Arana told his whole family about his plans for iRunand how he intended to finance the stores launch. As a young Latin guy, I was always afraid to take a risk, he says. Sometimes we settle into a comfort zone. But becoming an Hispanic entrepreneur was never in my mind until I was forced into a situation where I had to make a big decision on my future.
Entrepreneurship runs in Aranas blood: his grandfather owned restaurants in Colombia, while his dad ran a pub there.
The first challenge involved the heavy taxes, fees and licenses needed to set up shop. I was not prepared for the costs associated with this, Arana says. I applied for a business license, and then I had to register the business. It adds up. The city of Miami collected $357. Theres an unseen third partnerthe government, he says. Through taxes, they make more money than we do.
The Right Partner
As a runner, Arana knew what his customers needed, but he lacked a formal business plan. Enter Cobi Morales, a triathlete who had just entered his sixth year working at a large privately owned running store in South Miami. If I was going to start this business, he was going to guide me, Arana admits. He was the business plan.
Morales was skeptical. I put my financial stability at a big risk, he says. I am sure this is not for everybody. Its not easy. Ultimately, Aranas drive and ambition convinced Morales to come aboard.
With Morales as a business partner, the two contacted all of the major shoe companies to obtain their commitments to the stores inventory. Arana and Morales then started to scout for a location.
A leasing agent did a demographic study on the traffic, annual household income, age, ethnicity and spending of the area surrounding the store, Arana says. That helped, but we already knew that the location was in an up-and-coming part of Miami, close to where my grandmother lived. With all of these new restaurants and shops nearby, saying yes was like an epiphany.
On one day before Arana’s 40th birthday and less than four months after exiting the jewelry business, iRun opened its doors to the public. Six months later, business growth is right on track, he says. Theres a little bit of growth every month, and were looking forward to the fall season, when everyone starts training here in Miami.
To call the interior of the store spacious could be an understatement. But it was a conscious decision. Some marketer came in and criticized all of the wasted space, Arana says. We disagreed, because we wanted something more inviting than another store with a bunch of crowded racks.
Arana and Morales took a cue from high-fashion boutiques such as Hugo Boss and Kenneth Cole, opting for sofas rather than benches to add to the warm environment.