Retail Accounting

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Retail is Detail

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ProfitIt’s a phrase that is perceived to be obvious, however under used. Certainly within the hospitality industry, having and interpreting the performance numbers of your business could be the difference between success and failure.

There are many challenges faced in this difficult trading climate, however those demonstrating success are those making clear and timely actions based on the statistics their accounts and stock takes present.

Increased profitability comes from dissecting the results and understanding both how they were concluded, but more importantly what can be done to positively influence them on-going. In most cases, the answer lies with physical actions, conducted firstly by the business leadership, and as importantly by engaging and developing the skill and knowledge of their teams.

 Successful and Proactive business leaders engage and influence a multitude of behaviours that continuously refine sales and profitability. The primary business focusses have to be those that organically influence year on year performance and exceed customer or guest experiences.

I am currently doing a series of liquor stock seminars within a major pub group. My aim is to clearly demonstrate that by investing in good accountancy, stock taking and business consultancy; you will in most cases more than recover the cost of investment and impact cash profitability significantly.

An average profit increase scenario was compiled with the delegates in each of the 6 seminars conducted so far. The average cash profit increase calculated, ranged from +£14,000 to +£31,000 per business. More incredible was that it is established through influencing the leadership and team behaviours, and without increasing footfall. Imagine the impact of increasing footfall as well!!

It’s amazing to see the pace of change and team buy in, where you can clearly demonstrate profit enhancement in cash value. Reward and recognition as a tool to influence positive profit focussed behaviour is really powerful.  I wonder how much has been lost by businesses where they removed such incentives in a bid to save what is first perceived to be a labour cost?

It’s clear and obvious, that those businesses having quality information, understanding the detail and positively motivating and engaging their teams, are not only winning loyalty and business from their competitors, but have a stable foundation to year on year profitability.

The benefit of getting into the detail therefore is obvious – and if you don’t have enough detail, or understand how to influence it, then it’s time to contact us and invest!!

Nick Chadwick. http://www.innprofit.co.uk

 InnProfit

Author: retailaccounting

CounterBooks is an online retail accounting management suite which is used by retailers across the world.

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