Sunday, April 3, 2011

Setting Goals to Beat Yesterday!

Most often small business retail store owners don't set goals or plan budgets.  Some don't even keep detailed records.  They just figure all that's for the stock holders.  I'm the only stock holder in this company so whats the point.

Here is the point.  How can you ever do better, if you don't know what sales were last year.  How can you plan to grow your profits, if you don't know how you made those profits.

If you want to get a loan, the banks going to want to see how well your doing.  But beyond that how can you even know if your doing well if you don't keep detailed records. 

By detailed records I mean Daily sales, Customer count, Number of units per transaction, even broken down by time of day.  Today, because of computers its even easier than ever before.  But, if your still in the stone age get yourself a beat yesterday book from your local office supply store. You can even write a simple spread sheet, but you have to fill in the actual results daily or they will be lost for ever.  If you have a computerized POS system,  then these figures are kept for you.  Use the reports to learn about your retail business.

Now Beat Yesterday!  Set a goal to do better on this day this year then you did on this date last year!

A Sales Budget is just a projection of how much you want to make next year.  Broken down by month, week and daily sales. 

A lot of factor have to be considered. 
  • How are sales Trending
  • Season
  • Hot new product coming soon
  • promotions
  • What did you do last year
usually if sales are trending up you trend the budget up a little higher.  Even if business is trending down you should make a budget that is at least 1% higher than last year. The idea is always strive to do better.

You should keep a spread sheet print out of your monthly budget.  On it compare daily and weekly your budget, last years sales and this years. I like to keep it on a clipboard where I can see it all the time.

To increase sales you should set goals that include. 
  • Increase the number of sales transactions (More customers)
  • Increase the number of item per sales transaction (Sell more items per customer)
  • Increase the average dollars per transaction (ave total of each sale)
Now that you set  goals.  Plan out how you will get there.. Don't just look at the figures and take what comes along.  Go out there and Beat Yesterday!

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