A sunglasses line business is a business that designs and produces different types of sunglasses from timeless styles such as the classic aviator, round, square, cat-eye, and wrap-around sunglasses, to more extravagant styles including hexagonal, butterfly, and club master sunglasses.
Available data shows that the revenue in the Sunglasses segment amounts to US$4.34bn. The market is expected to grow annually by 7.21 percent (CAGR 2022-2025). In global comparison, most revenue is generated in the United States (US$4,343.00m).
In relation to total population figures, per-person revenues of US$12.97 are generated. In 2020, the sunglasses market revenue in the U.S. amounted to approximately 4.1 billion U.S. dollars, making it the revenue-strongest market worldwide. The U.S. sunglasses market was followed by the Chinese and Brazilian markets.
Steps on How to Start a Sunglasses Line Business
Conduct Market Research
The first step in the market research process for your sunglasses line business is to develop market-based research questions in line with your overall business goal and objective.
In this regard, you should source information that will help you maximize your business, information that will help you know what your potential market will be looking out for from a sunglasses line business, and also to help you operate your sunglasses line business with less stress and of course, build the business to profitability within the shortest time frame.
a. Who is the Target Market for Sunglasses Line Business?
Although major users of sunglasses are aged between 15 and 49 years, the use of sunglasses by consumers above the age of 50 is gradually growing. If you are thinking of opening a sunglasses line business, then you should make target demographics all-encompassing.
It should include boutiques, sunglasses stores, corporate executives, socialites, students, celebrities, and every adult in the neighborhood where your sunglass line business will be located and of course on the internet.
b. Is Sunglasses Line a Profitable Business?
Yes, the sunglasses line business is very profitable because the majority of the people, about 85 percent of the American population, wear sunglasses. Some sunglasses are prescription and others are used only to protect the eyes from damage from the sun.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to the sunglasses line of business.
d. Who are the Major Competitors?
- Ray-Ban
- American Optical
- Oakley, Inc.
- Maui Jim
- Persol
- Oliver Peoples
- Mykita
- Tom Ford brand
- Randolph Engineering
- Warby Parker
- Moscot
- ic! Berlin
- Prada
- Carrera World
- Cutler and Gross
- Kirk Originals
- Garret Leight California Optical
- Cubitts
- Jacques Marie Mage (JMM)
- Banton Frameworks.
e. Are There County or State Regulations or Zoning Laws for Sunglasses Line Business?
Yes, there are county or state regulations and zoning laws for sunglasses line business especially if you choose to open a production factory. Players in this industry are expected to work with the existing regulations governing such business in the county or state where the business is domiciled.
f. Is There a Franchise for Sunglasses Line Business?
No, there are no franchise opportunities for the sunglasses line business.
g. What Do You Need to Start a Sunglasses Line Business?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- A Good Production Facility and Showroom
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- Equipment, Machines, and Raw Materials
- Employees
- Startup and Working Capital
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a sunglasses line business are;
Creative Sunglasses Line Business Name ideas
- Zero Nodes® Sunglasses Line, Inc.
- Fine Bones® Sunglasses Line, Inc.
- Will Saints® Sunglasses Line, Inc.
- Julius Ceasar™ Fashion Brands, Inc.
- Jon McAllister® Sunglasses Line, Inc.
- Al Baroness® Sunglasses Line, Inc.
- The Boss® Sunglasses Line, LLC
- Andrew Lackey® Sunglasses Line, LLC
- James Brown® Sunglasses Line, Inc.
- Nath Freeze® Sunglasses Line, Inc.
- Blue Frame® Sunglasses Line, Inc.
- Stan Stanley™ Sunglasses Line, LLC
- Joy McKenzie™ Sunglasses Line, Inc.
- Broadway™ Sunglasses Line, LLC
- Brain Signature® Sunglasses Line, Inc.
- Shannon Curve® Sunglasses Line, Inc.
- Shawn Nelson© Sunglasses Line, Inc.
- George Signature™ Sunglasses Line, LLC
- Chris Newton™ Sunglasses Line, Inc.
- Barry BEven thoughLine, Inc.
Register Your Business
a. What Type of Business Structure is Best for Sunglasses Line Business?
Despite the fact that there are several options when it comes to the business structure for a sunglasses line business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Sunglasses Line Business?
- General Business License
- Seller’s Permit
- Fire and Safety Permit (Fire certificates)
- Federal Export Licenses
- Zonal Permits
- Signage Permit
- State Occupational Licenses
- Operational State Facility Inspections (Building Permits)
d. What Type of Certification is Needed to Open a Sunglasses Line Business?
