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By
Bob Nelson
The
purpose of any business is to bring in customers, and it can
only be accomplished through marketing. If your cash registers
don't ring, something is wrong and you had better find out
what is wrong fast. Because in today's competitive retail
world...getting results is what
counts.
Successful retailers aren't any more talented or
intelligent than you are—they simply have learned to do things
in a different way and make money in the process. Use the
following 12 steps to improve your retail sales, you'll
simplify your efforts, multiply
profits, and increase the
odds of success.
1. Know
Yourself
Having your own
business is more than just creating a job for yourself. Your
basic roles are in marketing, finance, administration and the
responsibility of personnel. To get the best results, it is
rare for one person to play all these roles equally well. You
must know which parts you can handle yourself and which parts
you're going to need help
with.
2. Plan
Ahead
Many stores are
run by well-intended people but who don't have all the
information they need to do their job. This includes a clear
idea of market segment, target markets, customer service,
product selection, marketing mix, promotional activities and
pricing tactics. If you want to succeed you need a well
thought out business plan that helps you make the right
decisions.
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:
1. Lack of Industry
Knowledge
2. Lack of Vision
3. Poor Market
Strategy
4. Failure to Establish Goals
5. 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.
© 2004 Bob
Nelson
Bob Nelson is president of POWER Retailing. For free
information on how to simplify your marketing efforts and add
dollars to your bottom line, visit www.retailing.com. For
practical answers to specific business questions, call him at
480/460-1965 or contact him by email: bnelson@retailing.com.
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