Friday, July 03, 2009
What's New in The ROI's BLOG?
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EXCLUSIVELY for RETAILERS
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Online Open-to-Buy (OTB) Calculator
Merchandise buying plans by class, by department, by month, by YOU!

Separate registration required. 
45 days FREE trial.
Then, just $19.95/month.

Find out more here



Next Steps
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Welcome
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See benchmarks - and five year trend charts! - for the six key ratios every retailer must monitor. See how your store compares.

14 KEY SECTIONS
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Retail Business Insights
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It Shouldn't Even Cost Extra
Insist that your accountant or bookkeeper add a small step when preparing your Balance Sheet. On the same page, have them post - for this year and last - your Current Ratio, Debt-to-Worth Ratio, ROA, Gross Margin %, and annual Turnover.
Now, you'll be able to really use your Balance Sheet as a management tool.



Overview
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Become a Sponsor
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Become a Member
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Feeling uneasy about getting through the next few months?  Wondering whether you should be revising your store's spending plan?  The Retail Owners Institute® has just the tool you need: our online P&L Planner.

Available 24/7 in the Members-Only Collection, you can use the P&L Planner - on your own - anytime you want.  You do NOT have to ask your bookkeeper to do new projections for you.  (And, you will minimize the rumors!)

What a great way to test out some "what if...?" concepts.  See for yourself whether they "pencil out"; then you can decide which changes to vigorously pursue.


The ROI's P&L Planner has some unique features especially for retail owners:

  • It's set up for a six-month time frame that's practical and manageable.  (Want a full year's projection?  No problem.  Do months one through six, print it out, then do months seven through twelve and print that out.)
  • It clusters the operating expenses into major categories, or "buckets" vs. a lengthy list of alphabetical line items.  Plus, it separates the "fixed expenses" from the "variable expenses."  Much easier to manage and control expenses!
  • Each item on the P&L is immediately calculated as a percent of sales.  This too makes it easier for you to manage and control.

It is fast and easy to work with.  All the formulas are built in. Truly retailer friendly!

Take advantage now of your unlimited access to this great tool exclusively for ROI Members.  Just go to The ROI and login with your User Name and Password.  Then, scroll down the Member's Homepage to the direct links to The ROI's online calculators.  Choose the P&L Planner, and
"Turn on Your Financial Headlights!!"



NEW from The ROI!
Webinars by the Co-Founders.

Fast-paced, lively, informative...and fun!
Online, on-demand, 24/7.

Watch them all!


"What Retailers MUST Do To SURVIVE
This Financial Crisis
"

 

"The Indispensable Owners Dashboard"

 

"The Basics of Open-to-Buy Planning"

 

"Raise Turns...and Raise Cash!"

GMROI & Turns Calculator

 

Key Ratios Calculator

 Open-to-Buy (OTB) Calculator


 

Three major sections:
P&L and Balance Sheets; Inventory Buying Plans; Cash Flow

 

"Learn" in short, self-paced chapters

 

"Practice"  (e.g., take a quiz!)

 

"Apply" to your own business

 

Case Study: The I. M. Surviving (?!) Co.

Plus much more!

Start Now! 
Follow these 5 steps.  Drive your inventory to a targeted, well-conceived ENDING INVENTORY level at the end of each month.

  1. Determine precisely what annual inventory turnover rate your store(s) should have to be profitable and provide an adequate cash flow. (For free guidance, find your segment under the "Retail Benchmarks" tab.)

  2. Next, convert that turnover rate into "days of supply"; i.e., 4.3 turns divided into 365 days in a year equals 85 selling days (of supply) or "one turn's worth of inventory".

  3. Now, simply guesstimate your reasonably expected sales volume for the 85-day period from April 1st forward, in this example, through June 24. Got it?

  4. That sales number now becomes your targeted inventory level (at retail, not cost)  for the end of June. Now you've got a goal, a definitive number to shoot for which is based on going forward safely.

  5. But it's only as good as your ability to hit that target. Therefore, with just a limited number of selling days left before the end of June, you can, and must, reduce prices, cut orders, give spiffs to your staff...whatever it takes to drive down your inventory to hit that ending inventory goal. Now that you know what to do, we know you can do it.

And remember: Survival, without profit, through this recession is like halitosis; it's better than no breath at all!


 
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