Getting Back to Basics
Eight steps to get ready for the new year.
By Domenic Rinaldi -- Gifts and Dec, 1/1/2010 12:00:00 AM
Anyone who works in retail knows the first 100 days of owning a business are crucial to its success. What the owner does from the word "go" can change the entire future outlook. However, don't lose sight of the all-important initial steps once those 100 days are over.
Whether you're a long-time business owner or just starting out, getting back to basics can help you boost productivity and efficiency.
Here are eight critical steps to gain an introspective look into your store and help determine what to do throughout 2010.
1. MEET WITH KEY EMPLOYEES
Meet with everyone on your payroll, but prioritize those who are most important to the success of your business. Your employees are the front line of your organization. They can sometimes be more closely tied to how the business is doing and where there is room for improvement than you may be.
For new business owners, this step is crucial for easing anxiety over an ownership transition. For owners that have been at this a long time, reconnecting with your employees will give you great insight into where your business is going, what your customers are saying and how to improve frontline operations.
2. MEET WITH KEY CUSTOMERS
A business doesn't survive without customers. That's true for the family-owned store and the nationwide chain. Prioritize your most valuable customers. Who are the largest and most profitable clients? Ask what you can do better to retain their trust. Try to meet with customers your business has lost recently and ask what you can do to earn their business again.
Don't forget smaller customers. With proper care and nurturing, they can become your biggest spenders — and your biggest advocates. Consider appointing a go-getter employee as customer service rep for small and mid-sized accounts. Add an incentive if he or she brings in more business from those existing customers.
3. MEET WITH KEY SUPPLIERS
If suppliers ran into payment issues with the previous owner of the business, they'll probably be relieved to find it's under new ownership. On the other hand, if things went smoothly in the past, they might be nervous about your ability to continue this positive relationship. Reassure them by meeting with them right away and spelling out how you plan to work with them. They are your partners. Listen to them. Consult with them. They can help you succeed — or fail.
There could be big issues that need to be addressed. Perhaps one key supplier doesn't understand the concept of a deadline, or the products you have been receiving are of dubious quality. Manage these issues, and, if necessary, be prepared to make a change before you meet with problem suppliers.
4. GET ON TOP OF THE ACCOUNTING
Know who you are paying and why, how much you are spending and why. Who's paying you on time and who's not? These are all concerns you need to examine routinely. You need to not only identify problems but make sure you understand how your records are kept.
You may want to change how the books are done if you're not satisfied with the process. If you have a knack for numbers, consider bringing the basic accounting in-house. If not, use your network to find a trusted accountant. Typically, a new owner can save money through a simple financial review. Multiple small savings add up and drop immediate dollars to the bottom line.
5. GET HANDS-ON EXPERIENCE
If you're running a small business, this is probably the first thing you do because cash flow dictates you do much of the work. But if the business is larger, you still need hands-on experience in all aspects of the business. It won't make you an expert in marketing or customer service, for example, but it will give you a better understanding of the processes involved. If you detect a problem, you will have a better idea of what you should ask to fix it.
Having employees see you in the trenches can be a morale booster, and it puts employees on alert that you're paying attention to what they are doing. That can reduce laziness and theft.
6. CREATE AN ISSUES LIST
As you work your way around the business, you'll encounter issues that need to be addressed. Rank these by importance. As you rank your issues, develop an action plan.
7. REFINE YOUR BUSINESS PLAN
Take everything you have learned and determine how to optimize your opportunities. What needs the most attention? Where can your skills be most useful to growth? What aspects can you trust to certain employees? Don't rush into changes on Day 1; waiting 100 days will lead to wiser decisions.
8. CREATE AN ADVISORY BOARD
Assemble a small group of trusted advisors who you can meet with on a regular basis. These meetings should be strategic and have a strong emphasis on reality-based issue resolution. If you cannot put the right group together there are advisory groups you can join that will serve as a 'kitchen cabinet.'
Most psychologists will tell you one of the distinguishing traits of successful entrepreneurs is willingness and ability to commit plans to writing and execute those plans. Proactively manage your business and it will give you many rewards, both financially and personally.
We would love your feedback!
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