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About our POS software for local small business retailers

Category: Small business management advice (page 1 of 7)

Advice for small business retailers: helping employees understand where the money goes

It is easy for employees in a local retail business to think the owners are rich if all they have to go off is the money paid by customers to the business. In this article, we share an an approach on how a local retail business can better inform employees. Here is an information sheet we have seen work well in the back room of a shop as it explains each dollar.

WHERE THE MONEY GOES

Where every dollar we get from our customers goes.

Every dollar paid to us by our customers and put in the til or through the credit card terminals gores somewhere and quickly. Some of it goes right away, some of it in a few days and most of the rest by the end of the month.

Some of the money we are paid goes before we get it – like for stock we pay for before it arrives in the shop.

This graph shows where every cent of every dollar we earn goes.  The stock cost is the average cost of items we purchase. Some items cost us 90% of what we sell them for while others cost us 20% of what we sell them for. This is why we are using the overall business average for this illustration.

Based on our current numbers our profit is 4%. But we don’t get to keep that: we have borrowings to service, we don’t receive a salary for our time and any profit is taxed by the government.

We buy stock for the best price possible but with the price of many products we sell controlled we need to work elsewhere to improve things. This is why we look carefully at the roster. Even one hour saved can be like selling $100 in stock.

The best way to help the business achieve better results is for us to sell more of our stock to existing customers and for us to attract new customers.

We’d love your help in encouraging customers to buy more. You can do this with excellent displays, helping customers on the shop floor and giving customers awesome customer service.

We’d also love your ideas on attracting more shoppers.

Please don’t think we’re putting this notice up to cry poor. We share the information to give you a better understanding of what happens to each dollar we get from our customers because we believe that the more information anyone has the more informed their actions can be.

Small business retail advice: take a walk

We work with many different retailers in different situations. We are grateful for what we have learned from our diverse community. Reflecting on this recently, it is the advice we share today that we have found to work well in almost any business type. It is basic, free to action and universally useful from what our customers tell us.

Here is that advice. We offer it today as recommended advice for any local small business retailer, as a terrific assist in terms of mental and physical health for business owners, managers and the business itself …

Take a walk.

It is tough work running a small retail business, working 70, 80 and more hours a week covering many tasks from business manager to cleaner to customer service to creating retail displays.

There is always something to do. Some days, often in fact, it can feel like no matter what you do you have more to do at the end of the day than when you started.

Regardless of how busy you are in your retail business, we urge you to take time out every day for a brisk 20 to 30 minute walk outside, in the sun (or the rain), alone.

Leave your phone behind – the shop won’t burn down.

Walk alone.

The best time to take the walk is when you feel most overwhelmed.

Walking, as a brisk pace can break the cycle of feeling overwhelmed, the negative feeling about what is confronting you in the business.

Getting your heart rate up will be good for your physical and mental health.

A good energetic walk is an excellent opportunity to reset.

Being away from the business, other people and the phone will give your body and mind time to process – even if you are not actively thinking about the business.

If you are like me, stepping back into the business after a brisk 20 or 30 minute walk, you see things differently, decisions are easier, progress is real.

Days with a walk are far better than days without.

Footnote: this advice for business owners and managers to go for a walk when feeling overwhelmed is consistent with advice from mental health experts around the world. Better still, following the advice costs nothing.

Small business ideas – how local indie retailers and evolving using POS software

Tower Systems is a small business ideas incubator offering help and insights to local indie small business retailers.

Through our work across ten different retail channels in which our POS software and our Shopify e-commerce sites are used we have  cultivated experience and insights, which we willingly share with our community throughout our small business ideas platform.

We have helped local small business retailers to pivot into new categories, to evolve their businesses to leverage physical assets into new online businesses. We have helped local retail businesses to recalibrate their floorspace for efficiency and basket depth. We have helped local small business retailers engage with a plan b that grew into something special and valuable. We have helped small business retailers cut accounting overheads by eliminating manual work in accounting and bookkeeping. We have helped local small retail businesses to trim their roster with no negative impact on sales and a terrific benefit on business financial performance. We have helped local retail businesses to expand their product range based on data from their business and data from the world as to what their shoppers may buy.

These are all examples of small business ideas that we here at Tower Systems have engaged with, for our local retailer community. Yes, we are not an average POS software company.  As retailers ourselves we understand the value that can flow from ideas shared.

Our approach to small business ideas is to listen, watch and learn … and share what we know based on the evidence. This is a good and safe place for small business ideas as we have a broad range of business types in our community, from which we can pull data and experiences.

Our approach to small business ideas is to share them, to set them free so others can consider them and make their own assessment. It is something were have done for many years. We are grateful to be able to do this for this in our small business retailer community.

Tower Systems is a POS software company first and foremost. We develop, sell and support PO software for local small business retailers. We leverage what we learn through this to engage with small business retailers behold the software, through sharing ideas and insights that can help businesses in our community flourish.

Small business retail advice: finding your own margin story

Here at Tower Systems, we help small business retailers get more from our specialty retail POS software. One way we do this is through sharing business insights and opportunities, like this about product margin setting.

What you charge for what you sell, what margin you set needs to be carefully considered.  Price is all about customer perception of value.  Value is based in a range of criteria including:

  • Convenience.
  • Added value – from purchasing from this business.
  • Perceived value – how you package a product compared to how others package the same product can lead to a different price.

See, margin is about more than margin from each item, it is equally about margin dollars, gross profits from each sale, eased basket.

To create the best margin narrative for your business, we suggest you …

  1. Manage labour to focus on products with the best return to the business. This is a balance between overall gross profit dollars and margin percentage.
  2. Look at items with a customer service component, where your expertise is required to make the sale or make good use of the products or where there is a reasonable after sales service component. These can usually carry a higher margin.
  3. Look at the items which are unique to your business in your location or nearby. If you are the only store serving the local community then you do have a pricing opportunity. These items can usually carry a higher margin.
  4. Assess why people shop at your shop. If they are shopping because of convenience then you have the capacity to charge more for this. This is why convenience stores charge more for items which you can buy elsewhere for considerably less.
  5. Involve others in setting sale price. Ask your team what you can charge for an item. Assess what they think you can “get away with”.  By polling team members, you may find that your perception on price is lower than what others expect.

You can build a stronger business by taking small steps each day which focus on new traffic, better margin and improved sales efficiency. No grand plan, no expert strategy – just small steps which leverage opportunities which exist in your retail business.

By paying closer attention to the margin you can achieve, you strengthen the financial foundation of the business and ensure that your return on inventory investment is more helpful to the bigger business plan.

