This haste can lead to serious issues down the road, and many retailers have struggled to keep up with out-of-control growth. Here are some of the best strategies for ensuring sustainable expansion of your retail business.
Create a Detailed Expansion Plan
Knowing that you want to grow your retail business is a good start, but you can only go so far if that growth is constantly improvised. Instead, make sure to plan for your future success by considering your opportunities for growth as well as anticipating potential threats and weaknesses that could derail your expansion. Having a detailed business plan can help, as well as understanding your growth objectives and levers—how you plan to achieve expansion.
Set Concrete and Achievable Milestones
One of the easiest ways to let your growth spiral into chaos is to lose sight of your objectives. Make sure to create goals that have tangible ways of measuring success. This can be as simple as increasing sales from month to month, improving foot traffic, and generating buzz for your store. By staggering these goals, you can have a straightforward way of measuring your success, and they can also work as excellent motivational tools for you and your staff.
Adjust Your Inventory Flow
If you are growing, your inventory is going to experience much higher turnover than you were previously accustomed to. It can be easy to let this get out of control and lose track of how much you need to order every month. Keep a close eye on your inventory, especially compared to your sales, and start gradually expanding your inventory purchases to match growing demand. In addition, you can reach agreements with your suppliers to provide rush deliveries on items that may sell out faster than anticipated.
Embrace Technological Advancements
While the basic systems you installed when you opened your store are great at managing a small business, a growing establishment has expanded needs and requires you to be conscious of several additional factors. Consider investing in technology such as cloud-based point of sale (POS) platforms that integrate several management tools into one service. Modern POS systems offer you sales reporting, inventory management, marketing tools, and even payroll administration with one single service. This can help centralize your operations, as well as provide the robust data you need to plan for success.
Train Your Staff
You might correlate increased sales with a need to hire more people. However, in many cases gaining extra staff can result in ballooning overheads and sluggish sales. Instead, invest in training your existing staff and empowering them to succeed.
Growth is good, unless you’re not prepared to adjust to it. Invest the time and resources into planning for success, and watch as your retail business blooms into a booming enterprise.