A Step-by-Step Guide to Boost Sales, Improve Inventory Management, and Master Accounting
A Client’s Story of her Failing Business
Let me tell you about a client of mine. Before we met, she was getting pulled in 50 different directions, trying desperately to keep her business afloat.
She had no idea what her inventory looked like.
She hadn’t seen a financial statement in a year, and
Her marketing efforts were nonexistent.
Compounding the problem was that she was being run ragged by the daily demands of her business, which only exacerbated the lack of sales at her store. She was so overwhelmed that she didn’t know which problem to attack first, paralyzing her into inaction and making things even worse.
Where Have You Been All My Life?
One evening, she met me while out for drinks with a friend. When I told her I was a business coach and solved business problems, she half-jokingly asked where I’d been all her life. As we chatted, she realized the root cause of her problem was a lack of applying business fundamentals to set her business up for success. But she didn’t know what those fundamentals were! It was a classic case of not knowing what you don’t know. I offered to work with her, and she quickly agreed. And so we got to work.
Finding the Root Cause: What’s Holding Your Business Back?
Ours was a three-step plan to return to first principles. Failing Businesses always forget this part. We first had to get a firm grasp of her current state. Because her retail business required effective inventory management, we created a process to efficiently audit her inventory regularly. We recorded when the inventory was received, when it was sold, how much it cost, and how much we sold it for. Just these basic dimensions provided us with a wealth of insight into her operation.
Step 1: Mastering Inventory Management to Gain Control
We started by tackling inventory management. My client’s business was in chaos because she lacked a clear understanding of what inventory she had, when to reorder, and how much each item cost versus its sale price. We established a system that tracked inventory movements and provided real-time data on stock levels, costs, and profits. This not only helped her manage her inventory more effectively but also revealed opportunities to improve her margins.
We didn't use any fancy software; that would only introduce yet new costs before we were ready for them. No, we instead implemented mathematical concepts taught in The Tradesman's MBA at zero cost. Beware of consultants who just want to throw YOUR money at a problem with fancy software! Sometimes the old ways are the best ways.
Step 2: Fixing Accounting Practices with QuickBooks Online
Next, we turned our attention to her accounting practices. My client’s accountant was an old friend who had promised to ‘handle her books’ for her, but my client hadn’t seen a real financial statement since she opened! She had no idea what her monthly costs were or a true understanding of her chart of accounts. Her friend, unfortunately, had failed her on the most basic of accounting functions.
So, we installed QuickBooks Online (QBO), and I trained her on how to use it. Once she had a solid and simple accounting system in place, she suddenly had a clear view of all her expenses. She was shocked to discover how her company was bleeding cash due to numerous small charges. By implementing the accounting system, we effectively stopped the financial bleeding and could finally focus on the last problem: sales.
Step 3: Revamping Sales Strategies to Drive Revenue
Now that we had inventory and finances under control, it was time to address the all important sales. This was my client’s secret weapon. Despite being overwhelmed and under-equipped to handle the more technical aspects of her business, she was a natural salesperson who could sell ice to Eskimos.
I recommended she get out of the store and start participating in ‘off-site’ events like farmer’s markets and pop-up shops. The sparse foot traffic in her area made this a smart move. Initially, she pushed back, saying that schlepping all that merchandise around in the hot Florida sun wasn’t easy, especially for someone (ehem) over the age of 65.
But I clarified that the goal of these events wasn’t to sell products; it was to collect email addresses. These emails would feed her sales funnel and eventually drive customers to her store or online shop. Though skeptical at first, she soon unleashed her inner carnival barker and began collecting email addresses hand over fist.
From Overwhelmed to Empowered Business Owner
With a growing list of emails, we launched an email campaign to keep her store top-of-mind with weekly updates on new arrivals, specials, and sales. And yes, I helped her create the email campaign too.
If you’re feeling like my client did—overwhelmed, underequipped, and unsure of where to start—you need to schedule a free call with me as soon as possible. Now that my client has systems in place to manage her business, she suddenly has time to spend with her family. She’s no longer getting home at all hours of the night, exhausted and too tired to cook.
She has a life back.
Schedule a Free Business Assessment Call Today
If you’re interested in getting your business organized and your life back, schedule an assessment call with me. In just 30 minutes, we’ll explore what your life could look like if you put your business in order!
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