Unlocking Retail

Why don’t businesses do it?

I have asked this question to many retail businesses and here are the top 3 answers I received.

1️⃣ We didn’t know we should be planning

2️⃣ We don’t know where to begin

3️⃣ We really don’t understand how it helps

These are all valid replies.

So I thought I would share a little insight and clarify……

⭐️ Why should we plan:
You will gain an enormous sense of control in your business and gives you the ability to steer your business, rather than just roll with it!
You will be more proactive rather than reactive, so you will identify problems early and work on solutions prior to them becoming a big issue.
Much better to know than pretend everything will be ok!

⭐️ Where to begin:
Firstly, one of the most important things to plan in a retail business is your inventory.
The easiest way is using a spreadsheet, however, if you are unfamiliar with this program it can be performed on paper, but not as efficiently.
My suggestion is to ask for help on this one. Once you have established the tools to use, you will need a starting point. What is your current stock position and what rate are you selling it at? Depending if you anticipate your sales to increase or decrease, will form your forecast. This will give you an indication on how long your stock will last and where your shortages will be.

⭐️ How will it help:
The best way I can describe how planning helps is the control, clarity and confidence it gives you in your business.
From my experience it absolutely takes the stress away. Planning also lets you know what is really going on with your inventory and helps you keep the optimum stock levels at all times. Inventory is the single biggest investment you make in your retail business and the better you have this under control the healthier your business will be in all areas including Sales, Profit and Cash Flow!

Hopefully that has put some clarity around the mystery of planning.
Mx