You don’t need any certifications to open a sunglass line business.
e. What Documents are Needed to Open a Sunglasses Line Business?
- DBA
- EIN
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Online Terms of Use
- Online Privacy Policy Document
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a sunglass line business, usually you may need to file for intellectual property protection or trademark. This is so because the nature of the business makes it possible for you to challenge people in court for illegally making use of your company’s intellectual properties especially as it relates to your designs or logo et al.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Sunglasses Line Business?
When it comes to starting a sunglasses line business, the startup costs vary and could range from $200,000 to over $500,000. This is because the inventory and equipment needed to start the business will greatly influence the cost of starting the business.
b. What are the Cost Involved in Starting a Sunglasses Line Business?
- The total fee for registering a business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $3,300.
- Marketing promotion expenses for the grand opening of the sunglasses line business – $3,580.
- The cost for hiring a Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square foot in the total amount of $120,000.
- The cost for facility remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses like stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost of equipping the production factory – $125,000
- The cost of start-up inventory – $75,000
- The cost for store equipment (cash register, security, ventilation, signage) – $3,750
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound systems, tables and chairs et al): $4,000.
- The cost of launching a website: $600
- The cost for our opening party: $3,000
- Miscellaneous: $5,000
c. What Factors Determine The Cost Of Opening A Sunglasses Line Business?
- The size of the business
- The choice of location
- The required licenses and permits
- The cost of hiring and paying a business consultant and attorney
- The cost for branding, promotion, and marketing of the business
- The cost of furnishing and equipping the sunglass facility
- The cost of insurance
- The cost of registering the business
- Source of your supplies and ongoing expenses
- The cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
- The cost for the grand opening of the sunglasses business.
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
It is not compulsory to build a new facility for your sunglasses line business, but if you have the required finance, it will pay you to build your own facility. The truth is that building or reconstructing a facility will help you come up with a facility that will perfectly fit into your overall business goals and vision.
e. What are the Ongoing Expenses of a Sunglasses Line Business?
- Rent and lease
- Supplies and inventory
- Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
- Maintenance of machines
- Salaries of employees
f. What is the Average Salary of your Staff?
- Chief Executive Office (President) – $65,000 Per Year
- Plant Manager – $38,000 Per Year
- Merchandise Manager – $35,630 Per Year
- Sunglasses Designers – $35,000 Per Year
- Accountant (Cashier) – $30,500 Per Year
- Marketing and Sales Executives – $28,000 Per Year
- Production Line Workers (Operators) – $28,100 Per Year
- Customer Service Executive – $26,000 Per Year
- Security Guard -$24,000 Per Year
g. How Do You Get Funding to Start a Sunglasses Line Business?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Jon McAllister ™ Sunglasses Line, Inc. is a standard sunglasses business that will be located in an industrial area in Silver Spring, Maryland. We have been able to secure a long-term lease agreement for a facility in a strategic location with an option of renewal on terms and conditions that are favorable to us. The facility has government approval for the kind of business we want to run and it is easily accessible.
b. Products and Service
Different types of sunglasses from timeless styles such as the classic aviator, round, square, cat-eye, and wrap-around sunglasses, to more extravagant styles including hexagonal, butterfly, and club-master sunglasses. The choices for both men and women are limitless.
c. Mission Statement
Our mission is to produce a wide variety of top-notch sunglasses specially created for men and women of style. Every pair of our sunglasses is made of excellent quality acetate and handcrafted in our workshop.
Vision Statement
Our vision is to align with the best sunglasses brands in the world. To be best-known for our bold and interesting classic shapes with subtle contemporary designs.
d. Goals and Objectives
The goals and objectives of a sunglasses line business are to design and produce sunglasses for different purposes.
e. Organizational Structure
- Chief Executive Office (President)
- Production Manager
- Merchandise Manager
- Sunglasses Designers
- Accountant (Cashier)
- Marketing and Sales Executives
- Production Line Workers (Operators)
- Customer Services Executives
- Security Guard
Marketing Plan
a. SWOT Analysis
Strength
- High-quality sunglasses (our sunglasses come in anti-reflective, scratch-resistant lenses that are distortion-free. These are capable of blocking 100 percent UVB and UVA light to protect your eyes.)
- Ideal location for a sunglasses line business
- Highly experienced and qualified employees and management
- Access to finance from business partners
- Excellent customer testimonials.
Weakness
- Financial constraints
- A new business that will be competing with well-established sunglass brands.
