Top 10 Insider Tips for Retail Success
Here are ten no-nonsense tips for success in owning and operating any type of retail business.Profit is your motivator. While many retailers have goals which are not connected to profit, the one achievement which keeps any retail business operating is profit. Profit needs to guide every decision in the business whether you like it or not. It is better to invest them profit where you want than to run a retail business which is unprofitable due to generosity which the business cannot afford.Cash is king. It is essential that cash be treated with respect in the business. You do this by ensuring that proper business records are kept, that cash is managed on a daily basis, that theft is minimized, that cash is not wasted and that appropriate reserves are maintained to reduce the need to borrow to support the business.Plan. Plan well ahead. While the plan will not always be following, just thinking through retail seasons and other opportunities in advance will ensure that you have
everything required under control for success.Embrace change. Change your product mix, where products are located, displays, pricing, how you market the business… constant change shows a retail business on the move, connected with the times.Employ good people. Retailers often complain about employees. It is important to remember who hires, fires and manages the employees. Good people are only as good as those in control.Strong leadership. This is vital to the success of a retail business. From the shop floor to the back room, demonstrate an unwavering commitment to the business and all that it stands for. Lead by doing. Show the behaviour you want from the team. Poor leadership is a common feature of a failing retail business.Connect with your community. Embrace opportunities to connect with your local community. This is a great way to separate your business from competitors and demonstrate a value beyond the products you sell to your local community. Engage in the connect
ion by being active in the community, outside your shop.Manage stock like your future depends on it. Too many retailers buy stock because they like it. They forget that they are not their customer. Some retailers leave stock on the shop floor too long. Buy stock which suits your customers. Ask them questions. Listen to them. Once stock is on the shop floor, measure its success and move it on if it is failing to meet your needs.Measure. Know the performance of your business in as much detail as possible. Measure everything which can be measured and drive the business based on what your data indicates. Make decisions based on these facts and not your emotion.Get your cost basis right. Every retail business has fixed costs which need to be as low as possible. Shop rent, insurance, telephone, internet, electricity… negotiate with suppliers of these and other fixed cost items to achieve the lowest cost possible for your business.Enjoyment. If you do not enjoy your retail busine
ss you are more likely to make bad business decisions and lead others to not enjoy the business as well. You can boost enjoyment by engaging in fun promotions, ensuring you get time off, relying on others to share the load and by not spending too much time standing still.
Yes, there are eleven tips, not ten. Actually twelve – under promise and over deliver is tip twelve. These tips are based on years of experience helping many different types of retailers.
Mark Fletcher is a retailer, business adviser and author based at http://kickstartretail.com/.
Tags: Insider, Retail, Success
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