Retailers: "Turn on Your Financial Headlights!"

In our work with retail situations across North America, we have observed three kinds of owners:

1. Those who make things happen
2. Those who watch things happen
3. And those who say, "Uhh, what happened?!?"

Think for a moment about these owners who have become mere bystanders in their business. It's as if they are driving a car at night without the headlights on! 

The car goes just fine; it doesn't need headlights to run. But no one would drive like that, especially on a freeway at high speeds. You want to be able to see ahead, to know what's coming, to anticipate adjustments, and make them in time to stay on the road. 

The same is true in every retail business. 

Your business may be barreling down the highway without you being able to see ahead. Meanwhile, especially at this time of year, the accountants and bookkeepers will be very concerned with tabulating financial history. They are just recounting - to the penny! - where you already have been.

But as the owner of a business, your major strategic responsibilities include projecting and preparing for the future. No crystal ball required; just your experience and good judgment!

As this new calendar year begins: 

• Take time to look ahead: What trends are affecting your customers? Your competitors? Your suppliers? Your local community?
• Anticipate "what's next?" in your retail segment, from new products to fickle customers. Tap into the opinions of others, whether through your buying groups, trade associations, business magazines, online resources.
• Then, turn your attention inward. As you consider how best to respond to these pressures in the marketplace, compare the varying financial implications of those "What would happen if I...?" choices. 

Or, in other words, now is the time to "Turn on your financial headlights!"