What you do in your business is 100% up to you. Our advice here is for your information, your consideration. By sharing it here our goal is too give you more information to consider, so you can determine the path most appropriate to your own needs.

Cash register versus POS software, what’s best for small business retail

We are a POS software company so, naturally, our advice will be choose POS software over a cash register … here’s why:

A cash register offers little security against employee theft. This alone should knock out using a cash register in any situation. With employee theft accounting for around 75% of all theft in retail businesses, the more you can do to track, understand and mitigate against it the better.  POS software offers excellent security / control over employee theft. The key is to use POS software well, properly.

Using a cash register denies the business an opportunity to truly understand what is happening in the business whereas POS software provides that data and averages those insights.

It is as simple as this:

  • Cash register: you sold something for this amount of money.
  • POS software: you sold these items for this much. It can even show the customer details, what was sold with it, how they paid and more.

Sure a cash register can feel like lower cost and easier to run. However, with employee theft, data loss and insight denial a cash register is a far more expensive solution for a retail business than POS software.

Good POS software for a specialty retail business can cost $3.00 to $5.00 a day. This is a small cost when you consider the data and insights value to a business compared to the ignorant cash register alternative.

Compared to a cash register, good POS software will help a retail business:

  1. Cut labour costs.
  2. Reduce customer theft.
  3. Reduce employee theft.
  4. Reduce the overhead of dead stock.
  5. Increase sales.
  6. Better manage supplier relationships.
  7. Better manage employee resources.
  8. More successfully lay out the shop.
  9. More easily and quickly sell online.
  10. be more appealing to a prospective purchaser.

Sure, a cash register can seem like the easy to use and easy to understand way to take payment at the sales counter. The reality is different. If you want to maximise the opportunity of your retail business, POS software is a better and far more complete solution for the business. It nurtures the data and insights that enable you to be a business person rather than a button pusher.

The future of retail management in POS software driven. cash registers are old school, from the past, not useful to retail today.

These are some fo the reasons we recommend POS software far ahead of a cash register for small business retail.

POS software for baby gift and good retailers

We are grateful that baby shops and retailers specialising in baby related gifts and goods are finding our POS software to be ideal for their needs. here is a short video where we share some of what they tell us they love:

Small business retail advice: finding optimism

Every day can be tough in small business. You can feel like the big competitors are winning and that you can’t climb the mountain to compete. You may not know where to start.

For some, 2020 has been that year, the year of challenges and worry so much that seeing ahead to the horizon can be difficult.

There are green shoots of good news and opportunities in every small and independent retail business that we look at. The key is to find these and to leverage them for more success.

A green shoot is a product or a category of products or a supplier performing above average in the business. Often, these successes have gone unnoticed.

Finding optimism is like mining, you have to look for it, sometimes for a long time. It is there, though, in every retail business.

As soon as you hear yourself talking your business down, STOP. Look at your data, look for the good news. That is what you need to think and talk about.

By looking at your data, we mean looking at year on year, quarter on quarter or month on month comparison data for departments, categories, suppliers or even individual products. Look for growth and once you see growth, think about what you can do with and around the products achieving growth so that you can achieve other growth.

Any product achieving year on year increases in unit sales is a product to be appreciated, nurtured and used to help grow other products that can sell to the same customer.

This is how you grow optimism. Find those small green shoots, no matter how small, leverage them with some small steps and, over time, build more success for your business.

Here at Tower Systems, we go beyond our POS software in our help for small business retailers. We leverage our knowledge to deliver good outcomes for our customers based on their business performance data. We work with them, guiding them, helping them to see opportunities and encouraging them to lean in to green shoots of success.

We are grateful to our small business retail customers for their engagement with son this path to success by cultivating green shoots.

46 Christmas marketing tips for small business retailers

Yeah, it’s odd for a POS software company to offer Christmas marketing tips to retailers because … we are tech people and not retailers. That may be true for some.

Tower Systems has owned and run retail businesses since 1996.

We are not your usual POS software company. We actively share marketing tips with our customers. Here are some Christmas marketing tips for retailers that we hope some find useful, or at least inspiring to you to develop your own.

We offer you 46 low cost and no cost Christmas marketing tips for retailers  ideas to help create a different Christmas experience in your business.

