From the Co-Founders of The Retail Owners Institute.Tips | Tactics | Insights on the Business of Retailing.
Considering a multi-store launch?
Opening additional locations?
Testing a new retail concept?
Launching a robust e-commerce site?
Any one of these approaches to growth requires that you develop your plans, explore real estate or web hosting opportunities, evaluate systems, identify mid-management talent, line up financing, and so on.
But wait! Before you get too far down the road on any of these areas, you first must decide: What is your fundamental growth strategy? That is, HOW do you want to grow?
Why must you know that?
First, because your growth strategy and your tactics must align!
Second (and maybe most important): you must consider how much change each growth mode requires of your organization.
Take a look at this chart. See how there are only two major drivers of growth? (The merchandise you sell; the customers to whom you sell it.)
When combined, they produce the Four (Only!) Ways Retailers Grow.
Moreover, each of these Four Ways involves more or less fundamental change (from zero fundamental changes to two major changes).
Why does that matter? Because change = "stress". Even "good change" involves added stress. All of your resources - financial capital, and especially human capital – will be impacted.
See more of this thoughtful analysis and the implications of each mode of growth here: The Four (Only!) Ways That Retail Businesses Grow. It's a quick read, and potentially very empowering! Take advantage of this insightful and practical perspective on one of an Owner's fundamental responsibilities. Available exclusively at The ROI.
Sales ticking up? Here's why – and how to pick up the pace even more
Have you noticed? We may be making progress in this economic turnaround. Many retailers now are being buoyed by upticks in sales.
Aside from being relieved, have you given any thought to "Why?" your business is experiencing sales increases?
We can tell you in advance: it will be driven by one of these three basic reasons:
The National Retail Federation sponsored a survey in early May of retail small business owners across the country (those that meet the SBA definitions for employee size and revenue.) Contrary to the doom-and-gloom of the "Retail Armageddon" stories, this survey confirmed that retail owners are optimistic and looking to expand.
Few believe their business will be in worse shape in 12 months;
Nearly half expect revenues to increase;
Many have goals for expansion or implementation of new technologies.
The retail launch last week of California's newly-legal sale of recreational marijuana was newsworthy. Huge public acceptance as you no doubt noticed.
Then, to magnify the drama of it, the U.S. Attorney General restored enforcement of federal legal restrictions on the sale and distribution of marijuana even in states where it is legal.
You've seen all those comments, right? All the dire news about the demise of retailing?
It was 20 years ago this week that Amazon went public. Twenty years. And now they are valued at twice the value of Walmart.
As an independent retailer, this is certainly not news to you. The domination of retail first by Walmart and then Amazon is all-too-well known.
Look, we are not fond of what Amazon has done to independent retailers. But, we were struck by a comment by Jeff Bezos in a 2013 interview with Charlie Rose which we had missed earlier.
The ROI NEWS asked retailers this question about the effectiveness of Social Media: “Does it raise sales?!”
We invited retailers to take a short, quick, 6-question survey about their use of promotional tools in general, and, in particular, “Social Media”: Facebook, Twitter, Pinterest, Instagram, LinkedIn, Other.
We asked, and you answered!
You quickly confirmed that “social media” is in fact a hot topic among retailers!
And, you are willing to share your experience with it with others, and for that we say, Thank You!!
Running retail businesses these days is a lot like teaching a teenager how to drive. "Look son; keep your darn eyes on the road!"
Predictions by the "experts" tell us that the economies of the world are remarkably strong right now. And given that, retail sales this year are expected to be up between 4% and 5%. Maybe the best year in a generation!
It's a time when independent retailers could – and should! – "Go for the gold!"
All they have to do is keep their eyes on the road.
Pat Johnson and Dick Outcalt, The Co-Founders of The Retail Owners Institute®, have been called "The Zen masters of retail finance!" Since 1999, they have been assembling their proprietary content into a unique self-help website. The Retail Owners Institute is an unmatched resource that assists retailers worldwide with basic financial training, assistance and easy-to-use tools. Their engaging and empowering how-to resources about the financial levers in retailing are informative, fun(!), and retailer-friendly. Their promise: "Everyone will 'get it'!" Pat and Dick are recognized experts in strategic retailing. Working only as a team – Outcalt & Johnson: Retail Strategists, LLC – they have been consulting, publishing, and speaking professionally throughout North America since 1990. They focus exclusively on retail, or wherever retail is involved. They work with CEOs, CFOs, boards and owners of retail operations, as well as manufacturers or wholesalers expanding into retail. And they also are Retail Turnaround Experts.
Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"