By Tanya Long, Human Capital Executive, Argility
9 out of 10 businesses fail. What’s the formula then for success?
So far we have spoken about:
The #3 key success factor: Focus on Growth
I’m always amused at the moans and groans from staff that erupt when they walk out of an annual planning session regarding the next year’s targets. You’ll overhear remarks like: “It’s impossible!”, “What is our leadership team smoking?” Then fast forward to the next annual review and lo-and-behold, barring dire circumstances beyond the businesses control and the focus from the team on the right things, the growth and targets have materialised (if not exceeded, then a close second).
What is needed for owners and managers is to keep pushing for growth? There’s a saying that ‘Growth leads to more growth’ – and if so surely constant focus is imperative.
In order to get this right, keeping ones finger on the pulse is the key. Utilising data and software is the tool, and if your software doesn’t provide this, then change quickly is my advice. Some things you should be getting and analysing is:
- Stock movement and stock turn
- Supplier history specifically on orders and pricing
- Cash flow management and control
- Sales history – top and bottom sellers viewed not only from Gross Profit but also from quantity sold and turnover value
- Shrinkage and variances in stock takes
- Price override, promotions and discount information
- Ability to push sales to in place customers with basket increase options and promotions… to name but a few
Setting targets for growth needs to be focused in the right places and prioritised. Often retailers focus a lot on their weaknesses – but it should not stop there. Managers and owners should apply just as much focus on the strengths of their business, thus spending more energy on moving forward. Focusing on the possibilities and looking for opportunities. Without a doubt, growth in a business inspires not only staff but customers, and helps to keep the passion alive.
Article contributions taken from Neil Patel, Forbes Magazine.
Biography – Tanya Long, Human Capital Executive, Argility
Tanya Long is a Qualified Performance and Business coach, with over 25 years’ experience in Software Development for Retailers. The fusion of her retail, software and coaching knowledge is used by many to uplift businesses, entrepreneurs and individuals in achieving the results that they desire. She currently serves as Human Capital Executive for Argility and works with various organisations to design and implement their Culture Strategy aligned to enhancing their Employee Engagement to drive business results.