  1. Always:
    1. Have tape with wrapping paper.
    2. Have wrapping paper with cards, at the counter and with magazines.
    3. Have Christmas bags at the counter.
    4. Have tape at the counter.
    5. Pitch easy to purchase ready to go hampers close to the counter.
    6. Keep displays fresh.
    7. Run your loyalty programs through Christmas – to bring them back.
  2. Make it easy. People often talk about how hard Christmas is. Be the local business that makes it easy. The ways to do this are with easy Lay-By, free wrapping, better shop floor help, guide buying advice or tips on perfect gifts no one else will think of. Consider making Christmas easy as being a key part of your messaging.
  3. Host a simple party. To preview Christmas, say thank you to shoppers and support a local cause. Do it when the shop is closed. Limit numbers. have some drinks and food. Have fun. Celebrate.
  4. Use video. To promote products on social media.
  5. Offer impulse purchase of often forgotten lines. At the counter, with newspapers, next to weekly magazines.
  6. Offer help. For kids and others who ,may find choosing a card or writing a card difficult.
  7. Visit nursing homes. With some gifts and cards for easy shopping.
  8. Be thrilled people are in your shop. Your personal smile or greeting is something they may not see in a big business where employees are less invested in each shopper and where the owner is usually thousands of kilometers away.
  9. Make the giving easy. If people purchase items from you to send somewhere else. Offer a one-stop shop. Save them the trip to the post office.
  10. Make the shop less about Christmas. Consider pulling back on the Christmas visual noise. Go for something simple, muted, respecting the season but making a calm statement. Consider declaring the shop a Christmas carol free zone – not because you hate carols but because you want to help customers take a break.
  11. Help people rest and recharge. Create a Christmas shopping rest and recovery zone. Offer free tea, coffee, water and something to eat. Encourage people to take a break in your shop – without any obligation for them to spend money with you.
  12. Let your customers help each other. Setup a whiteboard or sheets of butcher’s paper, yes keep it simple. Get customers to write gift suggestions under different age/gender groups. For example: Girls 18 – 25, Boys 55+. Encourage your customers to help each other through their suggestions.
  13. Make price comparison difficult. If you sell items people are likely to price compare with other businesses, package them so price comparison is not easy. Put items into a hamper as a perfect Boy 8 to 12 bundle for example. Or offer the item with pre packages services if appropriate for an item.
  14. Less is more.  The stack em high watch em fly mantra can be wrong. Indeed, it is often wrong in retail. Shoppers can be store blind because a shop is too full or a display is too busy. Consider creating simpler less cluttered displays and window promotions. Draw attention to what you want people to see by promoting that one thing. Every time someone asks if you have something that you think through should be able to find easily – take it as a challenge for you to address rather than a commentary on a facility of the customer.
  15. Change. Christmas season in your shop should evolve. Major change weekly is vital for people to see what you have that they could buy.
  16. Be socially engaged. On Facebook, Instagram, twitter and elsewhere, be the calm voice, the person people enjoy reading or seeing photos from. Provide entertainment this Christmas rather than the usual retailer shrill of come and shop here!
  17. Be community minded. Choose a local charity or community group to support through Christmas. Consider: a change collection tin at the counter; a themed Christmas window display; promotion on your social media pages; a donation to their work; a collection point for donations from customers.
  18. Facilitate sharing stories. Find space in your shop for customers to share their Christmas stories. It could be a story wall inside or in front of the shop. This initiative encourages storytelling by locals and better connects the business with the community.
  19. Award a prize at a local school. Fund a year-end prize at a local school. Attend a school assembly to award the prize. Work with the school leadership on a prize appropriate to your business.
  20. VIP preview. Host a VIP shopper preview night when you show off your Christmas ranges ahead of being available to the general shoppers. Respect and reward your local shoppers with deals and the opportunity to preview ahead of others.
  21. Leverage Christmas traffic. Encourage the Christmas shopper traffic surge in after Christmas. Give them a reason to come back. A coupon promotion or a discount voucher on receipts could be the enticement to get shoppers back in-store. Note: the Tower POS software produces discount vouchers to rules you establish.
  22. Become a gallery. Work with a school, kindergarten, community group or retirement village to bring in local art for people to come and see through Christmas. A small space commitment can drive traffic from family and friends of those with art on show.
  23. Dress the shop. Fully embrace Christmas. Create a Christmas experience such that shoppers know they have stepped into somewhere special this Christmas. Go for more than some tinsel and a tree. Fully embrace the opportunity.
  24. Make your shop smell like Christmas.
  25. Send cards. Send Christmas cards early in the season to suppliers, key customers and local community groups. This connects you with Christmas. Invite all team members to sign each card.
  26. Host a Christmas party. For shops nearby. You are all in the season together – let your hear down before things get crazy.
  27. Ensure you have gifts targeted at occasions. For example: Kris Kringle, by price point and by recipient. Make it easy for people to know what they could give.
  28. Stocking stuffers. At your counter always have one or two stocking stuffers for impulse purchase.
  29. Offer gift vouchers – for someone to give when they are not sure what to give.
  30. Be local. Ensure you have a selection of locally sourced products available for purchase. Make it clear in-store that these products are sourced locally.
  31. Tell stories. On your Facebook page, talk about what is important to you at Christmas. Personalise the season and deepen the connection with those who could shop with you.
  32. Offer a free gift. Bulk purchase an item to offer those who spend above a set amount. For example, spend $65 and receive XX where XX may have cost $5.00 but could have a perceived value of $20.00.
  33. Keep it fresh. Every week make significant change to your Christmas displays and promotions to keep your offer fresh.
  34. Share Christmas recipes. Each week for, say, four weeks, give customers a family Christmas recipe. This personalises Christmas in your business, creates a talking point and makes shopping with you different to your bigger competitors.
  35. Free wrapping. Sure, many retailers offer this. Make your offer better, more creative and more appreciated.
  36. This is essential in any business. Manage it through your computer system with strict rules.
  37. Work the floor. Increase time on the shop floor. Be present to manage shopper flow and to facilitate purchases.
  38. Christmas is crazy busy I most retail situations. Give yourself and your team members sufficient time to recharge so the smile greeting shoppers is heartfelt.
  39. Keep a secret. If yours is a business selling gifts a partner may purchase for their loved-one, create some mystery with a closed off display for the shopper to see the products.
  40. Free assembly. If you sell items that require assembly. Offer to do this for free.
  41. Free delivery. Offer free Christmas Eve delivery for items purchased for kids for Christmas.
  42. Sell training. Leverage the specialist knowledge you have in your business by selling as gifts places at classes you run sharing your expertise.
  43. Hold back. Don’t go out with everything you have for Christmas all at once. Plan the season to show off what you have as the season unfolds. This allows you multiple launches.
  44. Share a taste. Regardless if your type of business, bake a family recipe of Christmas cake, Christmas pudding or Christmas biscuits and offer tastings to shoppers on select days. This personalises the experience in your shop.
  45. Offer hampers. Package several items together and offer them as a hamper. Time-poor shoppers could appreciate you doing this work for them. We have seen this work in many different retail situations.
  46. Buy X get Y. Encourage people to spend more with a volume based deal. Pitched right, this could get customers purchasing items for several family members in order to get the price offer you have. Use your technology to manage this.

Christmas is the perfect time to plan for next year. It is the time to do everything possible to leverage bonus Christmas traffic to benefit your business through next year.

Feel free to share these Christmas marketing tips with others.

What if the most important stream of revenue for your business was cut off overnight?

Hundreds of Australian businesses yesterday discovered that China was blocking their exporting of products to that country. According to news reports, Australian wine, copper, barley, coal, sugar, timber and lobster are set to be banned from Friday.

This is dreadful news for the businesses, those who work for them and the communities that rely on them for income and purchases. The ramifications across Australia could be extraordinary.

Hearing the news of the move by China, I wondered – what would happen to your business if a key income stream was cut off overnight?

Would your business survive? Do you have a plan B? Can you move quickly enough to recover? Were you too exposed to and too reliant on the key revenue stream?

These are questions you can discuss with clarity with hindsight. Better still, they are questions you can discuss in advance.

I raise the questions today because considering them before you face the challenges being faced right now by Australian exporters of wine, copper, barley, coal, sugar, timber and lobster gives you the opportunity today to be less reliant on a single revenue stream.

I get that this can read as a ho-hum topic, something not worth worrying about today. However, I bet there are wine makers, sugar farmers and fishermen who several days ago would have thought the topic ho-hum too.

What if the most important revenue stream to your business was cut off overnight, without notice?

