From Coffee to Cocktails: A Simple Strategy to Expand Your Network and Spark Creativity"

Are you feeling stuck in the day-to-day grind of running your business? Whether you’re managing a restaurant, retail store, or working from home, it’s easy to get caught up and forget to step outside for fresh perspectives. Here’s a fun and effective way to grow your business, build your network, and keep your sanity.

Stop Burying Your Head in the Business

One common mistake entrepreneurs make is getting too absorbed in their business. You might tell yourself you're working hard, but isolating yourself can stifle your creativity and limit your insights. It’s crucial to get out of your store, restaurant, or office to meet new people and see things from a different angle.

Instead of relying on feedback from the same group of customers or employees, step out and connect with new perspectives. You’ll be surprised how refreshing this can be.

The Strategy: Coffee or Cocktails?

Here’s a simple idea: grab your favorite beverage, whether it’s coffee or a cocktail, and invite someone new for a 30-45 minute chat. Think of customers, fellow business owners, community leaders, or even your property manager or leasing agent. These individuals can offer unique insights into your market and community.

No Agenda, Just Conversation

The goal isn’t to land a sale or pitch your business—it’s about gaining perspective. During your conversation, ask open-ended questions like:

• How have your shopping habits changed with inflation?

• What’s a product or service that would make your life easier?

• Where’s your favorite place to shop or eat, and why?

• What changes in our business community have you noticed and don’t like?

• What do you do for fun in the local community?

Follow Up and Build Relationships

After your meeting, send a thank-you note. Add their contact information to your database. You never know if this person will become a customer, referral source, or even an ambassador for your business. Plus, you’ll leave the meeting with new ideas and a fresh outlook—something you can’t get from staying inside the four walls of your business.

Valentine’s and Galentine’s promotions for every type of business!

Valentine's Day spending is expected to increase in 2025, following a record-breaking $26 billion in 2024

Significant others: Spending on significant others is expected to reach a new high in 2025. In 2024, consumers spent a record $14.2 billion on their significant others, which averaged to $101.84 per person. 

• Unique gifts: Consumers are expected to focus on more unique gifts, such as non-traditional gifts and barware sets. 

• Pets: Consumers ages 35-44 are planning to spend the most on gifts for pets. 

• Jewelry: Consumers are expected to spend $6.4 billion on jewelry. 

• Flowers: Consumers are expected to spend $2.6 billion on flowers. 

• Clothing: Consumers are expected to spend $3 billion on clothing. 

• Evening out: Consumers are expected to spend $4.9 billion on an evening out

Here are unique Valentine's Day promotional ideas.

1. Dry Cleaner

"Love Your Clothes" Promo: Offer a free garment cleaning with any cleaning order over a set amount. For an extra touch, attach a small rose or chocolate to the hanger of completed orders as a token of appreciation.

2. Veterinary Clinic

"Puppy Love Valentine's Package": Host a Valentine's photo session for pets and their owners with a local photographer. Bundle this with a discounted health checkup or grooming service to encourage bookings.

3. Liquor Store

"Build Your Love Basket": Create a mix-and-match section where customers can customize a Valentine's gift basket with mini bottles, mixers, chocolates, and glasses. Offer pre-wrapped bundles for those who want a ready-to-go option.

4. Restaurant

"Heartfelt Pairings": Offer a curated Valentine's menu with wine or cocktail pairings. Add a romantic keepsake like a mini photo frame or personalized dessert plate for couples to take home.

5. Boutique

"Valentine's Treasure Hunt": Hide small, heart-shaped tags with discounts or freebies around the store. Customers can find one per purchase, adding an element of fun and surprise to their shopping experience.

6. Salon

"Pamper Your Valentine (or Yourself)": Offer a "duo special" where couples (or friends!) can book treatments together, such as a mani-pedi for two or a couple’s blowout. Include a complimentary glass of champagne or a small gift like scented lotion.

7. Fast Food Restaurant

"Valen-Fries Special": Package fries in a heart-shaped container with a special dip selection, and offer a couple’s combo meal deal featuring festive packaging. Run a social media contest asking customers to share their best "fry date" photos for a chance to win free meals.

Each idea leverages the unique nature of the business while creating memorable experiences that customers can associate with Valentine's Day.

Here’s how your business can celebrate Galentine’s Day alongside Valentine’s Day with fun, friendship-focused promotions:

1. Dry Cleaner

"Bring Your Bestie Bonus": Offer a "two-for-one" deal where customers and their besties can both get one item cleaned for free with a larger order. Include a small gift, like a sachet of lavender, to thank them for celebrating together.

2. Veterinary Clinic

"Pet Parent Pals Day": Invite pet parents to bring their fur babies in for a Galentine’s-themed playdate, complete with free pet treats and discounted wellness checks. Offer a selfie station for them to take pictures with their pets and friends.

3. Liquor Store

"Gal Pal Cocktail Kits": Create DIY cocktail kits for groups to celebrate Galentine’s Day. Include recipe cards for themed drinks like “Pink Sparkle Spritz” or “Berry Best Friend.” Offer discounts on group purchases.

4. Restaurant

"Gal Pal Brunch": Host a special Galentine’s brunch with shareable platters, bottomless mimosas, and a photo booth with fun props. Include a small favor like a custom cookie or mini bouquet for each guest.

5. Boutique

"Style Squad Night": Hold an after-hours Galentine’s shopping event with champagne, snacks, and a mini fashion show. Offer discounts for groups who shop together and a raffle for fun prizes like accessories or gift cards.

6. Salon

"Glam for the Gals": Offer a group makeover package with hair styling, mini facials, or makeup touch-ups. Add a festive touch with heart-shaped cookies or a small beauty product for each guest.

7. Fast Food Restaurant

"Fries Before Guys Special": Introduce a Galentine’s meal deal for friends, featuring a shareable platter of fries with multiple dipping sauces and themed desserts like heart-shaped cookies or brownies. Decorate the space with Galentine’s-themed decor for an Instagram-worthy vibe.

How Small Retail Stores and Independent Restaurants Can Great their share of the “Singles and Starters” Millennials

In the ever-evolving marketplace, small retail stores and independent restaurants must adapt to appeal to their target demographics. One group with significant spending power is "singles and starters" millennials—young professionals, often single or newly independent, seeking experiences and convenience. Here’s how your business can capture their attention and loyalty.

1. Create Instagram-Worthy Experiences

Millennials value experiences as much as, if not more than, products. Restaurants can design aesthetically pleasing interiors and offer unique menu items that are not only delicious but also visually stunning. Small retail stores can curate product displays that invite photography. For instance:

• Restaurants: Feature colorful dishes, signature cocktails, or thematic decor that sparks conversation.

• Retail Stores: Develop themed product corners—think “self-care Sundays” or “winter cozy essentials”—that inspire customers to snap and share on social media.

2. Focus on Convenience

Singles and starters often juggle busy schedules and crave convenience. Streamline their experience by:

• Offering online ordering and delivery for restaurants.

• Implementing click-and-collect options or same-day delivery for retail stores.

• Simplifying checkout processes with mobile payment systems.

3. Highlight Local and Ethical Practices

Millennials are drawn to businesses that prioritize sustainability and community. Showcase your commitment by:

• Using locally sourced ingredients or products and sharing supplier stories.

