June 14, 2010

Would You Believe?!
Retail Business Gets Bank Loan!!

Last week, a retailer we know received a surprise phone call. It was from a bank loan officer, one of several this retailer had been pursuing over many months of "we will have to see more results" push back.  (You know the feeling?)

Well, in this case, the banker said their bank would lend the money, both a long-term loan and a line of credit! 

"Oh, really?" was the astonished reaction from the retailer. (You can imagine, right?)

Why are we sharing this story with you? For several reasons:

1) This is one of the first instances we've heard of for banks to actually lend to retailers.  Other "small businesses" have been heralded by bank advertisements, but not retailers.

2) This retailer got the loan after three, yes three, years of losses. (Can you relate?)

3) This retailer used to have low inventory turns, but has learned the danger in that. (You can relate, right?)

3A) That's why, over those three years of losses, their debt-to-worth ratio was actually improving! And who cares about ratios more than "the bottom line"?  Yep, bankers!

4) This retailer has been a determined student of the financial training on The ROI site. And most of all, they learned to speak "conversational banker-ese". (ROI Members have unlimited access to all three sections of Conversational Bankerese.)

Is there hope for you?  Absolutely!!

Ratios: The "Vital Signs" of Your Business

Now more than ever, retailers must know how to measure their own vital signs. No, we don't mean "top line growth", or even "a strong bottom line."

The true indicators of the well-being and viability of your business are found on the Balance Sheet. And you too can quickly evaluate your business, just like the pro's do.

Here's one place to start. Go Figure: Find Your Store's Key Ratios...in 12 Seconds Each! 

Want more detail? Then check out The ROI Short Course, Section I, Chapter 5 (in the Members-Only Collection)  to learn more about ratio analysis.   

Then, once you know how to do your ratios with a pencil, automate the process! ROI Members can take advantage of our online Key Ratios Calculator.

Take a few moments to spend some time in the Financial Tools & Tips section of The ROI.  Ratios CAN (and should!) be your new "BFF"!

Feedback from ROI Member

Last week, we received the following email:

I have been in business for around 30 years with a family retail business.  I have never had anyone explain or been able to understand how the four financial plans work together until I took your short courses.  I appreciate you sharing this information in an easy to understand approach.

The ROI has been built for retailers just like this.  We are gratified - and energized! - by this feedback. But most of all, please keep visiting The ROI site to take advantage for yourself.

Retail Business Insight from The ROI

Just Semantics? Maybe

Commonly, the 92% of all retailers with fewer than 100 employees are referred to as "small businesses".  Yet they have all the competitive, management, people, cash, and profit issues that "big" retailers have.  And with a fraction of the top management to handle them.

At The ROI, we never refer to such retailers as "small".  Independent, yes!  But volume is the only "small" thing about them.

What? You're Not an ROI Member?

Joining The ROI could be the best - and least expensive! - insurance policy you ever took out. Just $24.95 per month gives you unlimited access to the entire ROI site - including all parts of the Members-Only Collection.  Available nowhere else.  Find out more.  Take The ROI's online Site Tour.  Remember, 2/3rds of the content at The ROI is available to Members Only.  Specialized Retail Business Calculators. Online, self-paced Financial Basics Seminar. ROI Guides. Glossary of Retail Financial Terms. Podcasts. And much more. Start now!

It's time to team up with The ROI to train your retailers on "the business of retail".  Outsource the training and support on financial fundamentals to The ROI experts. Focus your internal resources on your industry-specific issues.  (Now that's good resource management!)  Best of all, have an immediate impact with your retailers, just when they need it the most. Find out more.

About The Retail Owners Institute®

The ROI is a round-the-clock business training resource for independent retailers. The Retail Owners Institute – www.RetailOwner.com - offers extensive, practical self-help, training, and resources for controlling inventory, cash flow, margins, markdowns, turnover, and more.  Plus much more for ROI members. Visit The ROI today. By retailers, for retailers.  Available nowhere else.