Actions I think anyone reading this could consider include:

  1. Assess income to understand the income category streams on which the business most relies and take immediate steps to broaden these.
  2. Assess income sources. In retail especially most income comes from a shop or physical presence. Broaden this, rely on more than the physical presence.
  3. Assess the importance of suppliers by looking at percentage of revenue attached to each and taking steps to broaden these.
  4. Look at your business finances and consider the impact if any supporting finance arrangement was removed overnight.
  5. Workshop with key people as to what it would mean if any supplier was cut off from you or if any product category or brand was overnight stripped from your business. Those participating in this need to challenge each other.

In terms of the situation that has emerged in China this week, we need to look at our reliance on product from China, especially is we rely on people connected with wine, copper, barley, coal, sugar, timber and lobster. For example, if we have customers who work in wine businesses that export to China. How will they feel purchasing product from us that are sourced from China when China has struck so hard at the core of their income source?

What has happened in China is a reason for us to take stock, look more carefully at our businesses, and ensure that we are better structured to trade through unexpected decisions by others.

A personal story: Decades ago, my software company developed software for radiology practices, managing patient accounts and reports on x-rays. I wrote a word processor to make it easier and faster for radiologists to write report. It was a hit, gaining terrific early sales. A year and a half in, an international x-ray film supplier offered radiology practices free software from the US if they contracted to buy their film for 5 years. Our sales stopped overnight. I decided then that my company would never rely on a single customer or a single channel for the majority of business. It’s why we are now in 12 specialty retail channels, why we only sell to sell business retailers and why we will not borrow to fund the business.

A marketing tip small business retailers can leverage into additional revenue, easily

Use this unique facility to drive sales in any retail business and nurture optimism in the business and among customers.

It’s a bold claim. A true claim though in that we have the evidence to show that what we talk about here works, and works well, in hundreds of retail businesses.

Loyalty points are dead. Big businesses killed them, made them useless.

While our specialty retail POS software has a loyalty points program you can use, it is our smart discount vouchers that retailers in our community of 3,500+ retail; businesses love. Discount vouchers are part of broader loyalty tools we offer.

Note, we call them discount vouchers – you can call them what you like. The facilities give you leverage that you can employ to encourage shoppers to spend more and shop with you sooner.

Here’s a video from June this year in which we show how vouchers work and provide examples of the value they offer the business for little or no cost.

Here is a video we shot in August this year where we look at discount vouchers in more detail and explore what it looks like inside the business.

We use discount vouchers in retail businesses we operate and have done so since we first released the functionality in February 2013. They work a treat, delivering net beneficial value at no cost to the business.

The fundamental question for any retailer is do you want to grow your business? The answer, of course, is yes. Discount vouchers provide the means through which you can do this. It starts by changing the conversation, by offering something your competitors do not offer and, most likely, cannot offer.

By changing the conversation you drive a different shopper expectation and that helps shoppers see your business through a different light.

People like being rewarded for doing what they would do anyway. Through fine-tuned levers, you are able to nudge their engagement to go beyond what they would do and you can factor the cost of nudging into your pricing.

Across plenty of retail channels, discount vouchers deliver commercial benefits for retail business. Plus, they offer a community group connect that further enhances their value to the business as well as to the local community.

Everyday retail management advice: measure everything and win

Measurement is key to the success of any retail business, especially in small business retail where competition is tough.

Measuring sales, stock, employees and suppliers will profit a business if those in charge act on what measurement reveals.

This is small business retail management advice we share with our POS software customers. While it is a boring topic, it is a business critical topic for if you measure and act on the evidence you are on a path to success. Ignorance may be bliss … it is also a road to failure in business.

Without accurate and consistent measurement, you are not able to make good business decisions or to hold others to account for their actions.

By measuring you can make better decisions.

Here are some simple rules for accurate measurement in retail:

  1. Only sell what you can track – by scanning a barcode or pressing a PLU (stock code) to track the item.
  2. Do not use department keys to sell items as this denies you the opportunity of tracking individual items you sell. Scan the barcode every time!
  3. Enter into your computer system everything you sell. Record stock you receive by supplier so that you can track supplier performance.
  4. Enter into your computer system everything you return to suppliers – consignment stock, returns or damaged goods.
  5. Record all sales and other activity at the sales register by employees.
  6. Reorder replenishment stock by using your computer system to create orders for you.

My making your business data driven you are better equipped to take the emotion and gut feel out of business decisions.  This will improve decision quality and accountability and, hopefully, the return you achieve from these decisions.

Businesses which do not measure stock, suppliers, employees and sales accurately often find themselves faltering without knowing why – because they have no accurate data on which to base research.

Measuring everything reveals a path forward and this path is success.

Yes, this is a snooze of a topic. However, it is also a business critical topic offering a bankable result – if you measure everything and act on the results as revealed by the measurement.

Tower Systems helps small business measure, analyse and act. Our advice for small business retailers is considerable – reaching as far as retailers ask. It starts with our POS software and offering retailers opportunities to fully learn how this software can serve any specialty retail business that chooses it.

Advice for small business retailers on combatting the Covid recession

Whether we like it or not, the world economy is in recession, a Covid recession. While each country fares differently, the recession is global.

While small business retail is vulnerable, it is well positioned to trade out of the Covid recession. Here is our advice for small business retailers on combatting the Covid recession, or at least on guiding trading in your business to be against trend.

Our advice is based on decades of work with many different retail businesses across multiple retail channels. It also drains on our own experience running several different types of retail businesses.

  • Get shoppers buying more. Increasing your average visit spend value can be done through smart loyalty lever engagement as well as intelligent product location on the shop floor and with appropriate encouragement for multi-item purchases. Our POS software helps with all of these. It offers facilities through which you can systemise your approach to these and retailers activities.
  • Bring shoppers back sooner. You can do this with targeted emails that are based on past shopper behaviour, financial encouragement to shop sooner than they otherwise might and by offering items people collect and add to. Our POS software can support each of these activities in a consistent and easy to manage way.
  • Improve retail floorspace performance. Outside of inventory, labour and retail space are the highest costs to any retail business. maximising return from retail space and from labour engageed in managing retail space is key to success. Using our POS software you can stock more of what does sell and less of what does not sell – thereby improving the return on labour and retail space investment.
  • Broaden your shopper reach. While opening the doors is considered a marketing activity in many small retail businesses, for a small effort and investment you can be online connected to your POS software and selling products to shoppers far away, shoppers =not in your current reach … thereby improving the efficiency of the business.

Much of what a small retail business can achieve in trading against the trend of a Covid recession comes down to decisions made in the business, decisions about products, people and marketing that can be leveraged through smart POS software.

We’re here to help!

Tower Systems is grateful to serve thousands of small and independent t retail businesses in Australia and New Zealand in service of profit and enjoyment.