• Implementing eco-friendly practices, like reusable packaging or waste reduction initiatives.

• Partnering with local artists or nonprofits to build community ties and foster goodwill.

4. Offer Personalization

This demographic appreciates businesses that cater to their preferences. Use data and technology to:

• Create personalized recommendations through loyalty programs.

• Allow customizable products or meals to suit dietary needs or personal tastes.

• Offer curated gift sets or bundles tailored to specific occasions, like “starter kits” for new apartments or holidays.

5. Host Events and Social Gatherings

Singles and starters often seek opportunities to connect with others. Your business can serve as a social hub by:

• Hosting networking nights, trivia evenings, or live music for restaurants.

• Organizing workshops or in-store pop-ups, such as DIY classes, for retail stores.

• Collaborating with local influencers or community groups to co-host events.

6. Leverage Digital Marketing

Meet millennials where they are—online. Ensure your marketing strategies include:

• Social Media Engagement: Regularly post engaging content on Instagram, TikTok, and Facebook.

• Reviews and Ratings: Encourage satisfied customers to leave online reviews and respond promptly to feedback.

• Email Campaigns: Share exclusive deals, event invitations, and personalized offers.

7. Provide Value Beyond the Sale

Establishing long-term loyalty requires more than selling products or meals. Add value by:

• Offering educational content, like recipes, styling tips, or home organization hacks.

• Sharing behind-the-scenes content to humanize your brand.

• Creating loyalty programs that reward repeat customers.

Conclusion

By focusing on creating memorable experiences, prioritizing convenience, and engaging authentically, your small retail store or independent restaurant can resonate with the singles and starters millennial demographic. This not only enhances customer satisfaction but also turns one-time visitors into loyal patrons and brand advocates.

The Q1 Blues - How to Keep Your Small Business Thriving After the Holidays

The holiday rush is over, and as we settle into the new year, many small business owners face what we call "The Q1 Blues." Independent retailers, restaurant owners, small eCommerce operators, and TikTok Shop affiliates know this all too well. Economic uncertainty, the looming possibility of tariffs, holiday debt, and shifting consumer trends favoring underconsumption make Q1 a tough season for sales.

But tough times call for smart strategies. Here are 10 actionable ways to help your business not only survive but thrive during Q1:

1. Engage Your Existing Customers

Your holiday shoppers are your warmest leads. Reach out to them with thank-you emails, exclusive post-holiday discounts, or early access to new products. Loyalty programs can keep them coming back.

2. Host Events or Promotions

For retailers, consider hosting clearance sales or workshops. Restaurants can offer themed nights, tastings, or special winter menus. Even online businesses can create virtual events or live sales on social platforms.

3. Leverage Social Media for Engagement

January might mean tighter budgets, but people still spend time online. Use this opportunity to share engaging, value-packed content like how-to videos, behind-the-scenes posts, or user-generated content.

4. Collaborate with Other Businesses

Team up with complementary businesses to cross-promote. For example, a restaurant and a local boutique could create a dinner-and-shopping package. Collaboration expands your reach without extra cost.

5. Diversify Your Revenue Streams

Explore new income opportunities. Restaurants can offer meal kits or catering. Retailers might try subscription boxes. TikTok Shop affiliates could diversify by selling complementary products or creating digital guides.

6. Focus on Financial Health

Analyze your holiday sales data to identify what worked. Use Q1 to renegotiate supplier contracts, streamline operations, and minimize unnecessary expenses.

7. Plan for Tariffs and Economic Shifts

Stay informed about potential tariffs and adjust your inventory accordingly. Look for local suppliers to reduce reliance on imports and control costs.

8. Run Targeted Email Campaigns

Email marketing remains one of the most cost-effective tools. Share helpful content, like trend forecasts or tips, along with promotions. Make it personal—tailor your messaging based on customer behavior.

9. Build a Referral Program

Word-of-mouth marketing is gold. Offer incentives for customers who refer friends. This keeps your loyal base engaged and brings in new business.

10. Invest in Employee Training

Use the slower season to train your staff. Upskilled employees can offer better service, which improves customer retention and boosts sales.

The Money’s in the Cards!

Gift cards have been the most popular gift for the past 5 years. That’s a pretty great reason to put a plan in place to accelerate your gift card sales this holiday season, no matter what type of business you own!

There are even more compelling facts:

Gift cards sales will account for over 18% of holiday sales!

Two-thirds of consumers have purchased at least one gift card

Retailers who switch from paper to plastic cards typically see a 50-100% increase in sales

The average amount loaded on a digital gift card is 10-15% more than a plastic gift card.

61% of gift card holders spend more than the amount of their gift card and 75% of those who overspend spend 60% more than the value of their card

Gift cards are most popular with teenagers

40% of gift card recipients do not use the total value of the card

As you can see, gift cards can significantly increase your bottom line in December and beyond so their promotion and sale are well worth your attention.

 Here are a few tips for selling more cards

            Plenty of in-store signage

            Ongoing employee training – ask for the sale
           (Would you like to purchase a gift card for a  friend
  or family member?)

            Use all other assets to promote, including website, social            
           media, email and any other advertising you may be doing

Create incentives for purchase
For example, get a $20 gift certificate for yourself with the purchase of a $100 card

Hint: If your average sale is about $150, then the incentive should be given on gift card sale of $200 – increasing your average sale!

Capture the late shoppers

More than one in every four digital or online cards sold in December are sold between December 21st and 24thEmail daily during week before Christmas.

Make it easy to purchase

Utilize your website, email and social to sell direct.

No matter what type of business you own, gift card sales can add to your bottom line this holiday season and well worth the effort to create a successful sales strategy!

How Small Businesses Can Turn Trends Into Sales

In an increasingly digital world, people are yearning for something screens can’t replicate: authentic, real-life experiences. Whether it’s sharing a laugh over a latte or discovering a hidden gem at a local boutique, customers are hungry for connections that feel genuine and tangible. For small retail and restaurant owners, this trend presents an incredible opportunity to create memorable moments that drive sales and build loyalty.

Here’s how you can capitalize on this desire for real-world experiences and transform your business into a go-to destination:

1. Create an Experience, Not Just a Sale

Customers are no longer content with simply buying products or enjoying a meal; they want an experience. Think about how you can enhance their time with you:

• For Retail: Set up interactive product demonstrations or host small workshops where customers can learn a new skill related to your products. For example, a clothing boutique could host a “build your perfect outfit” session with a stylist.

• For Restaurants: Host themed dinners, live music nights, or cooking classes that encourage customers to linger and engage.

By adding a layer of activity to your business, you transform a simple visit into a memory.

2. Embrace the Power of Storytelling

People love a good story, especially one they can connect with emotionally. Use storytelling to make your business feel more personal and relatable.

• Share your journey. Why did you start your business? What motivates you every day?

• Spotlight your team. Introduce the people behind the counter or in the kitchen.

• Highlight local ties. Showcase your connections to the community, like sourcing ingredients from nearby farms or collaborating with local artisans.

These stories don’t just humanize your business; they give customers a reason to support you over larger competitors.

3. Turn Your Space Into an Instagrammable Destination

People crave experiences they can share with friends—and that includes their social media followers. Make your business photo-worthy to encourage organic promotion:

• For Retail: Design a cozy corner with eye-catching decor where customers can try on items and snap photos.

