Retail Observer

RETAILOBSERVER.COM SEPTEMBER 2023 64 E very business is unique, but they all have lots in common. It isn't easy to run a business – thanks to the customers, suppliers, employees, and a host of other issues you must deal with daily. These are the short-term day-to-day challenges, and sometimes they can distract from the long-term goals. Is the day-to-day whirlpool dictating how you run your business? Do you come to the office wondering what crisis you'll have to deal with next? If that sounds like your typical day, then you are reacting to issues, and your business may be controlling you. Sometimes we have to deal with these issues, but how we deal with them is what truly matters. Recently a customer complained that a technician didn't complete a repair. This was news to us, as the technician had logged the repair as completed. Customer issues need to be addressed promptly, so I had to drop what I was doing and handle the situation. Once it was resolved, we decided it would be good to explore procedures to prevent this kind of situation from happening again. Within 24 hours we put a new procedure in place that not only identifies the issues, it gives us valuable feedback from our customers. The time it takes to execute the new procedure is negligible compared to the time we've spent reacting to problems. Do you map your week and carve out time to improve your business? Perhaps you should be marketing service for different appliances or manufacturers – but you need training first. Perhaps you could make more money if you became certified on sealed systems. Maybe you need another tech or office person. Or maybe you need less. Is there someone you can partner with? Adding manufacturers, warranty companies, technicians – all of these can generate revenue, but if you don't manage the growth, you could lose money, and even lose your business. Adding revenue isn't always a good thing. Remember that we are in business to make money. The issues below are part of managing your business, and there's no clear right or wrong answer. What will work is what best fits your business and goals. But if you're too busy with the day-to-day to consider these things, you are letting your business manage you. Do you set long-term goals for your business? What revenue and profits do you want for your business? How do you plan on getting there? If you don't know where you are going, you'll never get there. Create a road map to take you where you want to go, and review it regularly to ensure that you're moving in the right direction. Do you review your financial performance monthly? When I spoke to an appliance repair company about merging with and/or acquiring them, the owner proceeded to tell me what I could do to make his business better, and why it was worth so much more. When I reviewed the financial performance of the business, nothing made sense. I can't discuss the details, but when I asked him specific questions about the company's performance, he couldn't give me a straight answer. Do you know these answers for your business? What percentage of your business is warranty work? Extended warranty? COD? Do you know how much money you make on parts? Of course, we passed on acquiring the business, because the owner couldn't answer our simple questions, including how many calls they made per week, and the average revenue per call. At the end of the day, do you go home happy that the day is over? Or are you ready for tomorrow? If your business has taken control of you, you shouldn't expect that it will be easy to change overnight. Here are some things you can do to start taking control. 1. Write down your goals, whatever they are – revenue, time horizons, profits, etc. 2. Develop a plan to attain those goals. 3. Start executing your plan. 4. Revise the plan. Look at your business as a road trip to Disney World. You study a map, then you decide on the stops you want to make along the way. You'll expect detours, and it may be okay to change your destination. You hope you'll find it somewhere in Florida, but it will take a lot longer to get there without a map and a plan. Know where you want to go, and start making strides to get there. You might not make it, but you'll give yourself a better chance. Failing to plan is planning to fail! S E R V I C E D E P A R T M E N T Steven Friedman spent 17 years as the CFO for Stainsafe, during which they acquired many companies, obtained credit lines and worked with private equity companies. He also spent 3 1/2 years as a CFO consultant helping small and medium size businesses, and 3 1/2 years as a CPA working with small, medium and large size businesses. AM I RUNNING MY BUSINESS OR IS MY BUSINESS RUNNING ME? RO

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