What does Q4 2020 look like for small business retailers

Welcome to the last quarter of 2020. What a year it’s been already.

For many in retail, what happens over the next 3 months traditionally determines the success of the full year for the business. We have been asked several times recently what the next three months look like.

Considering sales data from plenty of business and from many different types of retail businesses, we share some thought below on what we expect. Of course, our expectations are based on current Corona trajectories as at the start of October 2020. Any change to that will impact these.

  • Christmas is here, now, early. Christmas purchasing started over a month ago with sales of specific Christmas products including cards, decoration and Christmas themed items already good. People appear to be shopping to be prepared for possibly another lockdown. Some are also buying because of worries regarding the supply chain.
  • Working from home is here to stay. retailers selling products that help with working from home should have a good quarter if they continue to leverage this opportunity. There is no sign of working from home slowing, which will impact businesses that rely on major CBD business worker traffic.
  • Regional / rural property sales are strong. Property sales in regional and rural locations have surged, bringing in more people and plenty of new faces, which bring in new shopper opportunities. Serving new residents plays well for some retail sectors like garden centres.
  • People want to be happy and give happiness. Offering products that will make people happy is key to a good fourth quarter.
  • Locally made. This matters more than ever.

Focussing on these and related points positions your business well for a good last quarter.

Thinking predictions, we think that businesses that rely on strong Christmas trade have reason to expect this year to be at least as good as last year. We know one business that does more than 50% of their revenue through the Christmas season and current indications comparing this year to the last 2 years suggest they will be up this year by 20%. The product mix is the same.

The success of this last quarter really relies on your product sourcing, in-store messaging and out of store marketing … your connection with the emotional messages that matter to people, that will get them purchasing through you.

The time to act on Christmas 2020 was months ago. If you are starting now, go for it, quickly and engagingly as Christmas shoppers are spending today.

We hope that this last quarter of 2020 is awesome for your retail business and all who rely on it!

Some retail businesses are having an awesome 2020

Yes, some retail businesses are having an awesome 2020, plenty in fact. However, most of those having success this year do not want to talk too much about it. They want to keep a low profile because most of what’s in the media about business in 2020 is negative and they do not want to distract with what they think is a unique good story. Some even feel ashamed at their success.

The reality is that many retail businesses, especially local small retail businesses, are having a good 2020.

Yes, there is excellent good news out there. Here are some good news stories we see in our work with specialty retail channels, without identifying store details. These are channel-wide stories with many businesses in each channel having success.

  • Garden centres are doing very well, offering customers the ability to grow their own produce, be more self sufficient, eat more healthily. Many garden centres we are working with have been challenged to keep up with demand. They have risen to the occasion, helping many folks into their first ever veggie patch.
  • Farm supply / rural produce businesses have had a big and successful year. Sales are up as more people are living in regional and rural locations and needing more materials as they work on their properties in these locations.
  • Toy shops are doing well helping people enjoy their time at home. Those who engaged online have done especially well. Those that expanded their jigsaw, game and relaxation product ranges have done well.
  • Pet shops have done well as pets have become even more important this year, offering comfort and company, making isolation easier.
  • Bike shops are having a terrific year as they offer people enjoyable ways to remain healthy in a safe way.
  • Fishing and outdoors businesses are doing well, too, thanks to their ability to help people be more self sufficient for food.
  • Newsagents are having an awesome 2020 as they have become more relevant through offering essential services, keeping people informed and helping people enjoy home time more through their games, jigsaws, crosswords and more.

We know many small local and independent retail businesses that have done so well that they do not qualify for government pandemic assistance. Double digit growth in 2020 is real for them. They are loving being in business and serving their local community. They are loving that local shopping is more popular in 2020 too.

So, while the TV news and current affairs programs focus on stories of doom and gloom, there are many, hundreds and thousands of good stories, happy stories, stories of growth and success in small business retail … stories of success in 2020.

For many of the business owners enjoying success this year, they have made it happen through their decisions and actions, they have pursued success and for this they have every reason to be proud.

Well done to all of these small business retailers having an excellent 2020, well done!

We are grateful to be part of this, part of the community of businesses having a good year. We are thankful that through what we make we are able to play a role in helping retail businesses find and nurture success.

Now, if only media outlets could share some of the good news stories. They don’t have to look far to find them.

Staff management tips and advice for local small business retailers

In our work with more than 3,500 small business retailers across a diverse mix of retail channels, we have collected, along the way, a kit of tips and advice for managing staff in retail. We share some of these tips today here as an insight into the help we can provide beyond our POS software, beyond what you may expect from a POS software company too.

We are interested in retail business management, especially small retail business management, as we own and run shops ourselves and have done so since February 1996. We bought our first shop to give us a live test site. It’s grown since then.

Before we get to the tips themselves, we like this selection because it focusses on the management challenge as well as on the financial outcome for the business.

Here are some of the small business retail staff management tips we like:

  1. Set sales goals. In our experience, people perform well when they know the goal. It could be individual goals or a business-wide goal.
  2. Track performance. If not for reward, at least for active management engagement.
  3. Reduce mistakes and theft. Get employee code or number entered for each sale. It works.
  4. Skill your people. Make sure they understand the software and how they can use it to achieve more for the business.
  5. Change the roster. Roster changes can push back against predictability, they can also uncover opportunities.
  6. Set standards. In your POS you can establish standards for data to be followed – product naming conventions, department descriptions and more. The more consistency in your data the more valuable your data.
  7. Stop using the back room. You can’t sell product from the back room. Have staff do all pricing and other usual back room tasks on the shop floor.
  8. Track location performance. Train your staff in the process of tracking the performance of impulse locations. Moving a product could help it find customers. Make sure staff understand what you are looking for.
  9. Share basket insights. Knowing what sells alone and what sells with what can help staff make better decisions as to what is placed where on the shop floor.
  10. Ask them. Yes, ask them what you should / could stock, ask them what think a product is worth. Value their input and they will value more working for the business.
  11. Cut data handling. At every possible point, stop touching data. Having it flow from electronic supplier invoices through the POS to scanned sales through to Xero for accounting can reduce mistakes and possible fraud opportunities.

There are many opportunities for managing staff through and with your POS software. This can improve the business and enhance their experience with your business.

 

11 mistakes small business retailers make with their websites when selling online

Here at Tower Systems we develop POS software for small business retailers. We are grateful to serve 3,500+ customers in Australia and New Zealand. We also develop beautiful websites for small business retailers.

Leveraging that experience, we have evolved a suite of knowledge about works for small business retailers going online. We have plenty  of advice to offer retailers about going online.