• For Restaurants: Present dishes that are as beautiful as they are delicious or invest in a unique design element, like a neon sign with a catchy phrase.

When customers share their visits online, you gain free advertising and reach new potential customers.

4. Foster a Sense of Community

People are drawn to businesses where they feel like they belong. Build a loyal following by cultivating a welcoming atmosphere:

• Host local events. Partner with other small businesses or organizations to hold pop-ups, markets, or charity drives.

• Encourage customer interaction. Create opportunities for customers to chat with each other or your team, whether it’s through communal seating or hands-on activities.

When customers feel connected, they’ll return—not just for your products, but for the sense of belonging you offer.

5. Offer Exclusive In-Person Perks

Reward customers who visit your business by providing something they can’t get online.

• Special promotions: Introduce “in-store only” discounts or early access to new products.

• Unique menu items: For restaurants, offer a dish or drink available exclusively to dine-in customers.

• Limited-time events: Host pop-up sales or tastings that encourage customers to make the trip.

These perks not only incentivize visits but also make customers feel like they’re part of something special.

6. Collect Feedback and Iterate

The best way to know what your customers want? Ask them! Use surveys, casual conversations, or comment cards to gather input on what they love about your business and what they’d like to see improved.

Make adjustments based on this feedback to ensure your offerings align with customer desires. When customers see you’re actively listening, they’ll be more likely to stay loyal.

As people seek more meaningful, real-life experiences, small businesses have a golden opportunity to step up and deliver. By focusing on creating memorable moments, building community, and offering unique perks, you can position your business as a beloved destination.

The key to success lies in going beyond the transactional and tapping into the emotional—the experiences, connections, and stories that make your business truly unforgettable.

So, what experience will you create for your customers today?

Don’t Sleep on Dec. 26: How to Prep for Post-Holiday Sales Success

The holiday hustle doesn’t end on Christmas Eve—it shifts gears. December 26 is one of the busiest shopping days of the year, with customers eager to spend gift cards, exchange items, and snag post-holiday deals. For restaurants, it’s a prime opportunity to cater to shoppers refueling between sales or families looking to extend their holiday celebrations.

Here’s how you can prepare your business for a successful Dec. 26:

1. Promote Early and Often

Let your audience know what to expect:

• Retailers: Advertise your post-holiday sales now. Use phrases like “Boxing Day Bonanza” or “Clearance Countdown” to build excitement.

• Restaurants: Push a “Holiday Hangover Brunch” or special offers for groups, enticing tired shoppers to take a break with you.

2. Prep Your Inventory and Team

• Retailers: Restock popular items, organize clearance racks, and ensure your staff knows return/exchange policies.

• Restaurants: Plan for high traffic. Stock up on ingredients and schedule extra hands to keep things running smoothly.

3. Maximize Gift Card Redemptions

People will be ready to spend gift cards they received for the holidays.

• Retailers: Highlight items perfect for gift card shoppers, like new arrivals or exclusive post-Christmas collections.

• Restaurants: Offer “bonus bucks” for those using gift cards, such as a free dessert or appetizer with their meal.

4. Create an Experience

The holidays may be over, but the festive vibe doesn’t have to end.

• Retailers: Set up an inviting space with cheerful music, complimentary coffee, or even a small gift-wrapping station for those shopping for New Year’s gifts.

• Restaurants: Keep the holiday decor up for a cozy ambiance and feature limited-time specials that feel like a continuation of the season.

5. Leverage Social Media

Get the word out about last-minute deals, extended hours, or special offers. Post stories, reels, and updates showcasing what customers can expect when they visit you. Encourage them to share their experiences with your business for a chance to win a prize or discount.

The Day After Christmas Is YOUR Day

December 26 is the perfect opportunity to keep the momentum going. With a little preparation, you can end the year strong and set the tone for a successful 2025.

So, what are you doing to prepare for the post-holiday rush? Share your plans in the comments—we’d love to hear your strategies!

P.S. Don’t forget to thank your team for their hard work this season. A little appreciation goes a long way!

5 ideas to make Small Business Saturday your day!

Consumers are better understanding the positive impact shopping small can have on their community.  You can capitalize on the momentum by actively participating in Small Business Saturday. 

In 2022, consumers spent an estimated $17.9 billion at small businesses on Small Business Saturday. 

So if you’re a locally owned retail or restaurant, stay out of the Black Friday fray and go all in on November 30th on the holiday designed just for you!

1.  Start here
Go to the American Express website to claim your free collateral and business listing. https://www.americanexpress.com/us/small-business/shop-small/studio?intlink=us-mer-sbrc-sbs-studio

2.  Create special offers designed to bring customer in – and return.
Deep discounts aren’t always in the best interest of small businesses so create innovative opportunities designed to get customers in for the event AND bring them back again on a later date.

• For every $100 you spend get a $20 gift certificate to use later.

• Triple rewards points to your loyalty members (and anyone who signs on)
  on Small Business Saturday.

• Restaurant -purchase a meal and receive a gift certificate for use on your next visit.

• Salon/spa - Pre-book your December appointment and get a free blowout or mini massage in January.

• A free gift with purchase.

• Make a charitable donation for every purchase

• Free service with purchase (for example, if a customers buys $250 in
  clothing, they can make an appointment to come back in for a free styling session.

If you do want to discount, think about limiting sales to certain items or category or items or certain day parts. Remember, you don’t have to put your entire store on sale or compete with Walmart to be successful. Create offers that resonate with your customers and make your store stand out!

3.  Make it a special day

Make Small Business Saturday and festive and fun experience. Offer hourly raffles or deals, entertainment, and refreshments. Hide a toy or small gifts inside your store for visitors to find. Show off your personality and your store far beyond the price tags.

4.  Promote

Promote big and promote often!  Post your event on your website, send multiple emails to your database and post on social media. Change your Facebook header to a Small Business Saturday message. Create a Facebook event so people can show interest. Use plenty of in-store signage. Let people know your store or restaurant is THE place to be on Small Business Saturday.

And most importantly, deliver your personal backstory. Let people know more about you, your commitment to the community and why you love what you do. It helps customers feel good about buying from you.

5.  Collaborate and co-promote
If your center has a number of locally-owned businesses, pull them together to make a bigger impact by cross-promoting the entire group of small businesses ready, willing and able to service customers on Small Business Saturday.

November 30th is your opportunity to bring your small business front and center as an important part of the community and one people can feel good about patronizing!

Do you have an emergency plan for your business?

Let’s get practical and discuss your company's emergency action plan. Are you prepared for a weather related emergency, a fire, a burglary or even an extended power outage? What if a customer falls ill in your store? And let’s not forget natural disasters like hurricanes, snowstorms and tornados.

It’s not fun to talk about but why not take a couple of minutes right now to create an emergency plan that could protect your employees, your establishment and the future of your business.

Here are a few questions to get you started. Your insurance company may have more detailed emergency plan templates for your use.

Is your insurance adequate and up- to- date. Do you have the appropriate numbers to call in several places?

Do employees have all appropriate emergency numbers?

Do you have a phone tree in place for efficient communication between all employees?

Is your data backed up to a third party server or the cloud?

