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Cash Flow: How To Use Inventory Management to Make More Now

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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?

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Cash Flow: How To Use Inventory Management to Make More Now

  1. 1. KNOW THE IMPORTANT METRICS
  2. 2. 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:
  3. 3. USE THE BEST SELLING STRATEGIES
  4. 4. 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
  5. 5. PAY ATTENTION TO YOUR EMPLOYEES
  6. 6. 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
  7. 7. For the full guide, visit ricssoftware.com CLICK HERE OR ricssoftware.com 800.654.3123 @ricssoftware

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