Today, we flip that consideration, we want to take a look at common mistakes retailers make when they go online, mistakes that can cause their shop connected websites to fail or, at least, to not achieve what they hoped for.

These are mistakes we have seen retailers make, advised against and, often, had to fix once the retailers agree they were mistakes. They make our mistake list once corrective action is shown to fix an issue, thereby proving the first move was a mistake.

  1. Poor navigation. A site that is hard to get around will see people leave quickly.
  2. Unclear shipping charges / policy. People want to know what it will cost.
  3. Inadequate payment options. Credit card is as essential as PayPal, buy now pay later like Afterpay, ZipPay and Humm, Apple Pay and Shopify pay.
  4. Using photos are are blurred or with more than. one product in them. Good photography is key – yes, you can do it yourself.
  5. Using stock photos that are already on many other websites. Google likes unique photos. Take them yourself.
  6. Using the same text that is on plenty of there websites. Google likes fresh text, fresh content. Write this yourself and follow consistent standards.
  7. No chat. Chat is key because shoppers have questions.
  8. Secrecy – not including an email address, phone number and actual street address.  People want to know they can trust you.
  9. Having no USP – unique selling proposition. Really, why should people shop with your website if your website offers nothing unique.
  10. Poor fulfilment. If you take too long to fulfil, people will know and they will complain to others.
  11. No support. Your website needs support online and elsewhere, so people can find it. This could be marketing, links on other sites, links on socials and more.

Our advice for small business retailers with websites goes beyond the 11 points we have noted here. Take these as a start. Anyone with a website can address these without additional cost. Fix these mistakes and you should start to see growth non engagement with the website. This is another step to growing online sales.

Tower Systems is grateful to serve thousands of small business retailers. Working with them helps us learn every day, which we love.

3 shop local community connection and marketing tips for small business retailers

2020 is the year of shop local with a surge in people shopping locally. In our work with 3,500+ small business retailers, we have seen a surge in sales, both in -store sales and online sales with small business retailers.

It is wonderful to see, this authentic support for shop local in 2020.

Today, we share some tips for small business retailers on how to maximise the shop local opportunity, marketing advice on how to make shop local work better for you. These are marketing tips you can use right away without spending any money in most cases.

  1. What makes your business local? Know this and you can know much more about your message and how you can leverage it. For many retailers, their local connections are a point of difference. usually, what makes your business local is local knowledge. If this is you, serve this knowledge through touchpoint in your POS software. It is easy to encode local knowledge is related to what you sell and auto-serve this through customer purchases.
  2. Connect with the local community. Offer community groups fund-raining opportunities when your members choose your local business over other local businesses. It’s easy to manage through your POS software, to track the purchases by group members, given them a benefit and gift the community group itself a benefit in appreciation for their recommendation. This can be a perfect win / win / win for all in the local community.
  3. Stay connected. Through social media, email and other platforms, keeping connected with locals by sharing locally relevant information you can connect and share knowledge and this will be appreciated by locals. Your POS software can capture email addresses and share these with mailChimp for safe and spam free emails.

Know where your customers live. It’s easy to capture the postcode of shoppers. In every business we see doing this they learn things about shoppers that they can leverage, for better local community engagement especially.

Nurturing local shoppers really is all about your local community connection. It helps to have ways to do this that do not take too much time, ways that are consistently leveraged. This is where good POS software with tools for pitching your local connections can help.

Here at Tower Systems we care about small business retailers. We care for your businesses, those who rely on the business for income and your local shopper customers. We only work with and help local small business retailers with our POS software.

Optimistic about local small business retail in Australia

We have been interviewed several times this year about the state of local retail, small business retail, in this corona challenged world.

While corona is challenging, and heartbreaking, too, for plenty, in local small business retail world, it is an opportunity to demonstrate the value of shopping local, sourcing local and serving local.

People want to shop local more than ever. They want to know that where possible products are sourced locally too.

There is no doubt that we are in a period of significant change. We have the disruption of online, disruption of completely new business models, banking challenges pushing cashless, about costs that force a rethink on shop floor engagement, overcrowding in terms of retail space per capita and more. Change surrounds us. Corona is driving an increase in the pace of change and this is interesting to see.

Small business retailers who are nimble stand to gain the most.

In this change, when you bundle it all together, is opportunity to explore the business considerably outside its usual four walls and it is in this consideration that I find a key opportunity for optimism.

Change is good. Change drives innovation. innovation is key to better business results.

While there will be collateral damage through the change, those that remain confront wonderful opportunity.

The optimism for the future of local small business retail stems from seeing many businesses pivot as a result of corona, move online, offer delivery, offer click and collect, expand product mix and more. many businesses are enhancing their service in response to the needs they see locally and even far away as they reach through online.

Small business retailers can respond to needs faster than big business. Being nimble in 2020 and beyond is more important even than having deep pockets full of cash.

Innovation matters. They is where POS software can serve in that it provides a data pathway as well as low cost execution opportunities for businesses that do with to pivot or innovate or both and more.

Change is bringing these opportunities and change is key to encouraging optimism and local small business retail.

It is terrific seeing so much good news in the marketplace right now, in the middle of corona. Good news from small business retailers being smart and engaged in embracing change and the opportunities to be found from change.

Helping small business retailers embrace the covid pivot opportunity

Every day we are engaging with new opportunities to embrace the covid pivot opportunity with small business retailers in Australia and New Zealand.

The covid pivot is where a business embraces a change outside of what has been usual for the business – new products, new services, new business methods – in pursuit of new shoppers and that it does this in response to the covid challenge and opportunity of 2020. Hence, the term the covid pivot. It is real.

It is important to understand what the covid pivot it not. It is not made out of fear or desperation. It is not a last stand. It is not a retreat. No, the covid pivot is a confident move a business makes to pursue new opportunities, new customers, to expand the reach of the business. This is the pivot part. the covid part is that the virus provides opportunity, encouragement and cover, if necessary.

We are grateful to serve more than 3,000 small business retailers in our POS software community, and to be growing this daily as more join with us. Within our current community and without we are helping retailers in their covid pivot journey to find new shoppers, to expand their reach and to being new life and opportunity to their businesses.

While we get that 2020 is challenging, early on, back in march tis year, we decided to focus on walking  forward, turning here and there, expanding the business and the businesses of our customers. We think it is too easy to get caught up ion the doom and gloom of some in the media, the negativity. That’s not for us. It’s a mug’s game. That’s not us.

Opportunities abound for finding new customers in retail as well as in our space of being a small business POS software company.

