3. Know The Industry
You can gain the greatest competitive edge if you have an intimate
knowledge of your business. To thrive and prosper, you must be committed
to learn and have the desire and energy to accomplish your goals. These
are five main reasons why most businesses fail:
- Lack of Industry Knowledge
- Lack of Vision
- Poor Market Strategy
- Failure to Establish Goals
- Inadequate Capitalization
4. Understand Your Customer
Make it your business to give your customers what they want, and they
will do business and buy from you. The products and services you provide
should reflect your customers needs and wants. Think in your customers'
terms; buy, show, sell, and say things that interest them, not just what
interests you. Remember, it is the customer that determines whether or not
you succeed.
5. Keep Good Financial Records
If you don't know where your money is going, it will soon be gone. The
"game of business" is played with computers -- and the score is evaluated
in dollars and cents. Good financial records are like the instruments on
an airplane, they keep you posted of your height, direction, and speed.
Without them you're flying blind with no controls to guide you to your
destination.
6. Manage Your Cash
It doesn't matter how unique and wonderful your store is, your business
can't survive without cash flow. Money coming in your store is the vital
component that keeps your business financially healthy. If you budget
wisely and know the interval of your monthly income and expenses, you
won't have to worry about running out of money.
7. Use Sound Management Practices
As a store owner, you are also a manager. You have to make decisions,
offer customer service, manage time and resources, and know how to
merchandise and run the business better than anyone working for you. Give
your employees the opportunity for growth, treat them fairly, pay them
what they're worth, and they will help make your business successful.
8. Develop A Distinctive Image
Your image is important and is a function of your marketing efforts
and materials. Customer's create their perceptions of your business from
your name, web site appearance, store location, products, prices, visual
merchandising, signs, displays, business cards, newsletters, advertising
material, customer service and anything else that relates to your
business.
9. Control Your Inventory
All retail stores need to manage inventory. It is your money sitting on a
shelf and represents a large portion of your business investment. The
retailer who merely watches the store's shelves can't maintain a proper
balance between the right amount of merchandise and probable customer
demand. Without adequate control, slow-moving inventory becomes dated and
very costly.
10. Buy and Price For Profit
To understand retailing, one must start with the concept that the
price of your merchandise is nothing more than a temporary estimate of
what the customer is willing to spend. In devising your overall pricing
strategy, a practical approach can be based on the function of supply and
demand. To be more competitive, join buying groups and seek out
manufacturer discounts that allow you to purchase merchandise below
wholesale prices. By offering better values, you'll be able to attract
more customers, and offer more opportunities to shop at your store.
11. Learn From The Pros
In today's explosive markets, making the right moves is absolutely
essential, there is little room for error. Without knowing how to navigate
through these fast-moving times, it can be a tricky and even a
self-destructive experience. Because of the emotional and sometimes
difficult decisions that must be made, the crucial difference is having
fresh ideas with an impartial business position.
12. Ask For Help When You Need It
Remember, getting results is what counts! Don't be too proud to ask
for help, we all need help sometimes. It is important to recognize that
what you don't know can end up costing you money, hurt the odds of
success, and greatly reduce the chance of achieving your business goals.
Hiring an expert with specialized skills can be the most profitable
decision you can make to protect both your business and financial future.
Bob Nelson is President of POWER Retailing, an experienced
consulting firm that specializes in retail store turn arounds, closings,
and retirement sales. Visit his site at
http://www.retailing.com
or contact him by email at
bnelson@retailing.com or by phone at 480-460-1965.
