This blog introduces the nineth step, of the “10-steps to retail success“, Planning and Controlling. 10-steps to retail success is a process / methodology I’ve developed for my 1-2-1 mentoring clients. Over the past weeks / months I’ve been introducing each step with a little more detail, and this is the penultimate one… You’ll have to wait for the New Year for the last 🙂
Why Planning and Controlling?
This is all about staying informed, having your finger on the pulse and being armed with all the information you need to make effective and confidence decisions in your business.
Planning depends on access to key information; so there is a dependency on the IT (systems to capture data, reporting tools to provide information) being in place. IT is tackled in step 10, as IT is one of the back office functions.
What do you need to consider when it comes to planning and controlling?
There is a long list of things you need to include in your planning and controlling – as outlined below. When I work with my clients I’ve developed templates for all of these areas, which they have access to through www.retailchampion.co.uk/resources. You can of course develop your own.
- Business Plan / Income and expenditure plan
- Cash Flow Plan
- Range Plan
- WSSI (weekly sales, stock and intake plan)
- Promotional calendar and marketing plan
- Supplier delivery schedule
- Store opening checklist …. etc!
How to use your plans once you’ve created them
Creating plans is only of any value if you then actually use them! You need to monitor actual business performance compared to plan. If you do you will create an “early warning system” for your business. You will notice if performance begins to deviate from plan and the roll-forward nature of the plan will enable you to identify if that is likely to be a problem, and, when.
Using this you can take action to address potential problems before things spiral out of control. Remember, if your cash flow shows you that you’ll not be able to make the next quarter rent payment in full, but could pay 50% this month, 50% next, the landlord is going to be much more accommodating if you can warn them about the issue up-front and propose that you’ll offer split payment then if you simply fail to pay on the due date!
Introducing Step 10 of the 10-steps to retail success – Back Office (HR, Legal, Finance and IT)
In the next blog about the 10 steps to retail success (which will be after Christmas and in the New Year now) I’ll be introducing step 10, Back Office. If you can’t wait then don’t forget that I’m also offering the “Be a retail champion by next year” programme, which includes 52 FREE weekly retail tips by email.
To sign up for that visit www.retailchampion.co.uk/retail-tips