In our focus on the covid pivot opportunity we are doing this here ourselves, in retail businesses we own and with plenty of our partner retailers. This is a 2020 good new story. We call it the covid pivot as something to celebrate, while not forgetting the health and personal harm and suffering that covid itself ha=s brought to so many.

Retail solutions for small business retailers in Australia

Small business retailers appreciate retail solutions, they appreciate real help to real everyday challenges.

Here at Tower Systems we offer retail solutions. Often, the retail solutions go beyond our POS software, go beyond what is usual for a POS software company.

Our retail solutions, retail advice and retail business counselling comes from a place of experience, from being retailers ourselves for more than 25 years and from our 40 years of service of indie retailers.

Here is one example of retail advice, retail solutions for small business retailers.

This is practical advice, practical retail solutions, designed for helping retailers. We call this our Small steps strategy for growth in small business retail. This is a good example of retail solutions beyond POS software.

The small steps strategy is about taking regular small steps in your retail store which compound in a way to dramatically enhance the value of each of three key components to the business. The key is that the business makes progress on one or more of three business growth levers every day:

  • More traffic.
  • More revenue in each sale – greater sales efficiency.
  • Better margin.

There is no grand plan needed, no master document full of words and charts. The small steps strategy is about simple achievable steps which and retailer can take in any type of business every day to build a stronger business.

The small steps strategy is made up of the following work for the three levers:

  1. More traffic, new customers, existing customers revisiting
  2. Consistent traffic generator promotion. Regularly promote a popular consumer product or product category outside your business – to attract new traffic. The product category will depend on your business. Ideally it will be habit based product for which you have a strong value proposition. A good percentage of customers you win from regular promotion are more likely to visit again. These customers are often worth more than what they purchase.
  3. Regular participation in catalogue and flyer based offers. They could be catalogues covering a numbers of businesses or just for your business. These do not have to be expensive.  Even flyers you make yourself and copy in house can work – having compelling offers is key with catalogues and flyers.
  4. Regular local newspaper advertising. Local newspapers will usually do deals if you offer a long term commitment.
  5. Support for local sports clubs and community organisations. For a few dollars you can have your business name promoted at games, in newsletters and at events.
  6. Branding of at least one vehicle. A couple of hundred dollars can get your name out in the community – everywhere you drive.
  7. In-store newsletter. Delivered outside the store. This is best done on a simple stand near the entrance to the store.
  8. On your window and walls. Use your front window and side walls to promote your business. The right campaign ought to bring people passing by into your store.

Through a consistent program of chasing new traffic you ensure the health of the business and protect against the cost of the natural loss of customers.

 

  1. More revenue from each sale – greater sales efficiency

Here are some simple strategies for achieving more from each sale.

  1. Uncluttered counter. Make conscious decisions about what is placed at the counter. Ensure clear air around each offer so it can be seen. A cluttered counter can hide good deals and block sales.
  2. Counter offers. Choose good margin low price products which work for your demographic by tapping into interests, desires (chocolate to eat on the way home) or value – quick decision small gift lines.Remember, a counter must be easily understood and be able to purchased quickly.
  3. High traffic bargain offers. Between the entrance and the highest first stop for traffic into the business have at least two dump bins or displays with compelling and easily understood offers. Move these weekly.
  4. In-store newsletter. Create a simple newsletter promoting the business and place it out the front of the business, in bags, handed out and even slipped into local newspapers. Get your message in front of customers after they leave.
  5. Hotspot promotions. Identify locations where customers stop the most in your store. Place other products at these hotspots which appeal and are easy to purchase. Use the HOT products to sell other product – but the impulse products have to change a couple of times a week.
  6. Dance floor change. The dance floor, the space in front of the sales counter, needs to change weekly. More often for busier shops. A fresh dance floor will show more customers ‘new items’.
  7. Coupons / advertising on call to action offers on receipts. i.e. bring this coupon back within two days for XXX offer.
  8. End of sale offer. Once you complete each sale, give customers an offer to make another purchase within a limited timeframe for a discount. This is best done with a coupon.  Consider structuring the offer to drive business in a particular category.  Track redemption by keeping coupons redeemed with receipts for the purchases.
  9. Parasite displays. These are small space displays which hang next to other products, encroaching on the space. You can see supermarkets use parasite displays well offering products from elsewhere in space committed to popular and often unrelated product.

By focusing on sales efficiency and driving a bigger basket for each sale, you set yourself up to make more from every sale.

  1. Better margin – by selling for the best price

What you charge for what you sell needs to be carefully considered.  Price is all about customer perception of value.  Value is based in a range of criteria including:

  • Added value – from purchasing from this business.
  • Perceived value – how you package a product compared to how others package the same product can lead to a different price.
  1. Manage labour to focus on products with the best return to the business. This is a balance between overall gross profit dollars and margin percentage.
  2. Look at items with a customer service component, where your expertise is required to make the sale or make good use of the products or where there is a reasonable after sales service component. These can usually carry a higher margin.
  3. Look at the items which are unique to your business in your location or nearby. If you are the only store serving the local community then you do have a pricing opportunity. These items can usually carry a higher margin.
  4. Assess why people shop at your shop. If they are shopping because of convenience then you have the capacity to charge more for this. This is why convenience stores charge more for items which you can buy elsewhere for considerably less.
  5. Involve others in setting sale price. Ask your team what you can charge for an item. Assess what they think you can “get away with”.  By polling team members, you may find that your perception on price is lower than what others expect.

You can build a stronger business by taking small steps each day which focus on new traffic, better margin and improved sales efficiency. No grand plan, no expert strategy – just small steps which leverage opportunities which exist in your retail business.

By paying closer attention to the margin you can achieve, you strengthen the financial foundation of the business and ensure that your return on inventory investment is more helpful to the bigger business plan.

Retail coaching tips for small business retailers in Australia

We are grateful to have a diverse and engaged community off small business retailers using our Point of Sale software on which to draw when putting together tips and advice for retailers.

Daily, we are engaged in coaching retailers, providing advice and practice al support to help create more valuable and enjoyable businesses. Our coaching advice ranges from motivational to the practical. Sometimes it is Point of Sale software related while other times it is not.

Always, though, our advice is shared openly and with supporting reasoning and evidence. We want what you want – a more successful and enjoyable retail business.

Here is an example of one aspect of coaching for small business retailers. It’s related to our Point of Sale software:

Measurement is key to the success of any retail business. 

Measuring sales, stock, employees and suppliers.

Without accurate and consistent measurement, you are not able to make good business decisions or to hold others to account for their actions.