- Inability to retain our highly experienced and qualified employees longer than we want
Opportunities
- A rise in people who want to join the fashion trends of wearing sunglasses
- Online market, new services, new technology, and of course the opening of new markets
- Increase in the human population within our target market area (the majority of people, about 85 percent of the American population, wear sunglasses).
Threats
- The arrival of new sunglasses business within our market space
- Unfavorable government policy and regulations.
- Steady wage expenses and increasing prices of gas will reduce industry profitability.
- Economic uncertainty
- Liability problems
b. How Do Sunglass Businesses Make Money?
Sunglasses lines make money by selling sunglasses.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Place adverts on both print (newspapers, lifestyle and fashion magazines) and electronic media platforms
- Sponsor relevant community-based events/programs
- Leverage the internet and social media platforms like; Pinterest, Instagram, Facebook, Twitter, YouTube, Google + et al to promote your products
- Install your Bill Boards in strategic locations all around your city or state
- Distribute your fliers and handbills to target areas
- Contact corporate executives, students, migrants, celebrities, public figures, military men and women, sportsmen and women, and every adult in the neighborhood where your sunglasses line business will be located informing them about your business and the products you retail
- List your sunglasses line business in local directories/yellow pages
- Advertise your sunglasses line business on your official website and employ strategies that will help you pull traffic to the site.
- Position your Flexi Banners at strategic positions in the location where your sunglasses line business is located.
- Ensure that all your staff members wear your branded sunglasses and that all your vehicles and trucks/vans are well branded with your company logo.
Financial Projection
a. How Much Should You Charge for your Product/Service?
The price of sunglasses depends on the type, size, and brand of the product. We will price ours from $100.
b. How Much Profit Do Sunglasses Line Business Owners Make a Year?
It depends, but the available report shows that the average earnings of sunglasses line business owners are approximately $65,000 per year. Sunglasses line business profits can average between $60,750 and $140,935 or even more, depending on your location, line specifics, expenses, marketing efforts, and company size.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the sunglasses line business
- The location the sunglasses line business is covering
- The management style of the sunglasses line business
- The business approach of the sunglasses line business
- The advertising and marketing strategies adopted by the sunglass business.
- The number of years the sunglasses business is in business.
d. What is the Profit Margin of a Sunglasses Line Business?
The sunglasses line business gains a handful of profit on all the products- margins usually range from 20% to around 55%. So, the revenue you would be making will be based on sales made by you monthly and the expenses that you incur while running the business.
e. What is the Sales Forecast?
- First Fiscal Year (FY1): $340,000
- Second Fiscal Year (FY2): $450,000
- Third Fiscal Year (FY3): $780,000
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for Sunglasses Line Business?
- The demography of the location
- The demand for sunglasses in the location
- The purchasing power of businesses and residents of the location
- Accessibility of the location
- The number of sunglasses lines in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Sunglasses Line Business?
- Silver Spring, Maryland
- Rowland Heights, California
- Portland, Oregon
- New York City, New York
- Atlanta, Georgia
- Dallas, Texas
- Las Vegas, Nevada
- Los Angeles, California
- Chicago, Illinois
- Boston, Massachusetts
c. What Equipment is Needed to Operate a Sunglasses Line Business?
- Oven
- Filing machines
- Cutters
- A steel mold, or die
- Measuring Equipment
- Digital Scale.
Hire Employees
When it comes to hiring employees for a standard sunglasses line business, you should make plans to hire a competent chief executive officer (president), plant manager, merchandise manager, accountant (cashier), marketing and sales executives, plant workers, and sunglasses designers, and security guard.
Launch the Business Proper
No sunglasses line business opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening party if you are operating on a low budget or you can go for a grand opening party.
The bottom line is that with a proper launching of the sunglass business, you will officially inform people in your city that your sunglasses line business is open for business.
a. What Makes a Sunglasses Line Business Successful?
- Choose a good location and showroom facility to launch the business
- Make sure your sunglasses are unique and the finishing is topnotch
- Throw an open house party before officially opening the business
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your sunglasses line business
- Leverage all available online and offline platforms to promote your sunglasses business
b. What Happens During a Typical Day at a Sunglasses Line Business?
- The production factory is open for the day’s work
- The facility is cleaned and well-arranged
- Factory swings into action (production of sunglasses)
- Deliveries of orders are made
- Stocks are taken and reports are written and submitted to superior officers
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Sunglasses Line Business?
- Good sunglasses design skills
- Excellent customer service skills
- Interpersonal skill
- Accounting and bookkeeping skills
- Business management skills
- Bargaining and bidding skills
- Work experience in a sunglasses business environment
- Experience in managing people
- Experience in business administration.