While there are many ways to succeed in retailing, retail failures have only one cause: financial!
Whether you are a retailer looking for options, a start-up looking ahead, or are developing a business plan, you need answers. "How much profit?" "How much debt?" "How much inventory?" "How much cash?"
Financial modeling (comparing assorted projections) is an essential part of strategic planning, new business launches, and business turnarounds.
Yet to date, only the largest publicly-held retailers can afford the systems and people to accomplish this. Financial modeling templates that do exist for "small businesses" are not adequate for retailers, as they do not incorporate inventory management. (Inventory represents 65-80% of the typical retailers total assets.)
As a result, a high percentage of independent retailers run their stores as if driving at night with their headlights out! Accountants might help them to know financially where they have been. But the dynamics and rapid changes in retailing require ready access to looking ahead with "what if...?" financial planning.
That is why Outcalt & Johnson: Retail Strategists, LLC and The Retail Owners Institute® have developed these eLearning Kits: self-paced training courses and their companion cause-effect "calculators". These online tools enable any retailer, anywhere, to produce a fully integrated P&L, inventory buying plan, and resulting cash flow projection. All from the same few inputs. And all without needing a bookkeeper or other help.
When retailers are able to see the financial implications of their management choices, they can gain control over cash flow, make intelligent inventory purchases, manage their debt, and increase profitability.
Or, in other words, these retailers are able to "Turn on their financial headlights!"