This advice is something we have shared before. But, it’s been updated for today. We have found, over many years, this to be the most useful, beneficial and appreciated advice for small business retailers.
Make every day tour pay day.
There was a time when small business retailers could rely on selling their business for a handsome increase on the price they paid thereby providing a good pay day, when businesses sold for a good multiple of net earnings.
Today, the best way to extract financial value from our businesses is to make every day your pay day, to not rely on your pay day being the day you sell the business.
If you do this, if you focus on making money every day, you get ahead, in small steps and increments for sure, but you do get ahead, and long before you actually sell your business.
Our advice is that you look at your business differently. This starts with the mindset of every day being your pay day. Each decision needs to be considered in this context.
Focusing on profit today will give you a better result today and make your business more valuable tomorrow.
Here are some suggestions for making every day your pay day:
- Make sure the shop feels happy. People will spend more in a happy business.
- Buy as best you can. If you better than usual, keep the additional margin for yourself.
- Take every discount opportunity. Paying COD or taking settlement discounts. If you have the capacity to do this, the extra margin adds to your pay day.
- Run with the leanest roster possible. Note, however, there is a fine balance between too few and too many.
- Always have successful impulse offers at high traffic locations. If something is not working, try something else.
- Have your best people working the floor, helping customers spend more.
- Make sure the shop looks appealing from outside.
- Charge more every time you can. Loyalty programs such as discount vouchers, bundling into hampers, multi buys such as 2 for 3 and other opportunities enable you to do this by blocking price comparison.
- Promote outside your store using online and social media opportunities.
- Leverage adjacency. Chase a deeper basket – people purchasing more each visit.
Be responsible for the profitability of your business. Don’t blame your suppliers, your landlord, your employees or some other external factor … it all comes down to you – the decisions you make and the actions you take.
If you relentlessly pursue profit with a clear focus you are likely to see profit grow. That’s better than waiting to make money when you sell because that’s less likely to happen in this market.
Doing all this relies on your measuring the performance of your business. The Tower Systems POS software helps with this. It is easy.