How Small Business Owners Can Advance Their Business

We sat down with our expert Implementation Specialist, Donna Knight, who has been with One Step Retail Solutions for just under 16 years. She has ample experience providing computer software and hardware support for over eighteen years with thirteen of those years focusing on retail based companies. She has assisted retailers with growing their business by answering any technical questions while offering training and support. We asked Donna a few key questions about the challenges small businesses face and how these businesses can successfully advance their retail stores!

What are some of the main challenges facing small business owners as they grow?

As businesses grow, owners find staffing to be one of their main problems. Having excessive or not enough sales staff can be problematic, but it’s a problem that can be fixed with the right retail technology tools. Having traffic counters and running reports that show sales by the hour, will allow retailers to see what areas need to be improved. These tactics allow owners to maximize staff so that they have more staff in the store on the days and at the times when there is high traffic and sales volume. I have shopped in plenty of stores where I was one of the few customers and I got swarmed by multiple sales people. This is a perfect example of overstaffing, which wastes unnecessary money and resources while providing a negative customer experience.

Another problem for owners, is having an outdated point of sale system that is constantly adding unnecessary features and only improving its existing capabilities. It’s very important to choose a point of sale system developed by a company that is always releasing updates to its software so retailers can stay current with the times. Updates that come from customer requests are an indicator a software company cares and is striving to be the top inventory management system.

What recommendations do you make for clients that want more of your products and software, but don’t have a great credit score to get the funding they may need to acquire it?

On the personal side, I recommend creditkarma.com (which is free) to business users, but my personal experience has been that since I started tracking my credit score with this site, my credit score increased so much that I’m constantly getting credit card offers that I have to turn down. Another service I recommend is using one of Experian’s low cost credit tracking and alert systems, which lets you know about changes on your credit report. I’ve used both of these services and together they helped my credit score increase to the 700s. While the lending requirements of traditional banks focus solely on the credit score, there are options available for new businesses that are showing profit and building their score, but have some difficulty qualifying for a standard bank loan. Small business loans from alternative lenders like Kabbage can be worth exploring if you fit into this category.

What is something that would help owners and their business thrive?

One thing retailers don’t always pay attention to is using their billable services wisely. When you’re paying for hourly services, it’s vital you or your staff show up for appointments. It is very common these days for many businesses to charge for no-shows or last minute cancellations, so whole staff should be aware of these policies to avoid unnecessary expenditures. Otherwise, retailers could get charged for the appointment time without receiving any benefits.

When retailers have an appointment for billable services with a consultant, they should have questions or points of discussion written down ahead of time, this will allow the owner to be organized and use the billable time most efficiently and effectively. Also, when receiving training on a new program or system, be sure to take notes! I can’t stress this enough. While some computer programs are more user-friendly than others, retailers should not assume they can memorize how to use the program by just watching someone else do it one time. Also, make sure to ask questions during the training session. Sometimes, people might think they have the functionality down when it comes to a new system, but it’s important to ask questions and take notes for future reference.

Following the training, practice what has been learned since that is the only way to make it stick. Learners don’t really own the knowledge gained from a trainer without practice until the task can be easily completed. Another great training tip is to take notes of any weak points while practicing and revisit with the trainer. Of course, learning how to use an inventory management system is not as complicated as learning algebra or college biology, but the same techniques that allowed learning in high school can be applied to learning software programs.  In order for software to pay for itself, retailers must optimize use of it by learning how to use all of the features that will benefit the business. Otherwise, point of sale system is just a very expensive cash register.

About One Step Retail Solutions
Founded in 1985, One Step Retail Solutions is the top retail technology, value-added reseller in the U.S. offering proven  top-of-the-line point of sale systems and ancillary products.  One Step Retail Solutions provides events, seminars, white papers, webinars and more to educate retailers on how to effectively use technology to streamline and advance their businesses.

 www.OneStepRetail.com

 

Retail Twitter Handles to Follow

General Retailing, Industry News and Tips
Retail Week @RetailWeek

Retail Wire @RetailWire
RIS @RISnewsInsights
Hanover Research @hanover4bix
Retail Minded @RetailMinded
Retail Online Magazine @RetailOnlineMag
One Step Retail Solutions @OneStepRetail
Future of Retail Alliance @joinFORA
NY Times Retail Reporter @stephcliff

Retail Technology / Technology
Point of Sale News @PointOfSaleNews
One Step Retail Solutions @OneStepRetail
Tech Crunch @TechCrunch
Retail Digital @RetailDigital
NCR Counterpoint: @NCRCorporation
Retail Pro: @RetailProNews

