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It's a Crime (Or it should be)

We believe it's a "crime": too many independent retailers discover they've had a loss only when their financial statements arrive! That means they missed an opportunity to make adjustments to avert - or at least reduce - that loss. Yikes! There ought to be a law!

Why does this happen? Lots of reasons:

1. Some retailers lack the knowledge - or confidence - that they can manage and control their own profitability. 

2. Or, they think it is something their accountant, or bookkeeper, or CFO is supposed to do.

3. Plus, there's been no easy way for busy retailers to find out in advance whether they will have a profit or a loss.  

We all are used to guess-timating the projection of sales: good, bad, or sometimes ugly.  But, in projecting a profit or loss, it's typical to bog down in two areas: projecting margins, and projecting expenses. 

Why is this? 

• lack of understanding of the formula for Cost of Goods Sold 
• most financial statements show operating expenses alphabetized in excruciating detail.

Coming soon to TOPICAL TUESDAYS:

Tuesday, October 11 · "Multiple Inventory Buying Plans - Anytime, from Anywhere!"

We all know the benefits of Open-to-Buy planning: improved profits, margins, and cash flow! 

The ROI's Open-to-Buy Center and in-the-cloud, multi-department Executive Open-to-Buy Calculator now makes those advantages available to any retailer, anywhere, any time. And on your own!

Tuesday, October 18 · "The Owner's Dilemma: Fund My Retail Business...or My Family?" 

This is the conflict faced by all retail owners. We examine and explain the financial "interdependence" of your retail business and your household. Then we show how you can see - in advance - the linked cash flow demands of each. No "one size fits all" easy answers here (alas!). But, having the perspective of the cause-effect interdependence can help you manage the impacts of this inevitable conflict. 

Go here · Reserve your place now · Topical Tuesdays webinar series · Free from The ROI

From The ROI's RETAIL FINANCE BASICS Section:

The Cause-Effect Power of Your Financial Statement

What did your last financial statement indicate to you about your business? If you say, "It told me that we made a profit", or "It's just a year-end summary from my accountant", you would be wise to keep reading. 

While a financial statement does provide that information, it is really much more. It provides vital clues to what's right and wrong about your store. 

You don't have to be a CPA to read one. Just be familiar with the basic accounting terms and what they mean to your business. Here's a quick review for you on The ROI site.

About The Retail Owners Institute®

The ROI is an online, round-the-clock, 24/7 business training resource for independent retailers.  The Retail Owners Institute - www.RetailOwner.com - offers extensive, practical self-help, financial training, and resources for controlling inventory, cash flow, margins, markdowns, turnover, and more. 

Plus, much more for ROI Members. Including online Executive Calculators for retailers.  Visit The Institute today.  By retailers, for retailers.  Available nowhere else.

Need to contact The ROI? Call us toll free at 800.499.7531.  Or, use the Contact Us link on The ROI site to email us.