As a business owner, you’re constantly checking your bottom line. One of the biggest problems small businesses face today is the lack of increasing cash flow. But are you keeping track of the factors that are affecting that number?
3. KNOW THE IMPORTANT METRICS
GROSS MARGIN ROI TURN RATE
GMROI =
Gross Margin
Average Inventory Cost
TURN RATE =
Cost of Goods Sold
Average Inventory for a Given Period
Before you can effectively expand cash flow, you
need to understand two important metrics:
5. USE THE BEST SELLING STRATEGIES
Knowing that inventory is a huge factor in seeing positive (or negative)
cash flow, it’s important to evaluate your selling strategies.
HEAT-MAPPING: The practice of identifying your
hot selling spots in your store. It’s a great tactic
for moving low-performing inventory quickly.
TIP: PRACTICE HEAT-MAPPING
7. PAY ATTENTION TO YOUR EMPLOYEES
Every store needs to look at employee performance every
quarter so you can identify which employees are crushing
it and which might need more help or training.
TIP: EMPLOYEE REVIEWS
8. For the full guide, visit
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