10 MYTHS OF RETAIL MANAGEMENT AND OWNERSHIP

1
10 MYTHS OF RETAIL MANAGEMENT AND OWNERSHIP

• Presented by
• Rosalie Jackson Regni
• Assistant Professor,
• Department of Fashion
• Virginia Commonwealth University

2
Myth 1 Anyone with a good idea can get money to
start or grow a business

• REALITY You need to sell yourself and your
  ideas. You need a strong business plan.
• Why a business plan?
• Investors and bankers want to see that you have
  detailed plans of how to spend their money and
  make your business successful
• Provides a blueprint for your business helps
  you measure your success and monitor problems

3
Anyone can get money

• Identify your niche
• -even with a good idea, you need to be able to
  communicate to investors and customers the
  factors that differentiate you from competitors
• -why will customers come to your store?
• -what will make them buy?

Ideas that fly
4
Myth 2 Competitors are the enemy

• REALITY Your competitors can be great sources
  of information, inspiration, and ideas
• Think about this
• The more retailers, the healthier the business
  climate
• Learn from competition what works, what doesnt
• Find creative ways to differentiate your business
• Network with competitors in other cities who
  dont directly target your customer
• Form support groups, coordinate marketing efforts

5
Myth 3 If my product or service is desirable to
customers, then extra-mile service is not
necessary

• REALITY Wrong, wrong, wrong! Your customers
  demand and deserve excellent service
• What you need to provide
• Well-trained, highly motivated sales associates
• Convenient, easy-to-shop shopping experience
• Product information and a fresh assortment
• Customer rewards and incentives

6
Myth 4 My vendors/ suppliers are there to
service me and make me happy. It doesnt matter
how I treat them.

• REALITY Your suppliers can be strong business
  assets and can help you be successful if you
  establish good working relationships with them
• Points to consider
• A cooperative partnership doesnt diminish your
  authority or expectations of good service
• Human nature is such that those who are treated
  fairly usually give fairness in return

7
suppliers are there for my convenience

• Suppliers usually have the inside track on what
  works and doesnt work in the business
  products, promotions, etc
• Usually, suppliers offer extra incentives, new
  product offerings, and special buy merchandise to
  their best customers
• You need favors, they occasionally need
  understanding work together!

8
Myth 5 After my business is successful, I can
sit back, relax, and take lots of vacations

• REALITY If you want to be successful, you cant
  be an absentee manager
• Think about this
• You should use your most valued employees to take
  over some of your work and trust them with
  responsibility, but keep final control in your
  own hands

9
sit back and relax

• 2. You probably wont be able to take much time
  off at all for the first 3 years of your
  business, or after you have decided to expand
• 3. It has been said that small business owners
  leave jobs where they resent working 50 hours a
  week for someone else, only to find that they
  must work 80 hour weeks for themselves

10
Myth 6 After I complete my business plan and
secure the funds to open/ grow my business, I can
just put it away in the archives

• REALITY Use your business plan as a guide and
  checkpoint. Revise and update it at least
  annually to make sure that you are on the right
  path. Pay particular attention to the cash flow
  forecast to ensure that you have the daily and
  monthly funds to operate your business and pay
  your bills

11
Myth 7 Making sales is the most important
function of the business

• REALITY Staying in business for the long term
  and delivering reasonable profits each year are
  the goals that all business owners should pursue
• Thoughts
• It really doesnt matter how many pieces of
  merchandise that you sell if you arent making a
  reasonable profit on each sale.

12
.making sales

• Just selling quantity to customers is not nearly
  as important as selling the right merchandise
  that will result in happy customers who will
  become loyal customers
• Small businesses realize the bulk of their sales
  from repeat customers.

13
Myth 8 I already know enough about my product
and running a business. I dont have time to
pursue more knowledge

• REALITY Failure to keep up with trends and new
  developments will cause you to lose out to those
  who stay ahead of the market.
• Consider this
• Our world is changing so rapidly that we must
  stay up-to-date with technology, trends, and
  changing customer tastes and lifestyles.

14
I know enough

• As a small store owner, you are at a disadvantage
  if you do not research and study
• -new marketing methods
• -new product developments
• -new technology to help you manage your business

15
I know enough

• How do you stay up-to-date?
• Study trade journals and industry literature as
  well as consulting vendors to stay current with
  new product
• Attend trade shows
• Poll customers about their changing needs and
  tastes
• Watch the competition
• Take classes to keep you informed about new
  technology

16
Myth 9 Once I have established a product
selection that my customers like, there is no
need to change it

• REALITY Humans get bored with the same old
  merchandise. We all like the new and updated.
• Consider this
• The very nature of the fashion business (any
  fashion, even more traditional product) is that
  it is always in a state of change.

17
no need to change

• It is foolish to continue to carry slow selling
  items just because you have always offered
  them. Clean out slow sellers to make way for
  more inventory on items that move.
• Remember you cannot be all things to all
  customers.

18
Myth 10 If my business takes off right away,
its time to expand or open a branch store in
another location

• REALITY Dont jump too quickly into an expanded
  business that may prove to be a bite that is
  bigger than you can chew
• Move cautiously
• Sometimes it is better to reap a decent profit
  from a small business than to deal with the
  headaches (and possible pitfalls) of a larger one

19
to expand?

• If you do decide to expand or open another store,
  plan that expansion as carefully as you did your
  first opening no shortcuts
• Give it time you (and your investors) will want
  to see a pattern of success before committing to
  a bigger plan