In the event of predictable emergencies like hurricanes or blizzards which could result in water leakage and in which you have some warning time, do you have a protocol for getting merchandise off the floor or in some way protected from the elements should there be time?

Are there any critical tasks to be handled for example, hurricane shutters deployed?

How will you contact customers in the event of a prolonged closing? What if there’s a customer waiting on a timely delivery (i.e. a wedding cake?)

Do you have a safe place for all important paperwork, including insurance papers?

Once you complete your emergency plan, review it with your employees on a regular basis to make sure everyone is prepared. Be sure employees know their safety is the first priority and what they should do in the event of a specific type of emergency.

A little preparation today could save you a lot of heartache.

Build the Team that Builds Your Business

One of the biggest perks missing for most retail and restaurant employees is the opportunity for advancement and recognition. Even part time and younger workers who have no intention of making retail their forever career are well-served by receiving recognition and promotions for a job well done. And selfishly, for your, the business owner, a satisfied and proud employee is better for business.

Good people react favorably to advancement. So how can you easily structure a program that inspires and rewards employees?

Start with a milestone ladder. This is just an example. You can adapt to suit your business and culture.

Apprentice
Junior Associate
Senior Associate
Team Leader
Management

Now, create a set of criteria for each level of advancement. Here are few ideas to get you started. Again, tailor the levels to your own business and the desired behavior you’re trying to elicit from your staff.

Minimum number of hours works to reach the next level
Meeting performance goals (sales, administrative tasks, social media postings)
Positive customer reviews
Increased average sale
Consistency in being on time and not calling out
Preparation for and leading staff training meetings

With each level of achievement, offer the employee a small raise, gift card, a certificate, a staff pizza party or even a name badge with increasing number of stars or new title. What about business cards? We rarely see this but when an associate is able to offer a business card to a customer, it gives that customer a better connection to your business through the employee relationship and builds credibility. I recently ate at a restaurant where the waiter offered his business card and said, “I hope you enjoyed your service. Please request to be seated in my section when you return.” That’s powerful!

Next step is training. Even the best structured reward plan, the most inventive career path or the most enthusiastic motivation won’t give you the desired results unless your employees are well trained. This means you need to go far beyond onboarding. It’s about consistent, meaningful and measurable education.

When your staff is well trained, they perform better. When they perform better, they have greater job satisfaction which ultimately leads to increased tenure. It’s another win-win.

You’ve heard the adage: hire for personality, train for skill. Training can create a significant improvement in staff attitude and performance but only if you believe in it as well. To half-heartedly deploy a program that’s inconsistent and lacks meat, only wastes your time and theirs.

Think it’s too much work? I’m going to give you a 4-time per month sales training program outline right here you can use as the basis of your annual plan. You can probably outline your entire years’ worth of training in about an hour. Figure on four training sessions per month each lasting about 30-45 minutes.

Week One
Sales and customer service training

Choose one micro topic per week, i.e. customer greetings, upselling, asking for emails, active listening, etc. Introduce the topic and processes for how you’d like each addressed. Some weeks, add in a real life scenario and have employees role play the different ways to handle the situation and agree on the best solution for the future so you are all working on a standardized process. Other weeks, host brainstorming sessions and engage the entire staff in creating new ideas, solutions and more efficient procedures for your business.

Week Two
Product knowledge

Choose one line of products or specific menu items and discuss their benefits to your target audience and their advantages over the competitors. Invite vendor sales reps to come in once a month to discuss their product lines and give additional sights into features and benefits. If you are really ambitious, invite your staff on a field trip to competitor stores or restaurants to see the differences for themselves and report back to the group.

Week Three
Team member led discussions

Delegate one session each month to your employees. Supply them with a list of books, online webinars, trade publications or business books. Ask them to present key points at a staff meetins. The purpose of this type of training session is to expose your team to the various aspects of business, including trends, customer acquisition, pricing, marketing, demographics, key metrics, etc. A better knowledge of how business works makes your employees more valuable.

Week Four
Practical tasks

Devote one week each month to the practical aspects of running your business properly and efficiently, for example running the POS, new merchandising ideas, cleanliness, etc. Cover policies like cellphone usage, the importance of honoring schedules and other hot button issues..

A few tips for running great training sessions

Focus on a small tidbit each week, not broad topics

Occasionally offer small rewards for active and enthusiastic participation,
especially for the introduction of actionable new ideas

Be consistent and make participation mandatory

Make it fun!

Explain the “why” behind each topic

Video tape each session for future use and reference

Take it one step further:
Create a list of online courses for extracurricular learning. There are a near infinite number of free webinars on sales, marketing and business, as well as courses on platforms like Udemy.com that start as low as $15. Give team members a list of approved courses and create a reward system for completion.

When employees learn more about your business, they become valuable assets and a productive and knowledgable team will help you build your business.

Using your business to make connections

It’s a great day to try something new!

If you’re a fan of social media, I’m sure you see people try new and unique things all the time. Sometimes they work beautifully.  Sometimes, you’re just left scratching your head.

I noticed a trend on Tik Tok that’s exciting and interesting. It’s revolves around people trying to make connections.  It seems that, whether due to remote work, relocation to a new city or a post-Covid hangover, people are tired of going solo and seeking real connections.  

Two interesting social media-based attempts to bring people together have proven to be very successful and can easily be replicated in any restaurant or retail business.

The first example, a young woman who was new to NYC, started walking in Central Park every Sunday. She posted on Tik Tok that she was looking to make female friends and invited them to join her every Sunday at noon.  The response was overwhelming, with hundreds of women now meeting and connecting on their weekly walks.

Another woman did something truly bold and wonderful.  She reserved a table for 6  at a neighborhood restaurant and invited strangers to join her. She created a Tik Tok video explaining she was interested in making friends and to join her for drinks and dinner.  It was a bold and vulnerable thing to do. She admitted in the video that she was nervous no one would show.  Later that night, she posted a video of a full table of new friends enjoying their meetup.

The commonality in these examples is purity of purpose. No selling. No agenda. The hosts simply wanted to bring people together recognizing the need is great.

How can you replicate this type of connection event for your business?  Simple.

If you have a restaurant, create a meet up table available on a certain day/time each week.  Offer a special menu as well for that table if you are inclined. 

Other retail businesses might create a weekly walking group,  a craft group, a “new to town “ group or some sort of event that relates back to your target demo.

To make this type of event successful and buzzworthy:

Provide a why

Be vulnerable and sincere with your intention of bringing people together for the purpose of connecting. For example, you might say, “I remember how lonely it felt when I moved here.” Maintain that sincerity throughout the promotion. The minute you turn it into a sales pitch, you’ve lost the battle.

Promote

Promote via a personal video. Show the table or venue you’ve reserved for the event. Give the potential guest as much information as possible so they know what it’s going to look and feel like. It takes courage to venture out on one’s own and you can do a lot to make it more comfortable with sincerity and a lot of information.

Small is good

This is key.  This type of promotion isn’t about drawing large crowds necessarily. It is about creating a very comfortable environment for whomever shows up. If the people you bring together make a connection, the event will create its own dynamic.  

When people arrive, do everything possible to make them feel welcome. Make introductions.  Hospitality is your primary goal.

You may have to host a few of these events to gain traction but if you get a win, it’s a no-cost way to establish extraordinary goodwill for your business.