Hiring / Personnel
The Retail Life @theRetailLife
Find Hire @FindHire
Work in Retail @WorkinRetail
NRF Retail Careers @Retail_Careers

Consultants / Training
Evan Carmichael @EvanCarmichael
Retail Smart Guys @danjab
Retail Touch Points @RTouchPoints
Retail Concepts @RetailConcepts
The Retail Doctor @theRetailDoctor
Retail Mavens @RetailMavens

Associations
NRF News - National Retail Federation @NRFnews
RSPA @RSPA
Board Retail Association @BoardRetailers
Florida Retail Association @FloridaRetail
Michigan Retail Association @MichRetail
California Fashion Association: @calfashion
Canadian Apparel Federation: @caf_apparel
Museum Store Association: @MSAconnect
Jewelers of America: @Jewelers_JA
Association of Zoos and Aquariums: @zoos_aquariums
American Nursery & Landscape Association: @american_hort
American Apparel and Footwear Association: @apparelfootwear
Brewer’s Association: @BrewersAssoc
Footwear Distributors and Retailers of America: @FDRA
Game Manufacturers Association: @GamaOnline
International Council for Shopping Centers: @ICSC
National Association of Sporting Goods Wholesalers: @NASGW_Pros
National Sporting Goods Association: @NSGASportingGds
North American Home Furnishings: @theNAHFA
Sports and Fitness Industry Association: @theSFIA

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Retail Design Blog: @RetailDesignBG

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Retail Real Estate
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Style and Fashion
Racked National @Racked
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Women's Wear Daily @WomensWearDaily
Refinery29 @refinery29
Red Carpet Fashion: @Fashion_Critic_

Retail Talent Acquisition Quick Tip - Part 6

In honor of our rapidly approaching webinar series
Employee Retention and Engagement 
with Tina Praino, we are offering our readers a series of quick tips related to retail talent acquisition. 

Quick Tip - Part 6

"The foundation of every smart recruiting process is the axiom that 'our organization may be a great place to work, but it's not for everybody. In fact, it's not even for most people.' Contrary to popular belief, there really is an ample supply of talented, hardworking, honest people available--some of whom already work for you." - Bill Catlette and Richard Hadden for Fast Company

Stay tuned for more useful tips and don't forget to register for our rapidly approaching webinar series! 

Employee Retention and Engagement Webinar Series - for Retailers
How to Find the Good Ones and How to Get Them SELLING

Sponsored by: Smart Retailer

Boost My Hiring Process: How to Find the Good Ones - COMPLETE

April 30th (Tuesday) at 11am-12pmPDT
- The importance of a proper job description, how to create them and how to utilize them
- Experiential interviewing, how to zero in on the right skill set, the right attitude and the best fit with simple strategic questions
Each attendee will receive a special gift from the speaker

Engaging My Employee’s: I Hired Them, Now What? - COMPLETE

May 7th(Tuesday) at 11am-12pm PDT
- Find out the difference between orientation and onboarding
- Find out what the key ingredients of a sound onboarding program requires
- Find out what a learning plan is and which members of your team MUST have one
- Learn formal and informal feedback strategies
- Learn about mentor programs
- Find out how to defining career paths
Each attendee will receive a special gift from the speaker

Engaging My Employee’s: A Deeper Dive, Let’s Get Them Cracking REGISTER

May 14th (Tuesday) at 11am-12pm PDT
- Learn to create structured mentorship programs
- Learn to cultivate learning plans to increase productivity and morale
- Find out about gamification in the workplace
Each attendee will receive a special gift from the speaker

Vital Retailer Resources, A Breakdown

Do you call ‘em the way you see ‘em?

By Evan Wise, Management One  


There are three umpires sitting in a bar discussing a game they just watched. The first one says, “I call ‘em the way I see ‘em!” The second one disagrees and says, “They aren’t anything till I call ‘em!”  “Still wrong,” says the third one, “I call ‘em the way they are!” That illustrates three philosophies of calling balls and strikes and those three philosophies characterize how small business owners and retailers manage their business.

I call ‘em the way I see ‘em

This is the retailer who goes to market with a clean slate. They shop and buy what they like. If they really like an item, they buy more. They make decisions on the spot with little prior planning other than looking at what was sold last year. This is a great way for an owner to stay in control of the situation because no one else has an idea of how the owner “sees ‘em” so no one else can replace the owner in buying picking merchandise. This is truly the way for a small retailer to remain small.

