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Patricia M. Johnson & Richard F. Outcalt
Retail Strategists and Retail Turnaround Experts
Co-Founders, The Retail Owners Institute® • Business Strata:G®
We recently saw a cartoon that made us laugh out loud — and then think of the Strata:G Calculators.
The cartoon shows a puppy at birth, then at 8 weeks, then at 20 weeks, and finally — in the “projected” panel — a long-legged, pointy-nosed, skinny-tailed creature labeled “Projected growth based on trend.”
Of course, that’s the problem with straight-line projections, isn’t it? Arithmetic will happily keep extending a trend forever. Reality? Not so much.
That’s where the Strata:G® Calculators stand apart.
Sure, anyone can make a spreadsheet do math. “Raise sales 5% a month.” Blink. Done. The numbers march neatly down the page, perfectly consistent — and perfectly meaningless.
What the Strata:G Calculators do is different. They’re built with room for your business savvy baked in.
Here at The ROI, we know that:
Not every line moves on trend.
Some expenses scale with sales, others don’t.
And most importantly, some numbers need the Owner’s judgment, not the accountant’s formulas.
In short, Strata-G Calculators know what matters — and what can safely be rounded off to the nearest thousand.
Our goal has never been to make accountants into forecasters or owners into bookkeepers. It’s to give decision-makers a clear, Big Picture view — the kind that sparks conversations, sharpens instincts, and leads to better decisions.
And now, AI is generating more possibilities and more "maybe we should..." ideas than ever. But which ones are truly worth pursuing?
With the Strata:G Calculators, you can hold every AI-generated idea accountable – instantly.
They’re fast, practical, and built for the realities of independent businesses. Perfect for busy owners in the AI Era. See more at The ROI’s What If…? Planning Center where your good judgment is very much respected.
Well, it’s that time of year when owners are receiving their financial statements for 2025. Whether it’s been prepared by your outside accountant or bookkeeper, or in-house with your accounting system, it contains some very useful information amidst a lot of detail.
Before you spend any time with it – and especially before you simply toss it into that bottom left hand drawer – check out this short article from The ROI about how to make your financial statement useful.
You’re already paying for it; now’s the time to unlock its value. 🔑
Let's say you're feeling better about your business. It's no longer losing money. Sales are inching upwards. You're ready to move past that "hunker down" mentality of recent years.
But, you discover that your vendors, or your bank, or your landlord do not share your enthusiasm! They say, "Glad your sales are better, but...." Or, "Our credit department is still reviewing it."
"What's with that?", you wonder. "How could they NOT want more business from me? I've been a darn good customer! Is there something they know that I don't know?"
Could be. And you won’t find the answer on your P&L.
Here's what your Balance Sheet is telling outsiders - in nanoseconds! - about your business:
Will you be able to pay your bills on time?
Is your business getting financially stronger, or weaker?
This lively Webinar of the Week, led by Pat Johnson and Dick Outcalt, Co-Founders of The Retail Owners Institute, will show how you can know that for yourself. In moments.
After all, your vendors and lenders already are doing this. Shouldn't you know what they know?!
2025 may have been very challenging for your business, but 2026 doesn’t have to be. Maybe we can help.
As an independent retailer, you carry a lot on your shoulders, but you don’t have to face it alone. The Co-Founders of The Retail Owners Institute offer personalized consulting services designed to help you navigate today’s retail challenges.
Start with a free, confidential Zoom session with our Co-Founders, Pat Johnson and Dick Outcalt. Known as “The Zen masters of retail finance,” Pat and Dick bring decades of experience and a practical, empowering approach.
Reserve Your Complimentary Session Now
It will be fun to meet you!
RetailOwner.com
Avoid mistakes • Seize opportunities • Look ahead now
There are many ways to succeed in retailing, many ways to assert your competitive edge, whether location, pricing, merchandise selection, knowledgeable staff, etc.
But there is only one way that retail businesses fail: they fail financially. So the key to success? Have a competitive edge, and take charge of the financial demands of the business.