By measuring you can make better decisions.

Here are some simple rules for accurate measurement in retail:

  1. Only sell what you can track – by scanning a barcode or pressing a PLU (stock code) to track the item.
  2. Do not use department keys to sell items as this denies you the opportunity of tracking individual items you sell.
  3. Enter into your computer system everything you sell. Record stock you receive by supplier so that you can track supplier performance.
  4. Enter into your computer system everything you return to suppliers – consignment stock, returns or damaged goods.
  5. Record all sales and other activity at the sales register by employees.
  6. Reorder replenishment stock by using your computer system to create orders for you.

My making your business data driven you are better equipped to take the emotion and gut feel out of business decisions.  This will improve decision quality and accountability and, hopefully, the return you achieve from these decisions.

Businesses which do not measure stock, suppliers, employees and sales accurately often find themselves faltering without knowing why – because they have no accurate data on which to base research.

Tower Systems develops Point of Sale software for a range of select specialty retail businesses.

Using POS software to reduce dead stock in small business retail

Here’s a new video from us about using our small business POS software to drive efficient inventory purchases. That’s code for reducing dead stock by buying what you actually need.

Small business retail advice: as we come out of lockdown

With several state and territory governments easing movement restrictions, people are talking more about life after lockdown, business owners are talking about this. If you have not done so already, we urge you to consider what your retail business looks like after lockdown or as lockdown provisions are eased.

Here is advice were provided to our POS software customers over a week ago.

While only you can know what is right for your own business, we offer this list of suggestions for your consideration:

  1. Change everything. This is the best opportunity to make major change. Move whole departments, change prices, change the counter focus, the counter process. Right now is a perfect opportunity for sweeping change in any business.
  2. Look at your pricing. Is it appropriate? Could adjustments be beneficial?
  3. Look at every supplier. Ask yourself, do they bring value (and joy) to the business.
  4. Make the shopping experience fresh, more appealing. Help your shoppers feel that they are in a new business.
  5. Quit hard and quick. Dump bins at the front of products you are exiting. This is the perfect time to make the move.
  6. Reconsider every business process. Is it beneficial to the business? If not, why continue with it? Be frugal with your time and capital investments.
  7. Share appreciation. From your front window to inside the shop, demonstrate shopper appreciation.
  8. Play uplifting music. Celebrate any step away from lockdown.
  9. Celebrate stories. Encourage people to share positive lockdown stories, somehow in-store on online through social media.
  10. The past is the past. It is tiresome hearing about how tough things have been, how troubling the times are, how difficult things are. People are living this. We are living this. Reminding people does not help in our view.

Now really is the opportunity for significant change in any business. Opportunities like this are rare. I urge all retailers to seize the opportunity.

Tower Systems helps small business retailers beyond POS software. We provide business management advice in pursuit of more enjoyable and successful retail businesses. As retailers ourselves for many years across several retail formats we draw on personal experiences as well as the collective experiences of our broad user community.

Advice from our POS software co. for small business retailers on reducing the opportunity of a ransomware attack

Ransomware / malware can come in many forms. Every computer connected to a network in any way is at risk.

There is no guaranteed protection but there are important steps to take. This advice provides advice designed to reduce the risk to your business.

A ransomware attack is where money is demanded to unlock your computer. Often, the computer is not unlocked even after a payment is made.

You can reduce the opportunity of being hit by an attack by taking care with emails. If you are not sure of the sender, ignore the email. Tell everyone who has access to your email. Lay out your ground rules and demand discipline.

Here is our best-practice advice to protect against Ransomware:

  1. Ensure you use professional, up to date, virus protection.
  2. Ensure you have a good firewall with strong settings.
  3. Do not click on emails or attachments unless you are sure of the sender.
    1. Be particularly wary of ZIP files in emails.
    2. The ATO will not email you.
    3. Your bank will not email you.
    4. Australia Post will not email you, not like the example I have posted.
  4. Ensure all passwords you use are strong.
  5. Consider using an email filtering facility.
  6. Do not allow remote access to your computer unless you are certain of the person accessing.
  7. Ensure you have strong passwords. A strong password should include: some CAPS, some numbers and at least one special character. Check your password at: https://howsecureismypassword.net
  8. Change your password regularly.
  9. Run an up to date operating system.
  10. Have rules on computer use: no games, no online gambling, no porn, no personal emails.
  11. Have an overarching rule: do not open any email or go to any website unless you are certain.
  12. Use a cloud backup service like the Tower backup service. This provides the fastest recovery.
  13. Have multiple backup devices for additional protection.
  14. Do not use automatic file replication programs / facilities such as Dropbox or Google Drive. If a file is encrypted with malware / ransomware it will upload to the account and infect other files.

Most ransomware attacks can be avoided by careful scrutiny of your emails and websites you visit.

Advice from our POS software company for small business retailers facing a cashflow challenge

We are asked regularly for business advice by small business retailers. It comes with the territory of being a small business focussed POS software company. It also comes with us owning and running retail businesses ourselves.

We draw on 0ur own experiences as well of those we serve in providing advice.

A question we have had recently is about how yo manage a cashflow challenge in a small retail business, a tough challenge, one that could end the business. Here is our overall advice for that situation:

The common approach we have seen from business owners is to hide from those to whom you owe money. That only serves to harm your business and put you under more pressure. It is not a smart move.

  1. Understand the problem. Know if it is short term or long term. Be certain about the role you have played. If you don’t understand the problem your fix may be inappropriate.
  2. Own the problem. It is personal. It is about leadership. Fixing this is on you.
  3. Develop a plan and document it succinctly:
    1. To borrow if appropriate.
    2. To put more of your own money into the business.
    3. To cut overheads: labour, rent.
    4. To convert more stock to cash.
    5. Work our what free cash you have availabke from your weekly trading.
    6. Ensure all creditors receive payments, no matter h0ow small. Regular payments reflect your commitment to goodwill. They also show you are not playing favourites.
  4. Talk to your creditors, apologise, outline your plan, ask for help.
  5. Act. Every decision, every action you take must work to addressing the cashflow challenge. If you have created a plan(point 3 above) act on it immediately. This is not a time to overthink things.
  6. Invest. If your cashflow challenge is because of a decline in traffic, not spending money chasing traffic will only make the problem worse.

If your cashflow challenge is more serious than a short to medium term plan could resolve it could be that your business is insolvent.

Company directors have a legal obligation to not allow their businesses to trade while insolvent.

Many have been in this situation. You can come out the other side by acting sooner, with commitment and with transparency to your creditors.

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