More isn’t More. What you can learn from Costco and Trader Joe’s. (Copy)

I’ve been obsessed with reading about Trader Joe’s and Costco lately. We can learn a lot from these stellar companies, especially the way they so thoughtfully manage their product selection.  The key to their success  (and it’s not rocket science) is they offer what customers want to buy or at the very least, what customers think they want to buy (no one really needs a 25-pound tub of peanuts, right?)

The average Costco warehouse stocks only about 3700 SKU’s in a 144,000 square foot store. Just to give you an example of an extreme “more is more” mentality, I worked with a 3,000 square foot. toy store that stocked 4200 SKU’s! Visitors were so confused they just turned around and walked out.

Most examples of “more is more” aren’t this extreme but I see it all the time with my clients. An addition of a line here, a few new menu items there and none of it pays off in the end! The reason?

People don’t want more choices. They just want what they want!

Barry Schwartz, author of the Paradox of Choice, says too many choices can lead to decision-making paralysis, anxiety, and stress. By proudly offering a smartly curated collection of items that target your ideal customer avatar, Schwartz say you are claiming, “You can’t have everything but everything we’ve got is worth having.”

Are you guilty of the “more is more” mentality? If so, it probably a sign that either don’t know your customer as well as you should or don’t have confidence in your ability to purchase on their behalf.

But with a little research and a bit of confidence, you can get past this. And you really should. After all, your ability to purchase properly for your customer is the key to improved sales!

Here are a few tips to get started.

Pull POS reports of your top 20% sellers
Analyze them for 3-6 months. What do these items have in common

Were they in the same price range?
Were the majority sold to your best customers?
    Regular customers?
Were they all displayed in the same area or the same way?
Are the similar in nature or pricing?
Were they mostly sold by the same person?

You get the idea. Do a forensic deep dive into what’s selling to whom, when and why.
Yes, it takes a little effort but this is your business!

Now take a look at your bottom sellers
Can you find commonality in the items that always end up on the sale rack or rarely move?

 Put those bottom sellers on sale or take them off your menu! You don’t need them. They’re messing with cash flow and making your business less exciting. Going back to the toy store example, a sale- by- item report revealed only 1800 SKU’s had sold more than one in 6 months. That means more than half his stock never moved! His overbuying was killing his business.

Ask people what they want
I love the idea of doing short, in person surveys with customers and visitors. Just a few questions will get you a lot of information. Find out what types of items they like. The price points. How often they buy. How they use your products. Retail stores and restaurants are mini research labs. Every person that walks in can give you valuable feedback that will help you fine tune your selection to the point

Search for the unicorn
Once you’ve done the research and are more intimately connected with your customer avatar, look for one or two items that scream, “I know you and I know what you want.” In today’s retail environment, you have to find ways to distinguish yourself and the way to do that that is finding a few things that are exclusive to you and resonate beautifully with your tribe.

Take the time to go through the process. And don’t be afraid to offer less, especially when less can translate to improved sales and more loyal and emotionally connected customers. The last thing anybody needs is more stuff. They can go to Amazon for that!

Until next time remember….
You can do this!
Angel

Read more about Costco and Trader Joe’s.

https://www.businessinsider.com/trader-joes-how-gets-you-spend-money-psychologist-2019-1

https://thehustle.co/costco-membership-economics/amp/

Download my Customer Avatar Worksheet

Click here

6 inventory metrics you should track (and how to do it)

Francesca Nicasio 
Vend's Retail Expert and Content Strategist
https://www.vendhq.com

Imagine you’re running a retail store that always has the right products at the right time. You don’t deal with surplus inventory, and you never run out of the products your customers want.

That’s the dream, isn’t it?

But the reality of inventory management isn’t so great. Stores often struggle with stock control, and problems like shrinkage, excess inventory, and stockouts are common.

Look, no silver bullet can fix your inventory management woes. But there is one practical step you can take to minimize stock control issues, and that is to look at your inventory data.

Why track your inventory management metrics?

By tracking your stock control data and metrics on a continuous basis enables you to spot trends and gain insights that can help you make better decisions for your inventory. 

But what should you track, exactly?

Glad you asked. In this post, we’ll shed light on the top inventory metrics to keep an eye on. Check them out below:

1. GMROI

This stands for Gross Margin Return on Investment, and it tells you the amount of money you got back (i.e. ROI) for every dollar you spent on inventory.

GMROI measures your profit return on the funds invested in your stock. It answers questions such as, “How many gross margin dollars did I make from my inventory investment?” or “For every dollar invested in inventory, how many dollars did I get back?”

The formula for figuring out your GMROI is: Gross Margin / Average Inventory Cost

So let’s say a retail store has a gross margin of $55,000 and an average inventory cost of $30,000. Its GMROI is 1.83, and that means the store earns $1.83 for every dollar in inventory.

Once you’ve determined the GMROI of your products, go a step further and “work out how much profit you make as a proportion of your scarce resources.” That’s the advice of Damon Shinnie, the Finance Manager at Find Me a Gift.

“For example, if you have limited space in your warehouse what was the profit generated per square foot of storage space occupied? If you are short on cash, what was the profit generated per average value of stock held?”

Knowing the answers to such questions will enable you to make better decisions when it comes to what products to stock up on or which items to discontinue.

2. Shrinkage

This refers to the difference between the amount of stock that you have on paper and the actual stock you have available. It’s a reduction in inventory that isn’t caused by legit sales. The common causes of shrinkage include employee theft, shoplifting, administrative errors, and supplier fraud.

The formula for shrinkage is: Ending Inventory Value – Physically Counted Inventory Value

Shrinkage can also be expressed as a percentage — i.e. Shrinkage % = Shrinkage / Sales x 100

According to a survey by the National Retail Federation, the average inventory shrink as a percentage of sales was 1.38% in 2015. It’s important to note that data varies from one retail sector to the next.

Specifically:

Grocery – 3.6%

Specialty men’s and women’s apparel – 1.2%

Discount, mass merchandise or supercenter retailers – 1.1%

Measure shrinkage in your own store and see how you stack up against other retailers. This should give you an indication of how well your store is doing when it comes to inventory accuracy.

3. Sell-through rate

Sell through is the percentage of units sold versus the number of units that were available to be sold.

To calculate for this metric, use the formula: Number of Units Sold / Beginning Inventory x 100

Let’s say a bookstore received 500 copies of a thriller novel from the publisher and sold 95 books after a month. The book’s sell-through percentage is 19%. In some cases, the unsold merchandise will be returned to the manufacturer (or in the bookstore’s case, the publisher). Some stores can also tack on a discount on the items to improve the sell-through percentage.

4. Stock turn

Also known as inventory turnover, stock turn is the number of times stock is sold through or used in a given time period. In most cases, the higher the stock turn, the better it is for your store because it means you’re selling a lot of merchandise without stocking too much inventory.

The stock turn formula is: Cost of Goods Sold / Average Inventory

Let’s say an apparel store’s average inventory is $25,000 and the cost of goods it sold in a 12-month period is $100,000. Its inventory turnover is 4.0, and this means that the store sold out of its inventory four times that year.

Having a high stock turn means you’re being efficient. As Bruce Clark, an associate professor at Northeastern University puts it, “We like big numbers here because that means we are efficient: we carry very little inventory to support a certain level of sales.”

