Small business retail advice: you are your most important and most valuable competitor

In our work with a range of retail businesses across multiple channels, too often we see retailers get fixated on a competitor, often a big business competitor, not realising that they are their own most important competitor.

In our experience, the most important competitor a business has is themselves.

Comparing how you are currently trading against the same time a year ago is the best measure of the impact you are having on your business.

Comparing revenue, transaction count, average sale value, average items per sale – these are all good overall business measurements to compare.

Comparing unit sales by department and by category within department are good measures.

Comparing unit sales and revenue by suppliers within each department are also good measures.

The Monthly Sales Comparison Report in the smart Tower Systems small business POS software offers all of these comparisons in the one report. This is the best everyday business analysis report we think. Indeed, it is the primary report we go to for the retail businesses we own ourselves.

However, let’s first up dispel some myths:

  1. The report does not have to be monthly. It c an be for any period.
  2. The report can focus on revenue, GP or unit sales.
  3. The report can focus on product categories or supported or both.
  4. The report can cover any periods you want.
  5. This report is rated the most valuable by almost everyone who uses it and speaks with us.
  6. We rely on this repot in the retail businesses we have owned for decades.

We urge you to use this report to compete with yourself. Look at the last three months of this year compared to the same period last year. See how you are tacking. Look at the parts of the business where you have concentrated most and see if you are having a positive impact.

We urge you to not be fixated on competitors outside your shop. Rather, look inside, see how you are doing now compared to a year ago or how you are doing this quarter compared to last. The Monthly Sales Comparison Report measures data points anyone in the business can understand. It shows you where work is needed and it shows you where there is good news on which to build.

We can help you with this report.

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1 Comment

One Response to Small business retail advice: you are your most important and most valuable competitor

  1. Alan

    As a small business retailer myself, I agree. I try and compete with myself all the time as it sees be focussed on getting better at what I do and better in terms of what the business achieves.

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