Last week I posted here Jeff Bezos’ video on the four things he knows. Since he built Amazon from scratch, that would count for something, right?
Whilst I understand that he was trying to keep it simple, the absolutes that I ‘know’ run to more than four things, so I could not resist making my own little list.
And being FYE and all, naturally one thinks about your successes and failure of the past year too.
Success is not about doing the right thing; it is doing what is required.
Luck plays a bigger role in the final outcome than most people are prepared to admit. (If you deny luck, you will miss the opportunity it brings.)
Some form of personal gain drives all of human behaviour. (WIIFM)
Don’t bother with it if you can’t measure it. (In business, not love.)
Eventually everyone realises that money does not matter.
It does not matter what you are good at, it matters only what the customer wants.
Anticipated regret is more powerful than anticipated pleasure.
People always overestimate the benefits and underestimate the risks.
Being right counts for nothing.
With every person added to a group, it becomes marginally less productive and more dysfunctional.
There is plenty where that came from – but that will do. I am also very interested in what you ‘know’ – so hopefully you can add it in the comments below.
I selected these because I think that it can be applied to running a retail business. If you just assumed for the moment I am correct (plenty of time to disagree later), just think through each of these aphorisms and see how you might make decisions differently in your business.
Take care
Dennis
PS: If you are not using this yet, you really should
We don’t always learn best from books. We don’t always learn best by trial and error. But we do learn like ducks.
Exposing infants and toddlers to a certain sport or aspects of a sport imprints those images on their minds. A kid of two who watches a lot of tennis (TV or in real life because mum and dad are playing) are not only more likely to pick up a racquet, but also has the patterns of play imprinted on their minds.
These are the athletes who, ten years on, are the ones that always seem to have an extra second to do something with a ball or seem to be more mature in their competitive ability than their peers. They are hard-pressed to describe why it is so, but it simply is imprinting.
We learn by copying what others do. If you want to know stuff, find people who know the stuff that you want to know.
Success is in large part attributable who you choose as your ‘imprint’. Pick carefully and wisely.
This post is directed at people who read the retailsmart feed (as opposed to visiting the site.)
For some reason, we’ve had a growth spurt (albeit off a small base ) which surprised me and for which I am grateful.
Everytime someone unsubscribes, it pains me to see it because I never got the opportunity to share enough and get to know you enough.
I read about 50 blogs in my Google Reader, which means I never actually visit the site, and I know what it is like.
So I have several favours to ask you:
If you are a blogger, drop me a line so that I can reciprocate by trying your blog.
If you stop liking this blog and unsubscribe, let me know why.
If you have just tried it or are a long-time reader, please let me know why you find it worth it and what I should continue doing. (And if you have to, also what I should stop doing.)
Ad above all, visit some time and drop a comment… because we are not chasing ‘followers’ – we just want to chat and share and get to know people.
I hope this week you will trade some insights with me. This blog post outlines (most of) the key topics that I would typically address during a business performance audit. Feel free to take it and DIY.
But if you have any views about any ‘gaps’ or any ’superfluous’ bits of analysis, I would love to hear your views. And I have a special reward/incentive for ONE of you.
STRATEGIC REVIEW
Typically we take a strategic view and try and understand whether the basic business model and retail proposition is sound. If it isn’t, then of course none of the subsequent analysis will be meaningful.
Typical discussion and analysis around the following topics:
What business are you in?
The Market Offer
Competition Analysis
SWOT Analysis
Key Issues
Positioning
Perceptual Map
[COMMENT]** I find the SWOT analysis usually is the area that adds least value.
MARKETING REVIEW
We then focus our attention on the market to try and understand the opportunity – and how the retail business attacks it.
Market Profile
Primary target market
Secondary target market(s)
Profile the typical customer (behaviour/lifestyle)
Marketing & Promotions Plan
Attraction Strategies
Conversion Strategies
Retention Strategies
Communications Collateral Evaluation
Signage
Print Advertising
Electronic Media
[COMMENT] ** I find most often that the message (the offer) made in an advertisement is most often poorly constructed.
RETAIL OPERATIONS REVIEW
The final stage of the review is of course how the retail proposition is executed. The main focus is on the retail mix.
1 Merchandise Plan
Store Entrance and Exterior:
Layout:
Product Displays:
2 Pricing Plan
3 Sales Support Plan
4 Financial Plan
Stockturns
The Average Sale
Key Financial Ratios
Key expense ratios
Capture rate
Conversion rate
Key Productivity ratios
5 Facilities Plan
6 Information Plan
7 Quality & Service Plan [COMMENT] ** Although ‘PEOPLE’ is arguably the most important facet to be addressed, I find that (as an external consultant) this is very hard to get a real handle on until you have built up a good relations hip and deep knowledge about the business.
For the reader who makes the most insightful comment, I will send you a spreadsheet that we use as our ‘input’ sheet which you can then populate with your own data. I will then run it through our financial model (including benchmarks we may have) and send you the results – FOR FREE – to thank you for your input.
Do not place a period at the end of a headline. Periods indicate that there is no need to read on.
Begin headlines at top left. A reader’s eye naturally- falls to the upper left corner.
“Serif’ typefaces are regarded as the most legible font; most newspapers use them due to their high readability and readers are comfortable with them.
Avoid colour headlines because coloured headlines are distracting. Studies have also shown that the darker the colour, the greater the comprehension. Keep the text black if possible.
Black text on a tinted background also increases comprehension. It is easier on the readers’ eyes than the black and white contrast.