How often should you look at stock turn? According to Clark, “conventionally this is always calculated annually: if we sell $1 million dollars in goods annually on an average inventory of $100K, our inventory turns = 10. This can be calculated for shorter time periods as well as long as the periods are consistent (monthly sales divided by monthly average). Businesses that are highly seasonal may want to look at shorter periods in particular, since inventory needs are very different in high seasons vs. low.”

5. Product performance

Your top and lowest performing products should always be top of mind, so track this metric regularly. Being fully aware of your of product performance means you can stay on top of stock orders, merchandising, and sales, among other things.

What products should stock up on? Which items need a promotional push? The only way to answer these questions is to know your product performance like the back of your hand.

Adam Watson, managing director at Hollywood Mirrors, says that product performance is something he constantly tracks.

“I look at my stock inventory every Monday morning, and the first thing I look at are my most profitable products. I apply the 80 / 20 rule or Pareto principle in that 20% of my product provide 80% of my profitability, so I focus on this 20% of products first.”

He adds, “I work out how long it takes to receive the product from a supplier, the amount I sell in a week and the amount I currently have in stock. I usually keep 30 days worth of product in stock as I have 30-day payment terms with suppliers, making this is ideal for cash flow.”

“Next, I look at dead inventory or slow movers that are overstocked. I then either improve my listing online or be more competitive on price.”

How to measure product performance: Tracking product performance should be fairly simple if your POS or retail management system has the right reporting capabilities (and most modern ones do!). Look at your product and sales reports, and pay attention to things like which products have the most and least sales counts, as well as which items are driving the highest and lowest revenues.

6. Lost sales

When we first published this post, retail expert Chris Petersen of Integrated Marketing Solutions left a comment advising retailers to track lost sales.

According to him, lost sales “can be estimated by the days a SKU is out of stock X the average or expected sales rate.

Lost sales estimates is a good “counterbalance” metric to gauge if you are trying to run too lean on inventory, especially for top-selling SKUs.

You know your metrics. Now what?

So, you’ve familiarized yourself with different inventory measures — great! How do you extract value from them? The short answer is to track and use these metrics. It’s important to regularly monitor your inventory numbers so you can incorporate them into your business decisions.

Accomplishing this depends on your business and the tools you have. The best way to get the inventory insights you need is to automate how data is collected and analyzed in your business.

You can do this by using a point of sale or retail management system with strong reporting capabilities. If you’re using a modern POS or retail system, see if it has retail analytics capabilities or talk to your vendor about accessing the data and reports you need.

Not using a modern POS or retail platform? You can use a program such as Excel to track your inventory and metrics. It’s not ideal (especially if you have an extensive catalog), but it’s far better than crunching the numbers manually — or worse — not tracking your metrics at all.

Make smarter decisions with the right inventory metrics

Curious as to how you can apply data into your decision-making? Here are a few examples:

Merchandising and marketing your products more effectively

Looking at data such sell-through and stock turn will help you get a clear picture of your top performing products as well as which items aren’t moving off the shelves fast enough. From there, you can make decisions on how to merchandise your products in-store and how to sell them.

Take a look at what T-We Tea, a San Francisco-based retailer that sells house-made teas and accessories, did with its products. They noticed that their low-margin items (such as tea accessories) were moving faster than their high-margin ones (house-made teas) so they opted to group them together at a slightly lower price. As a result, they were able to move products faster while maximizing profits at the same time.

Planning what items to order and when

Knowing how fast a style is moving or how much return you’re getting out of a product can help you plan out your inventory ordering.

For instance, if you discover that an item sells out every couple of months or so, then you can plan out how often you should be ordering that SKU. On the other hand, knowing your GMROI for different products can give you a better idea of which items are worth investing in, and how much you should spend on them.

Improving your processes

Measuring metrics such as shrinkage doesn’t just help you measure inventory losses, it can also give you valuable insights for improving your store procedures and security.

If your inventory discrepancies and losses are quite large, perhaps you need to set better user permissions that restrict employees from seeing information or performing tasks outside their job description.

You can also drill down on shrink by category or store area. Let’s say shrinkage is a lot higher in a particular department compared to the rest of the shop. Armed with this information, you can take a closer look at that department to figure out the reason behind high shrinkage. Are the items more prone to shoplifting? Are the products located in an area that can’t be monitored by your staff? The only way to find out is to look at the data and investigate.

Here’s another example: let’s say you discovered that administrative errors (e.g. pricing errors, mistakes in markups or markdowns) are causing major discrepancies in your inventory records. You can use that information to start improving how tasks are carried out in your stores. You can, for example, automate certain jobs to reduce human error.

Remember: the lack of knowledge is expensive

We’ve all heard the cliche “knowledge is power.” It’s a compelling statement, but just as powerful is the fact that the lack of knowledge is expensive.

This couldn’t be truer in the world of retail. If you don’t know your numbers around inventory or if you’re not aware of what your customers like and dislike, then you could be losing a lot of money. If you fail to make the right decisions around merchandising, marketing, and customer service, you’ll end up losing customers and missing out on revenue opportunities.

Don’t let that happen to you. Start tracking your retail numbers. Only then will you be able to truly figure out what’s going on in your business. We hope this post brings you closer to doing that.

This article was previously published at Originally published on the VendHQ retail bloghttps://www.vendhq.com/blog/inventory-metrics-to-track-and-how/

How does your store make money?

One of the most common mistakes I see with small retailers is the failure to analyze sales revenue.  They may know top line sales and bottom line profits, but don’t take the time to understand the exact composition of sales.  Are you selling to new or existing customers?  Do you sell more of item A or Item Z or items A and Z together?  What is the average sale or sale per employee?

Ask the typical small store owner if they track Key Performance Indicators (KPI’s-see list below) and they answer, “It’s all in my head.”  With this tracking method, they’re probably missing out on some extremely important -and easy- ways to increase revenue.

KPI’s provide POWERFUL insight that can help determine targeted marketing solutions, pricing strategies, hiring needs, new revenue opportunities and a host of other strategies that can result in increased revenue and decreased expenses.

KPI’s are easy to track with point of sale software by simply inputting correct and detailed information for each customer and learning to pull the appropriate reports daily, weekly and monthly. I find many retailers don’t take the time to learn the capabilities of these systems. For those retailers that don’t have a POS system, I recommend tracking sales manually to get a grasp on the when/what of sales.  It takes some effort but can pay off big in the long run.

How can KPI’s help grow business? Here are just a few examples:

Average Sale/Sale by Category 
I worked with a coffee shop that needed to increase revenues by 10 percent which represented an increase in sales of about $2000 per month. She was going to invest $6000 in advertising to increase traffic to achieve her revenue goal. By knowing her average sale, which was $3.95, we were able to bundle two items as a special at $ 4.75. Just by upselling her regular customers, she was able to increase revenues without spending a dime or giving up any profitability.

Sales by Day of Week/Daypart
By knowing when you are selling (or not selling) you can create a strategy to improve business during peak and non-peak times.  For example, a pizza restaurant offered a daily lunch discount each weekday  Upon  analyzing his day/daypart numbers, we found that Thursday and Friday lunches were triple the volume of Monday through Wednesday. Since business was so good later inthe week, there was no need to continue offering a discount on those days. The owner was able to increase profits during the peak sales days and offer steeper discounts to lure customers during the off days.

