to come, and it provides another retail and repair option for skate shops. Shops that carry electric skateboards could potentially broaden their customer base from those who enjoy skating as a sport to include those who rely on skateboards as transportation.

Target Market

Skate shops market to children, teens, and adults who love the sport. Most shops market to local skateboarding enthusiasts, though shops with online stores may also market to national audiences. When shops connect with children who are just getting introduced to the sport, these kids can become long-term customers through their teen and adult years.

Skills, Experience, and Education

It doesn’t take a business degree to open and run a skate shop, but certain skills and experiences are valuable and helpful when running this type of business.

Skateboarding experience. Experience in and knowledge of skateboarding is essential. This experience will help a business owner choose quality products that will appeal to customers and help the owner advise customers and make good product recommendations.

Knowledge of skateboarding trends. A knowledge of skateboarding trends is essential to ensure that a shop is well-stocked and delivers the products that its customers will want. Awareness of both current and emerging trends can help a shop stand out from others, encouraging customers to turn to it for information on the newest must-have products.

Customer service skills. Great customer service skills are important in building relationships with customers. This is particularly vital in a shake shop since a customer who’s a child may turn into a returning customer for decades to come.

Management experience. Experience in hiring, training, and managing staff can help a business owner keep a business running smoothly and find staff representing the store well.

Marketing knowledge. Most skate shops do at least some of their own marketing, so a knowledge of social media marketing, advertising techniques, and even event marketing will be valuable.

Passion for skateboarding. Above all else, a skate shop owner needs to have a genuine passion for skateboarding. This enthusiasm will come through in his or her interactions with customers.

Costs to Start

Startup costs for a skate shop can vary tremendously depending on the shop’s area, size, and the amount and type of inventory offered. It may be possible to start a smaller shop for about $50,000, but a larger shop offering higher-end products will cost $100,000 or more.

Common startup costs for a skate shop include:

  • Inventory such as decks, wheels, helmets, pads, t-shirts, etc.
  • Shelving and displays
  • Equipment and supplies, like equipment used for repairs and upgrades
  • Renovation costs
  • Signage and store decor


Steps to Starting a Skate Shop

Step 1: Write your Business Plan

After coming up with the idea, the next step in starting your business should be to write a business plan. Not only will a bank require you to have a business plan, but multiple studies have shown that a business plan helps increase the odds of starting a successful business.

How to write a business plan
Free sample business plans

Step 2: Form a Business Entity

A business entity refers to how a business is legally organized to operate. There are four primary business entities to choose from, which include the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC).  Each type of entity has its own pros and cons, such as liability exposure, costs, and administrative requirements.

Related: Comparison of Business Entities

Step 3: Name the Business

Finding the perfect business name can be challenging. Not only does the name have to resonate with your customers, but it also has to be available to use.

Related: Tips and ideas for naming a skate shop

Step 4: Select your Location

Rent costs will vary depending on the shop’s size, location, and amenities. Retail spaces in high-traffic retail locations can carry higher rent costs, but they also help with a business’ exposure. Keep in mind that a shop located near a skatepark or competition venue can be ideal since it will already be convenient for its target market to access.

Related: Choosing a business location

Step 5: Register for Business Licenses and Permits

A skate shop owner will need to obtain certain business licenses and permits. These permits and licenses can vary based on the state and town where the business is located.

Some of the general local, state, and federal business registrations include a sales tax permitEmployer Identification Number, and Occupancy Permit.

Related: Common business licenses, permits, and registrations by state

Step 6: Find Financing

Coming up with a good business idea and having the skills to run it are one thing, but getting the funding to start a skate shop is another.  In order to get a small business loan, the borrower(s) will need to have good credit and be able to personally invest 15-25% towards the total start-up costs.

Related: Finding the money to start a business

Step 7: Open a Business Bank Account

Keeping your business and personal finances in separate business bank and credit card accounts makes it easier to track the business’s income and expenses.

Step 8: Get your Marketing Plan in Place

Marketing is essential to a skateboarding shop’s success. Common marketing techniques for skate shops include social media marketing, print advertising, online advertising, and event sponsorship. Skate shops will sponsor teams as a part of their marketing strategy and have them come in and demo products or teach a beginners clinic. Skate shops will also sell, or in some cases, give away t-shirts and stickers that their customers display and become walking advertisements for the stores.

Marketing costs will depend on the type of activity performed, but a store owner who can do at least some of their own marketing can save money over hiring a professional.

Related: Low-cost ideas to market a new business

Step 9: Get Business Insurance

A skate shop will need several types of insurance for full coverage:

  • General liability insurance will help to protect the shop against expenses it might face, like medical bills, if a customer is ever injured while on the property.
  • Commercial property insurance helps cover expenses that could result if the shop or its inventory are damaged or destroyed by an event like a fire.
  • Worker’s compensation insurance protects the business from expenses like medical bills that it might face if an employee were ever hurt while working.

The cost of insurance policies will vary from provider to provider, and factors like the shop’s size, location, and the value of its inventory can also alter policy costs. To get the most accurate idea of what to budget for insurance, request quotes from multiple providers. When comparing the quotes, it’s important to look at more than just how the premiums stack up. Instead, consider all of the factors like the differences in deductibles, the exclusions of each policy, and how the coverage limitations compare.

Related: Common types of insurance a business may need

Step 10: Hire Employees

A skate shop will need at least a few employees to cover all of its shifts, though an owner can keep costs down by working many shifts themselves. According to Simply Hired, a skate shop technician earns an average of $37,181 per year. A sales associate earns approximately $22,194 each year.

Staff salaries are just one expense that comes with hiring employees. A skate shop’s budget also needs to include expenses like workman’s comp insurance, unemployment insurance and paid time off.

Related: Hiring your first employee

Step 11: Set up an Accounting System

Setting up an accounting system is critical to the long-term success of your business.

Staying on top of taxes not only keeps the business out of trouble with the government, but the numbers can be used to track and monitor trends and cash flow in the business and maximize profits.

Related: Setting up accounting for your business


How much can you potentially make owning a skate shop?

Skate shop profits will vary depending on the shop’s location, size, the type of inventory it stocks, and how long it’s been in business. This can be a profitable industry, but a shop owner will need to understand the brands, types, and price points of the goods that are most in demand in the area. Innovation plays a role in profits, too, and shops that design programs to support local skaters long-term may enjoy increased customer loyalty and community support.

Things to consider before starting a skate shop

Trends and items that are in-demand can vary greatly between different locations and demographics. Before opening your shop, get a sense of what’s popular in your area. Head to a local skate park and look at the boards skaters are using and the clothes that they’re wearing. If your friends are part of your target audience, ask them about the gear that they most prefer.

Location is everything for a skate shop, so scout potential locations carefully. Locations near skate parks, schools, and competition venues tend to do well, but look for competing businesses, too. Try to get a sense of the local area and the popularity of skateboarding. Finding a location where there are already local competitions and an active skateboarding culture is ideal.

Consider not only offering in-person sales but branching out into online sales, too. Going online can increase your audience and help to drive sales. There’s lots of competition online for more general skate merchandise, but if you can stock some specialty products or items with unique personalization options, you can appeal to a broad skating audience and expand your shop’s reach.


Board Retailers Association

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