They ain’t nothing until I call ‘em

This is the owner who will not allow anything to happen without his approval. Delegation is something he talks about but naturally his staff is not worth or capable of delegated responsibility.  Every decision must be approved by the owner. It is not a decision until the owner makes it. In the game, the players must adapt to the situation the umpire creates, regardless of how good or bad the call may be or how frustrating it is for players and fans. In a business, the employees are forced to do the same thing regardless of how frustrating it is for employees or customers. There is no instant replay in business nor can a customer throw a flag on the field and have the decision reviewed by a higher authority!

I call ‘em the way they are

These are the managers who are able to study the situation and draw conclusions from accurate data. They look at history and use it to identify the trends and the opportunities that exist for the customers. These owners understand the customers, the vendors and the markets from both a quantitative and qualitative viewpoint. These are retailers who invest in information to help everyone in the organization to make the right decisions based on reality. These are the owners who invest in training for their staff so that they can delegate and have the right decisions made by others. These are the owners who define what the goals are and then empower people to make them happen.

As a retailer, you must manage two key assets and get the most return on your investment in each:

·         INVENTORY

·         PEOPLE

ASSET ONE: INVENTORY

Too often we find retailers who say, “They aren’t anything until I call ‘em.” The way they judge success in the business is based on sales. If they reach their sales targets, they declare that they are successful regardless of any reality. Other retailers who “call ‘em the way they see ‘em” are likely to focus on  profits. Inventory is an asset according to your accountant. This retailer may be profitable based on the level of inventory in the store but he cannot pay his bills because his cash is all tied up. The manager who “calls ‘em the way they are” recognizes that inventory is only an asset if you sell it profitably. It is a liability when it sits on the shelf. On the shelf, it ties up money that could be invested in fresh goods. It takes up space that could be used to show the items customers want. When you “call ‘em the way they are,” you focus on cash and the key measurables, not just profits.

 
A retailer has two options to clear out goods that are a liability to his store:

·         MARKDOWN STRATEGY
·         MERCHANDISE PLANNING

Too often retailers are forced to take heavy markdowns to reduce inventory levels, raise cash to pay bills and generate traffic in the store. A markdown strategy can include offering incentives to employees to show the merchandise, increased marketing, re-merchandising to highlight the items and markdowns. All of these are expensive and serve to drain cash and profits from the business but these tactics are a fact of retail life. Many of the merchants who believe “they ain’t nothing until I call ‘em,” make these offhanded and ad hoc decisions about markdowns. They approve every markdown based on “gut feelings”.

The owner who “calls ‘em the way they are” takes an approach of gathering the data and uses MERCHANDISE PLANNING.

ASSET TWO: PEOPLE

People are what make your store unique. Your people, your service, your policies and procedures should be unique to your store. They are what should set you apart from the competition and be the basis for your reputation and your brand image. Your people are truly your most valuable asset. In which type of management approach would you enjoy working? The most fair, predictable and reasonable approach is “I call em they way they are.” This is directed by the manager who gets the facts before jumping to conclusions.

 
That being said, most retailers take a haphazard approach to managing their staff. If you want to put more cash in your pocket, you must do a better job from point of hire to point of sale... period!  That is where we work with retailers on our solution called Winning@Business™. There are three components to the process of getting the most out of your investment in people:

• STRATEGY
• MANAGEMENT
• TRAINING

A retailer who can get these right can truly dominate his marketplace, develop loyal customers, keep the best employees and have more fun and profit from the business. The reality is that most independent specialty retailers do not even have a written strategy. The few I have met who do have a strategy, have rarely shared that strategy with the rest of the organization.

The second step in the process involves the management process. A business that has a strategy must also have a process whereby the employees can be organized, motivated and involved in the achievement of that strategy. A method to enhance communication, collaboration and action that focuses on both the strategy and the customer is essential to achieve results. The Winning@Business™ solution involves the essentials of a management process including teamwork, problem solving, capturing opportunities, meeting technology, measurement and accountability. Moving the owner from “I call ‘em the way I see ‘em” or “they aren’t anything until I call ‘em” to “I call ‘em the way they are” is a critical part of success. A certified Management One® affiliate works hand in hand with the owner and the staff to not only set up the solution and teach the principles, but also to implement and nurture the process to be certain that the benefits are realized.

RESULTS

Inventory planning, strategic planning, management and training are key elements to success in any retail business. Management One® is focused and committed to the results we achieve for each and every client. It is critical to measure the return that a retailer receives on any investment and the investment in business coaching services is no exception.  Our clients generally see a return of three to ten times the investment in our solutions in the first year alone. We measure and report that information too!

