This blog is about acquiring wealth as a direct result of operating a fishing tackle retail operation. This blog is the first in a series of articles about profitability and how one goes about accumulating significant personal net worth.
It is important for you to know exactly where I’m coming from. My entire business consulting practice has been about profitability . . . that’s what I do. I’ve made a lot of retailers quite successful in terms of growth and hefty bottom line results.
You will be money ahead if you read my blogs not so much as to be entertained, but rather to learn the steps necessary for retailing success and copious profits. Read, heed and implement.
So, how does one become rich in the fishing/sporting goods business? There are a lot of people in the business who are just getting by, harvesting paltry profits and certainly not building a rich nest egg.
There are lots of hardworking, dedicated fishing/sporting entrepreneurs out there working long hours and trying so hard to gin up sales. But unfortunately, that’s not good enough. This situation is tantamount to a cook trying to make pasta primavera without having any idea what the ingredients are.
Working hard is not sufficient; you need a specific plan for the maximum production of profits within your business. Such an effort is called “strategic planning” for generating maximum profits given your capital investment and available time.
What is your detailed plan for generating a 20-percent year over year sales increase? Specifically, how will you increase your gross margin percent north of 42-percent? How will you increase your daily customer counts by 15-percent annually? How will you lower your operating expenses in the face of all expense vendors wanting to charge you more? In a word, exactly how are you going to achieve your profit aspirations such that you will begin to accumulate wealth?
The answer is you need a specific actionable plan for increasing sales, margins, turns and cash flow while decreasing expenses, average inventory and lost sales. The wise men say, “if you can think it . . . you can do it.”
Remember, wanting it to happen or wishing it will happen is not sufficient. You must go through the exercise of saying if I want to accomplish “X”, specifically what steps do I need to take, in what order, and over what time frame. Additionally, answer the questions who will do it, when and what metrics will be used to measure success or completion. You need a plan.
Remember, you may come up with a comprehensive profit plan, but if (1) it is a lousy or unrealistic plan or (2) it’s a good plan but your implementation and follow through of the plan is non-existent or poorly executed, your results will be most disappointing.
Strategic plans are neither fixed or static but rather they are ever changing and modifying based upon the results they are yielding. Ask yourself and your staff specifically how will you generate a 30-percent sales increase for the current year? What should you do in order to increase your maintained margins above 42-percent? How will you raise your turn rate from two to four turns annually?
If these are the results you long for then you must commit yourself to a lot of creative thinking about what and how you are doing things. It’s a pretty good bet that the business as usual format isn’t going to fly. What will fly is sustained and creative thought and detailed planning about goal setting and goal execution.
To really make it happen, you have to be willing to go out and look at a lot of competitors and other non-industry retailers. Look for original, creative and imaginative ideas. Be willing to experiment and try many tactics. Many will flop, but some will yield the big bucks.
Get out of your rut and start planning for success and wealth building. In a word, make a plan!
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