New vs. existing clients
A beauty salon client did not track new vs. existing clients or client retention. Once they analyzed their numbers, it was clear they were getting plenty of new clients; they just weren’t retaining them. By understanding that, they were able to implement a two-fold strategy that included customer service training for the stylists to insure greater customer satisfaction- and ultimately their return -as well as a new customer welcome program that offered new clients discounts for pre-booking their next appointment.

Customer profile/demos
Take the simplest customer demo – the zip code. I recently worked with a franchisee for whom the franchisor did a quarterly mailing. In comparing the zip codes of the mailing to the actual client zip codes, we saw that the franchisor mailing list did not match the current client base. Armed with this information,  the client was able to inform the franchisor so they could create a more geographically accurate mailing list and thus, better results from the marketing dollars spent.

These are just a few examples of how understanding the nuances of revenue can help a small business owner create better – and sometimes very easy – strategies to grow business.

Key Performance Indicators
While not all are applicable to each business, here’s a list: 
                Sales per employee
                New clients per week vs. repeat clients
                Sales per square foot
                Average check
                Sales by category
                Merchandise vs. service
                Lead sources
                Sales by day of week/day part
                Sales conversion rates
                Customer profile

Which work for you? Start tracking them today. Learning how you make your money is the first step to making more!

Until next time remember,
You can do this!
Angel

It’s all about the customer

Your business foundation needs to start with the most basic of premises – how does your business serve your customer?

It’s important to remember, your business has nothing to do with you. It has everything to do with the customer.  

The product you sell. The service you provide. The price you charge. All of it has only one purpose: to attract and retain people willing to pay for it. You can have a million people walk by or stop in but if what you’re doing doesn’t resonate, it won’t matter.  Don’t confuse bodies with buyers.

I walked up to a vendor in a food hall at 8 a.m. one morning to grab some breakfast. It was actually a stealth visit to observe this particular vendor who wasn’t performing well.  

The menu board was confusing and difficult to read. It was one of those chalkboards with fancy writing – and not well done. The guy behind the counter was doing busy work and never acknowledged me while I stood there for a while trying to figure it out. Finally I asked, “What do you have for breakfast?” Without even looking up he said (actually more like grunted) that the breakfast menu was on the board. I spent a few more minutes trying to decipher the menu and finally found the breakfast section. At that point, it was already more trouble than it was worth.  The items offered were heavy, high-fat breakfast sandwiches; the type of food most of us eat occasionally but not on a Tuesday morning.  I asked him if they had anything lighter to eat.  He said no. So….no service. Wrong product. No sale.   

In later discussion with that same guy who turned out to be the owner, he refused to acknowledge that maybe he needed to adjust his menu and menu board to have greater appeal, not to mention his level of customer service and hospitality. Despite the fact he had almost no breakfast business, he insisted his breakfast menu was the result of his impeccable skills as a chef and that people should learn to love it.

So to him, a paying customer was clearly much less important than what he determined to be a unique menu.  Add to that a complete lack of customer service and you’ve got yourself a disaster waiting to happen.  It should come as no surprise to you he went out of business shortly after that. And he blamed everything and everybody for his demise – except himself.

You might think this is an extreme example but I assure you, it is not. Many small business owners become immersed in their “vision” or in the day- to- day detail of their businesses – unpacking new inventory, doing the books and scheduling employees.  The customer ends up being a distraction.

Let me be perfectly clear: the customer is not a distraction to your business. The customer is your business.

Another equally annoying experience happened in a large department store. Their “revamped” shoe department was my idea of hell. Each designer has their own little store- in- store set up spread out over an overwhelmingly large space. If you want to try on shoes, you need to move from one “store” to the next. You can’t just choose shoes from different designers.  You have to keep making pit stops and try on shoes in the individual stores. Now that might not be so bad if there had been associates in each department. But that’s not how it’s set up.

In order to try on the shoes, you have to wave down an order taker of which they had too few on the floor. In my case, I flagged down a sullen young man with a smart device. Never looking up, he checked on the availability of the shoes in my size, put in the order and walked away. He didn’t say, “They’ll be out in 5 minutes.”  He didn’t say hello. He didn’t say a WORD!  Nearly 10 minutes later, someone brought the shoes, dropped them on the floor in front of me and walked away. That was it.

Now, it just so happened I wanted to try one of the pairs in another size. Well apparently they didn’t take that into the service equation.  I never saw him again. Never got the shoes I wanted and walked out without buying anything.

In both these examples, the owners had ideas. In the case of the food vendor, he created very fancy and intricate breakfast items that no one wanted. In the case of the department store, their big idea was expansion and automation. I can assure you, in neither case did anyone even think about the customer!

I submit that in the customer service business, we really approach the whole thing backwards. We think it’s all about “our” idea and “our” concept and “our” passion. But it’s really about providing an experience, product or service that wows the target customer. Your customer is the reason for your business – not you!

Yes, you have a passion for your concept and that’s what enables you to get excited about going to work every day.   But I encourage you to take a minute to rethink -  to reroute that passion from your business and channel it to your customer.

Typically, a store or restaurant owner voices concerns about the number of visitors or the amount of sales – and the need for more of both.  Legitimate concerns, of course.  But here are some questions I’d love to hear from an owner about the people who visit their establishment.

I wonder if they loved buying here.
Did they enjoy the experience?
Did they feel valued?
What else can I do or sell that would elevate this experience?
Did I do everything I could to make sure they come back?

Now more than ever, it’s time to convert to a consumer-centric business model, one in which you laser target a specific customer profile, dig deep to determine not just what they want to buy but to figure out the best ways to bundle, service and add to the mix in ways that provide extraordinary benefit to that customer, inspire fierce loyalty and blow the competition out of the water!

How a field trip can improve your retail or restaurant business!

7 Tips for Celebrating Mom and Pop Business Owners Day, March 29th

One of the biggest advantages of owning  a local business – is being a local business! There’s a beauty and charm about mom and pop enterprises that consumers crave.  Plus, the shop local movement has gained such momentum, especially during the pandemic, people are now making a conscious decision to seek out local mom and pops.

So take advantage of your stature and prepare for a successful celebration of National Mom and Pop Business Owners Day. Here are seven tips for owning the day!

1. Start posting photos (and videos!) of yourself on social media. Identify yourself as the owner and give your posts a conversational tone. If it’s a family business, be sure to include everyone in the project. Let people know that you are not just trying to sell them something; let them know you’re vested in the community!

2. Redo the “About Us” page on your website by beefing up your back story.  Include family photos and your history within your community. People love to hear multi-generation stories and sentimental tales of how you got the original idea for your business from your grandmother.

3. Create a prominent sign for inside your store, “Proud to be a locally-owned business.” You can even add the organizations you support.  Then use that tag wherever you can: on receipts, in your newsletter, on your website – even on your price tags.

4. Identify a local community organization and create a partnership. It can be a school, a charity or other non-profit serving your community.  As part of the Mom and Pop Business Owners Day celebration,  hold a fundraiser (it can even be virtual on social media), host an event, or promote them through your newsletter or blog. Let customers know you are a contributing member of your community.