 
The results are staggering. They include:


OWNER

• Increase in profit and cash
• Greater market share and sales
• Greater peace of mind that the store can run effectively in his/her absence
• Pride in a growing business that is a market leader
• Freedom to grow the business instead of work in the business

EMPLOYEE     

• The right merchandise is available to sell
• A feeling of belonging, commitment, and involvement in the operation
• Understanding expectations and empowerment lead to more significant action
• More input
• Often greater remuneration

CUSTOMER

• A shopping experience that is fun and productive
• A personal relationship in addition to a business relationship
• A place where everybody knows his/her name
• Convenience
• Service
• Loyalty

As a specialty retailer, you cannot afford to operate in an ad hoc, haphazard, shoot-from-the-hip or random manner any longer. When you do, you are providing your competition too many opportunities to take customers, employees and market share. You are robbing yourself of profits needed to grow the business. It is time you put the latest techniques to work to boost your business, find reality and start “calling ‘em the way they are!”

Complimentary Retail Metrics Webinar Series

RETAIL METRICS Webinars

Complimentary for All Retailers
September 25th - October 30th

We would like to invite you to our upcoming series of webinars covering retail metrics. All retailers are invited to these complementary webinars hosted by One Step Retail Solutions featuring award winning retail consultant, Dan Jablons of Retail Smart Guys.

About Dan Jablons: Dan Jablons worked in retail while attending the Ohio State University, where he graduated with a Bachelor of Science in Marketing and Production. He has worked with retailers such as Walmart, Target, JC Penney, American Apparel, Betsey Johnson, Donna Karan, Jimmy Choo, Charles David, Diesel, Oakley, Tumi, Hollywood Bowl, and many others. Dan was the VP Operations for One Step Retail Solutions for over 10 years and continues to maintain a close relationship with the company.

In addition to his vast retail background, Dan also has a background in improvisational theatre. He has performed with comedy troupes all across the USA, and recently appeared on Curb Your Enthusiasm. Dan combines his extensive knowledge of retail with his comedy skills to become one of the industry's most popular speakers.

About One Step Retail Solutions: One Step Retail Solutions is ranked as one of the top resellers and service providers for some of the most comprehensive and state of the art retail POS software solutions in the industry. Taking a consultative approach to retail technology and helping thousands of retailers nationwide achieve their dreams.

Sept 25, Tuesday 11:00am - 12:00pm - Retail Metrics: An Introduction to KPIs REGISTER
In a lively discussion introducing the Key Performance Indicators that every Retailer should use to manage their store, Dan Jablons will enlighten you on the basics of metrics for your store and how to use these statistics to sharpen your buying and improve your stores performance.

Oct 2, Tuesday 11:00am - 12:00pm - Retail Metrics: Days of Supply and Inventory Turn REGISTER
Whether you have a seasonal business or year-round sales, you need to know your days of supply and how to use these to match lead times, without losing sales. Also find out how to increase your Turn as much as possible without having to take markdowns, resulting in more profits.

Oct 9, Tuesday 11:00am - 12:00pm – Retail Metrics: Stock to Sales Ratio REGISTER
Stock to Sales Ratio is a key statistic for measuring whether or not you are overstocked. Further, learn how to use the stock to sales ratio to plan purchases and ensure that you have the precisely correct inventories each month to match your sales forecasts.

Oct 16, Tuesday 11:00am - 12:00pm – Retail Metrics: Sell Through Percentage REGISTER
Sell Through Percentage is especially important for seasonal merchandise, since the goal is to be out of stock of seasonal merchandise by the end of the season. But most inventory has a “season” and every retailer can benefit from understanding this metric.

Oct 23, Tuesday 11:00am - 12:00pm – Retail Metrics: Gross Margin Return on Investment REGISTER
Simply, for every dollar invested, how many dollars did you get back? Was it worth the investment to make that profit? Explore the mysteries of GMROI and discover how this can be the most important metric for a retailer. Find out how to figure the GMROI on your entire inventory or on just one single item.

Oct 30, Tuesday 11:00am - 12:00pm – Retail Metrics: KPIs, Putting It All Together REGISTER
All of this information comes down to one simple question: do I have the right inventory in the right place at the right time? If you don’t know, the KPI’s will tell you just that. But how do you use them all together? And can they predict the future as well as report the past?

To interact on Twitter follow #retailmetrics or log into our discussion board by going to our tWebEvents page.