Avoid reverse print (e.g., white text on black background).
Keep the layout clean, and use consistent type styles.
Don’t let the design overshadow the message.
Have a logo professionally designed.
Make sure the ad contains clear information about where you are when you are open and how to reach you.
Make sure the ad reflects your product and image.
Establish a consistent look and maintain it. (Repetition builds recognition and trust.)
Here is the second instalment (*) of the list of efficiency improvements.
Your additions are welcome…
Reduce Memberships In Outside Societies, Clubs, Associations
Reduce Number of Magazine and Newspaper Subscriptions
Reduce Quantity of Reports
Reduce Size of Mailing Lists
Reduce Switchboard Hours
Remove Materials from Desk Nightly To Reduce Janitorial Work
Request Periodic Time Distribution Reports From Employees
Review All Communications and Facilities
Review All Education and Training Programs
Review All Form Designs for Efficiency
Review All Stationery Costs
Review Discount Procedures
Review Insurance Costs
Review Purchase Frequency R Supplies and Materials
Review Quality of Office Equipment
Speed Up Billings
Standardize Equipment
Start and Leave Work on Time
Strictly Regulate All Travel
Turn Out Lights When Not In Use
Use Cheaper Paper in Duplicate Machines
Use Economical Small Package Ship Methods
Use Fluorescent Lighting
Use Hand Written Instead Of Typewritten Memos
Use Lighter Paper and Envelops
Use Lower Priced Hotels
Use Lowest Class Mail Rate When Feasible
Use Proper Wattage and Voltage
Use the Airport Bus Instead Of Cabs
Utilize People to Full Capacity and Qualifications
Here is the list* of the first 30 of a total of 60 ideas – each of which can save you money (pennies or pounds). The next 30 in the next post, but in the meantime, would you like add any?
Buy Industrial or Trade Magazines at Wholesale Prices
Centralize Office Services
Check All Freight Rates/Bills
Control Moving Expenses of People Transferred
Cut Down On Lunch Time Meetings
Cut Out Executive Cars
Cut Out Professional Services Where Possible
Do Your Own Building Maintenance
Don’t Pay Tax Instalments until they’re due
Don’t Use Express Mail Unless Necessary
Eliminate Business and Trade Reports When Not Necessary
Eliminate Christmas Gifts to Employees
Eliminate Expensive Stockholder Meetings
Eliminate or Reduce Convention Attendance
Have Pay Deposited Into the Employee’s Bank Account (no cheques)
Evaluate All Major Cost Programs
Extend the Use of “Self Insurance”
Group like Parts Together in Warehouse
Have More Modest Offices
Have Salesman and Drivers Deposit Collections Directly Into Banks
Have Shorter Lunch Periods
Hire Temporaries for Emergencies; No Overtime
Is Company Sponsored Organizations Necessary?
Is The Company Magazine Necessary?
Keep Petty Cash Funds to a Minimum
Minimize the Number of Bank Accounts
Obtain Competitive Bids for Purchases of Materials and Supplies
Place Fastest Moving Items near Dock
Practice First In – First Out
Put A Price Tag On Each Report Issued
Most people would have experienced at least one retrenchment by the time they are 40. Right now there are many people experiencing this for the first time, so before we start on strategies to deal with it, let’s debunk some myths and face some harsh truths:
It hurts. No matter what a person says or who you are, it is an emotional knock-out punch from which you take time to recover. Everyone doubts their self-worth to some extent for a period of time after the blow.
It is harder than you think to get another job. The people who evaluate your application invariably wonder if you are damaged goods, and why the previous company did not value you. And they judge you accordingly.
People get painted into a corner to start their own business because it seems like the only option – and apparently gives you at least something to call yourself. This may not be the right decision if you are not the entrepreneurial kind. Circumstances are powerful motivator, but your future success or failure is going to be determined by your dedication and discipline; which will wane if it does not suit your personality. You risk failing again. Make your decisions very carefully…
What can you do?
KNOW that all organisations are dysfunctional – directly proportional to their size – and that they make really poor decisions. (If you need any proof, just think about how many great coached have been fired, only to achieve even greater things elsewhere? Does Wayne Bennett ring a bell?)
KNOW that you are still a human being with much to offer. Don’t let the job be the only source of dignity. The adversity may actually be in a good thing (in hindsight) but one should not say that before the event because it might earn you a slap even if it is true – ex post facto.
ACCEPT some responsibility for being in the situation and not anticipating & planning better. (Do it quickly, and then move on by taking charge.)
STICK your pride in your pocket and focus on the key issues.
KNOW that it won’t last forever, if you are lucky enough to have a job; do this before it happens:
Get yourself a kick-butt resume – and include an online one – maybe try VisualCV.
Make contact with the people you have blown off because you were too ‘busy’ with your job. If you hit the street, unemployed with a big mortgage, you want to know who your friends are.
And you will also learn that your future success or failure depends on PEOPLE – not on your job skills. I recommend you learn that before it happens.
Re-evaluate your life, because you need to pick a direction before you have to pick it. Time will be precious when it happens – and that is usually when you least expect it.
Learn new skills – in your own time. If you take what the company has to offer, manage your away time very carefully – that makes you vulnerable.
Footnote for employers.
Right now is a really good time to pick up some really good people. (I know a few and you can have them for no commission.)
Accept that good people will legitimately take jobs which they are over-qualified for – and if you treat them right, they won’t necessarily leave when the tide turns.