5. Pitch a story about your business to a local business or community blogger.

6. Hold a “Mom and Pop Business Owners Day” promotion, sale, event or giveaway. Invite your community partners, local influencers and guests to come celebrate ---you!  

Plan to make this a real celebration this year!

Until next time remember, 
You can do this!
Angel

Be Brilliant at the Basics

Formal education will make you a living. Self education will make you a fortune.
Jim Rohn

As the business world twirls at a shockingly fast pace, there is something that hasn’t changed and that’s the importance of business fundamentals. Your baseline benchmarks are still the foundation of your business: profit margins, conversion rates, product mix, merchandising.  But we do need to add a new metric and that’s digital presence. 

Yet, most of us aren’t running solid, well-rounded businesses – but won’t admit it. We lean into our strengths and try to avoid the things we dislike or don’t know and in doing this, you’re missing pieces of your success puzzle.

There’s absolutely no shame in not knowing everything but if you’re going to have a  successful business, you need to be able to properly track and analyze its performance.  If you just want to do what you like, you’ve got a hobby, not a business.

I talk people every single day who want to hire a social media company, for example, but never even taken the time to learn how social media works or what to expect in ROI. They hire someone and three months later say, “It didn’t work.”  What did you expect? Or they get P&L’s from the accountant each month and only review the bottom line results. Or spend the money on a robust POS but never bother to set it up correctly or pull and evaluate reports. You have unprecedented access to data that is invaluable in elevating your business!

To take a self-assessment of your business proficiencies and take the time to educate yourself. Whether it’s through YouTube videos, a mentor or reading books, education on the fundamentals will help you build a solid foundation for success.

Badly Trained Customers

Badly trained customers We all have them. Time bandits who suck the minutes or even hours out of our day. People who never purchase anything unless it’s at a deep discount. Those who continue to shop at your store yet complain every time they come in.

You know who I’m talking about. I know it’s frustrating, but quite frankly, you’ve allowed them to get away with this behavior. Now you have to retrain them.

Here are a few examples of badly trained customer situations I’ve worked with:

Breakfast restaurant – consistently promoted 99 cent breakfast coupons and over the years, nearly 80 percent of their very unprofitable breakfast business was dining for under a buck!

An Italian restaurant - allowed customers to use discount coupons on top of the early bird pricing rendering the profit from that business at virtually zero.

Cartridge refill company – in a desperate effort to keep customers, would deliver $10 ink cartridges anytime, anywhere, regardless of the size of the order.

Mother of the Bride dress store – would spend an unlimited amount of time with customers who couldn’t make up their minds and ultimately, didn’t buy.

What can you do with these badly trained customers? Fire them! I know that sounds crazy. You’re thinking, “Wait a minute, I can’t afford to lose business!” But think about it. You’re really not losing anything. In the case of the restaurants, the business was simply unprofitable. In both the instances above, we pulled the coupons and yes, some customers did get angry and stopped coming. But labor costs went down and most importantly, gross profitability went up. Over time, with some strategic promotion, we were able to rebuild the business with full price or reasonably discounted business.

I know it’s scary but I also know you didn’t go into business to work for free. In the case of the ink cartridge company, we didn’t eliminate the delivery service, we just managed it better. The owners created a delivery schedule three mornings per week. They were able to schedule staff properly and make the deliveries in an orderly

For the Mother of the Bride store, we had to retrain the sales staff who operated in fear they would upset or turn off a customer. We simply set a time limit of one hour for visitors who came without an appointment. If, at the end of the hour, the sales associate sensed the guest was indecisive or just needed attention, they were trained to say, “It seems you are going to need more time to make your decision. I’m going to suggest making an appointment at another time so I can give you my undivided attention. I am here on Tuesday and Thursday. Which is better for you?” Rather than leaving the customer feeling rejected, it enforced the credibility of the salesperson as an in-demand advisor who took their customer’s satisfaction seriously.

Remember, your job is to reward good customer behavior. Where are badly trained customers eating into your business? Don’t be afraid to make a plan to retrain or replace them.

Until next time, remember
You can do this!
Angel

How does your business make money?

One of the most common mistakes I see with small retailers is the failure to analyze sales revenue.  They may know top line sales and bottom line profits, but don’t take the time to understand the exact composition of sales.  Are you selling to new or existing customers?  Do you sell more of item A or Item Z or items A and Z together?  What is the average sale or sale per employee?

Ask the typical small store owner if they track Key Performance Indicators (KPI’s-see list below) and they answer, “It’s all in my head.”  With this tracking method, they’re probably missing out on some extremely important -and easy- ways to increase revenue.

KPI’s provide POWERFUL insight that can help determine targeted marketing solutions, pricing strategies, hiring needs, new revenue opportunities and a host of other strategies that can result in increased revenue and decreased expenses.

KPI’s are easy to track with point of sale software by simply inputting correct and detailed information for each customer and learning to pull the appropriate reports daily, weekly and monthly. I find many retailers don’t take the time to learn the capabilities of these systems. For those retailers that don’t have a POS system, I recommend tracking sales manually to get a grasp on the when/what of sales.  It takes some effort but can pay off big in the long run.

How can KPI’s help grow business? Here are just a few examples:

Average Sale/Sale by Category 
I worked with a coffee shop that needed to increase revenues by 10 percent which represented an increase in sales of about $2000 per month. She was going to invest $6000 in advertising to increase traffic to achieve her revenue goal. By knowing her average sale, which was $3.95, we were able to bundle two items as a special at $ 4.75. Just by upselling her regular customers, she was able to increase revenues without spending a dime or giving up any profitability.

Sales by Day of Week/Daypart
By knowing when you are selling (or not selling) you can create a strategy to improve business during peak and non-peak times.  For example, a pizza restaurant offered a daily lunch discount each weekday  Upon  analyzing his day/daypart numbers, we found that Thursday and Friday lunches were triple the volume of Monday through Wednesday. Since business was so good later inthe week, there was no need to continue offering a discount on those days. The owner was able to increase profits during the peak sales days and offer steeper discounts to lure customers during the off days.

New vs. existing clients
A beauty salon client did not track new vs. existing clients or client retention. Once they analyzed their numbers, it was clear they were getting plenty of new clients; they just weren’t retaining them. By understanding that, they were able to implement a two-fold strategy that included customer service training for the stylists to insure greater customer satisfaction- and ultimately their return -as well as a new customer welcome program that offered new clients discounts for pre-booking their next appointment.

Customer profile/demos
Take the simplest customer demo – the zip code. I recently worked with a franchisee for whom the franchisor did a quarterly mailing. In comparing the zip codes of the mailing to the actual client zip codes, we saw that the franchisor mailing list did not match the current client base. Armed with this information,  the client was able to inform the franchisor so they could create a more geographically accurate mailing list and thus, better results from the marketing dollars spent.

These are just a few examples of how understanding the nuances of revenue can help a small business owner create better – and sometimes very easy – strategies to grow business.

Key Performance Indicators
While not all are applicable to each business, here’s a list: 
                Sales per employee
                New clients per week vs. repeat clients
                Sales per square foot
                Average check
                Sales by category
                Merchandise vs. service
                Lead sources
                Sales by day of week/day part
                Sales conversion rates
                Customer profile

Which work for you? Start tracking them today. Learning how you make your money is the first step to making more!

Until next time remember,
You can do this!
Angel