Here are 3 Basic Principles on How to Make Your Business ‘Recession-Proof’:
- A recession can be a blessing in disguise if it presents an opportunity for you to improve productivity and sell-through, boosting profit margins. The first step is to focus on more profitable product lines and closures during the economic downturn. It’s crucial to have the ability to target a faster turn.
- Next, keep inventory fresh and buy as close to the season as possible, trends change and you always want to be invested in trends that are in demand. It’s necessary to know how to find this in your POS.
- As expenses rise, focus on performance and productivity.
- Make all salespeople a variable expense. Coach their performance and base it on incremental improvements.
- Target your marketing and focus on results. Marketing costs are increasing, but as long as the ROI is there, you are growing. Spending without knowing, measuring and having a goal for your ROI is throwing money out the door.
Not sure if you’re doing it right?
If you need someone with a proven track record helping retailers have tremendous success by applying these 3 basic principles, we, at Retail Smart Guys can help you.
We have a simple mission for our clients, and it’s this:
For you to come home at the end of the day, sit back, and relax when you get our email that says: “It’s all taken care of.”
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