As a retailer, navigating your financials can feel overwhelming. That’s why we’ve created a suite of online calculators designed specifically for independent retailers like you. No spreadsheets, no guesswork—just fast, clear insights for your next business decision.
Here’s how and when to use five of our powerful tools:
The question it answers: What would happen if I...?
Start here when you’re facing big-picture questions about your business:
“What will it take to break even?”
“Should I close a store? If so, which one?”
“Can I afford a remodel? What if I need a loan?”
In just minutes, this tool shows you your projected Profit & Loss, Open-to-Buy, and Cash Flow—all in one place. With just a few inputs, you can test different scenarios and see the financial outcomes instantly.
If you’re exploring strategic decisions, this is your go-to calculator to uncover the real impact on your bottom line.
The question it answers: What do our “vital signs” show?
Want to know how your store is really performing? The Key Ratios Calculator delivers fast, accurate metrics like:
Profit %
Gross Margin %
Inventory Turnover
G.M.R.O.I.
Current Ratio
Debt-to-Worth Ratio
Plus, it benchmarks your results against industry standards for your retail segment. Use this tool to evaluate financial health, identify strengths, and address weaknesses. Perfect for quarterly check-ins or when preparing to make big moves.
The question it answers: How resilient is my business?
When sales are up, down, or flat, resilience matters. This tool analyzes trends in your Balance Sheet ratios to reveal the staying power of your business.
Get a 1-to-5 score on key metrics to spot early warning signs or validate your strengths. Use it when planning for the future—or when you just need peace of mind that your business is on solid ground.
The question it answers: Will we make a profit this year?
If you want clarity about your P&L, this tool is a must. Enter what you already know—sales, gross margin %, and expenses by category (use our SPEEDY Expense Analyzer, aka “the Bucketizer”, if needed). In minutes, you’ll see:
A 12-month profit projection
Expense trends as a percent of sales
Immediate insights into trouble spots or opportunities
And if you don’t like what you see? Adjust inputs in real time to explore “what if...?” scenarios. Test different strategies until your plan “pencils out.”
Use it for annual planning, mid-year reviews, or any time you need confidence in your profit outlook.
The question it answers: How much inventory should I buy—and when?
This tool combines the art and science of buying to give you clear monthly buying plans, by department, in minutes. Enter basic info — beginning inventory, expected sales & margins, and planned turns—and you’ll get:
Maximum inventory to bring in each month
Ending inventory targets (the real key number)
Your projected G.M.R.O.I.
Perfect for planning upcoming seasons or refining your buying strategy. Need adjustments? Change sales, margins, or turns and instantly see the impact.
This tool helps you balance buying and selling like a pro while keeping an eye on cash flow and inventory turns.
Well, that depends on your situation!
Big decisions about your business? Start with the 3-in-1 Integrated Calculator.
Need to evaluate financial health? Use the Key Ratios Calculator or Financial Strength Rater.
Planning for profit? Head to the PROFITS Forecaster.
Fine-tuning inventory? Try the Multi-Department Buying Plan Calculator.
Each tool is built for speed, accuracy, and your retail reality. No accountants, no spreadsheets—just you, your numbers, and decisions you can trust.
Let’s get started!
Use the link below for the Strata:G Calculators. (That’s “strategy.” Every retailer needs one!)
"How are sales?" is always one of the key questions among retailers. And the preferred response? "We beat last year!"
Now, thanks to The ROI, you can have even more perspective.
We make it easy to compare your results to other retailers in your retail sector. Go here on The ROI site to see the quick reference trend charts.
At a glance, find out...
Are you outperforming the retailers in your sector?
Seeing the same trends for the trailing 6 months?
Or...??
*Reports from the government are still lagging; latest numbers – available January 14, 2026 – are for November 2025 sales.
The Retail Owners Institute® has been empowering owners since 1999 to "Turn on their financial headlights!" Our tools and resources are trusted by thousands of independent owners to help grow financially stronger and resilient businesses.