Winston Churchill once said, "Some are born great. Others achieve greatness. And some have greatness thrust upon them." And so it is with business ownership. Some are born to it; others achieve it; still others have it thrust upon them.
Whatever their route to retail ownership, few recognize or appreciate that being the owner is its own job, separate and distinct from any other job in retailing. Whether the "Owner" is one person (perhaps the founder); several people (perhaps family members, business partners, even investors); or, as in the case of a corporation, represented by the Board of Directors, the job of the "Owner" is the most under-performed and overlooked job in retailing!
Indeed, The Retail Owners Institute believes that failures in retail are traceable not to weak management, nor to weak CEOs. Instead, most retail failures can be traced directly to under-performing ownership.
Meeting the Owner-Only Responsibilities
The ROI has identified that every retail business - no matter its size - has three levels of management issues, or responsibilities, each with its own unique demands. The Institute has defined these three levels: Owner level; President level; Management level.
Too often, these three levels of issues are entangled and overlapping. And, just as often, the word "owner" is used interchangeably with "boss" or "president" or "manager". This confusion can no longer be tolerated. Even when one person must fulfill all responsibilities, it is important that the differing roles and obligations be separated.
The #1 responsibility of the Owner? Survival of the business. That in turn demands consensus at the Owner level on this fundamental question: What constitutes success? Without that consensus, a business will flounder. Only the Owner(s) can answer that question.
Success in retail does not depend on "location, location, location." Nor does selling the latest "must-have" product assure success. Today, the true retail success stories will be written by those companies whose Owners are effectively performing their actual job; doing those things that only the Owner can do.
Showing posts with label retail growth opportunity. Show all posts
Showing posts with label retail growth opportunity. Show all posts
Bigger Could Be (Much!) Better
As the current saying goes, "Why waste a good financial crisis?!" We support that rationale!
Look, independent retail owners thrive on risk-taking. They take risks every day. Buying merchandise; running promotions; hiring new people; etc, etc. These all are risks. It's every day life for retailers.
So how about one more? Right now the world is full of stores and service operations anxious to be sold. For all the reasons we all know, thousands of owners either financially must sell or they have reached the "I give up" stage. Sad, but true.
What a great time to seize an opportunity! Let it be known that you are looking to buy businesses that fit your business model. And you should be, with one caveat: get seller financing. Don't use much, if any, of your own cash. Yes, those deals are out there. So insist on them.
You and the right lawyer might build a much bigger business – fast! – right now. Lots of low-hanging, distressed fruit available. (And frankly, those retailers who have reached the "I give up" stage will be glad to realize some value from their business, instead of just winding it down. And the seller financing could give them an income stream over time as well. It can be a win-win situation for all parties...including employees and customers.)
Is "Bigger IS Better" appealing to you?
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