Fall - InsideOutdoor Magazine

Back Office
Minding Your Own Business
by Bill Taylor
How many times have you heard someone say “mind your
own business”? If you are the owner of a retail business,
that may just be a reason to say, “Thank you – Come again!”
We have seen many retail business owners get so wrapped
up “in the business,” stocking shelves, contacting vendors,
scheduling employees, etc., that they never seem to spend
any time working “on the business,” often leading to missed
opportunities or disastrous results.
While it is easy to get caught up in the daily ins and outs
of the retail business, especially in smaller stores, finding a
good balance is key. That is not to say you shouldn’t focus your
energies toward finding and selling customers, implementing
inventory and financial systems and providing excellent
customer service and product support, but a single-minded
approach toward always working “in the business” may be
holding your business back and keeping your profits down. We
believe successful retailers, especially those who also happen
to own the business, must make the time each and every
month to work “on the business.”
What do we actually mean when we say work “on the
business?” This includes changing your perspective by taking a
bird’s eye view and really looking objectively at all key areas of your
business – from how you sell to customers, market your products,
manage people and layout your aisles to a complete financial
review. It includes looking beyond today to allow you to plan for
growth, analyze trends, evaluate new products and product lines,
develop deeper vendor relationships and so much more that could
easily get missed while you’re redecorating your windows for the
holiday season or handling a customer complaint.
Getting Started
A great way to get started working “on the business” is
by developing a basic business plan. Your initial business plan
does not need to be deeply thought through or encyclopedic
in nature. In fact, if you’re just starting out, or if this is your
first time putting together a business plan, less is more when it
comes to developing the plan. A few pages, with a maximum of
five, should probably do it. Your business plan needs to include
what products you plan to sell and who your key suppliers will
be; markets you intend to reach; primary target customers; how
you will reach your customers; methods to recruit, hire and train
employees; customer support programs and procedures; and
most importantly your financial plan, including a projected profit
and loss (P&L). Creating key performance indicators (KPIs) is
another excellent way to establish metrics for your business.
The next requirement is to make time available every
month. We recommend that you spend at least a minimum of
eight hours every month working on your business. Another
good idea is to pre-schedule your calendar to block out this time
each and every month for this work. Employees and suppliers
requesting time to meet with you should be told that you have
a prior commitment and you’ll gladly meet with them at another
time. If finding a full day to dedicate to your business is difficult,
try scheduling two half days or maybe two hours a week, if that
works better for you. The importance lies in making the time
investment each and every month, not whether it is done in a
few short time periods or one long one.
Weekly meetings or conference calls with staff also are a
good way to work on the business. This can be a challenge in a
retail environment where employee schedules are often diverse
and flexible, so you need to be aware of when you can gather
a majority of your people for these sessions, either in person
or by phone, whichever works best. A good idea is to schedule
meeting times in advance, preferably the same day and time
each week, if possible, when you know you’ll have uninterrupted
time with your key employees to discuss the business. Develop
an agenda to be sure you cover the important items and metrics
in every meeting. Timeliness is important, so be ready at the
appointed time and don’t allow others to miss your meeting or
be late. During your sessions review your business objectives
and measure progress against the targets. Ask questions and
challenge the answers you receive.
Mind Your Numbers
Discussing the financial elements is critical. Not every
business person is financially savvy, but every smart business
person needs to learn and understand the basic financials of
successfully running their business. If necessary, ask for outside
help in this critical area. If you don’t have a financial person on
staff, look to a trusted business advisor, or your accountant/CPA
to explain the numbers and the information they provide. Have
them work with you to spot trends and patterns for your store
and for the product lines in your store and ask questions about
profits, margins and expenses. Learn how to read your P&L data
and be able to tell what is going on in your business every month.
It is also important to create an annual expense budget for your
business at the beginning of the year and then stick to it!
Don’t let the issues or problems of the day suck you in and
become your single focus. While you must be involved in building
and running the business, it shouldn’t be the only thing you do.
Minding your own business is not only a great idea, it is essential,
and you should thank everyone that reminds you to do so. After
all, if you don’t mind your own business – who else will?
Bill Taylor is the founder and president of Corporate Ladders,
(www.corporateladders.com) specializing in management,
sales and business development consulting and coaching
for businesses and individuals that want to get to the top.
Bill can be reached at wbtaylor@corporateladders.com or at
201.825.8296.
48 | InsideOutdoor | Fall 2008