If you’re looking to change your retail newsagency, whether it’s a traditional business or one that’s already undergone some transformation, understanding your current position is crucial. This starts with your data.
Knowing where your business stands is the foundation for future steps. This involves examining your business from different perspectives.
- An up-to-date profit and loss statement
- Current debtors and creditors reports
- A list of all money owed to the business, both formal and informal
- A stock listing with total value
- A dead stock listing (items unsold for six months or more) with total value
- A floor plan showing gross profit percentage by product department or category and floor space allocation
- Total rostered hours per week, including owners, and revenue per hour
- A revenue comparison by category for the past six months compared to the previous year
It’s not enough to simply desire change; you need to understand your business’s current state and capacity for change. The information above will highlight immediate opportunities and your ability to invest in changes. This is the starting point for any business I work with on transformation.
Reviewing this data, I recommend focusing on quick wins to build momentum. For example, if you have $10,000 or more in dead stock that’s already paid for, clear it out. Releasing this cash and space will benefit your business. Create a clearance area and apply a consistent discount, such as 50%.
While addressing dead stock, analyse the rest of your data to understand current performance and identify potential opportunities within existing categories. This can guide your initial steps.
As you explore the data, create a list of ideas and action items. You might discover previously overlooked opportunities.
Some retailers seek advice from accountants or business consultants. While this can be helpful, it’s essential they have current, hands-on retail experience in your specific industry.
Remember, it’s your business. You’re the one driving change and transformation. Take ownership of the process.
Start by gathering data, streamlining your business, and building a strong foundation. This will position you for more significant changes in the future.
