How to finance your business.

1. Sina Enayati
Industry Characteristics

2. Introduction:
In the business world, there are many characteristics for every industry. There are
challenges and needs associated with each of those characteristics. Business owners
and their chief financial officers are faced with making decisions and finding solutions
to the challenges.
We intend to discuss major industries characteristics, challenges, and the credit & non-
credit needs is a series of blog posts. Today, we are discussing retail industry.

3. Industry Characteristics Challenges Credit &
non-credit Needs
Retail  Less fixed assets
 Less credit needs
 Heavy inventory
 Very cyclical
 Seasonality
 Small to large
companies
 Last link in the
distribution change
 Variety of merchandize
 Highest customer
satisfaction
 Managing gross and
net margins
 Managing inventory
 Inventory shrinkage
 Fast-paced society
 Fast-paced
technological changes
 Staff turnover
 Fast access to
information
 Pricing
 Loss prevention
 Innovation
 Maintain customer
satisfaction
 Seasonal line of
credit
 Better IT
technology
 Training
employees
 Employee
incentive

4. The retail industry faces more challenges today more than ever before. What’s different is that they have to be
prepared for competing in a modern economy in a very tough times. Customers want new, different, quick,
and tailored goods right now. They are not willing to wait.
Retail business owners know these characteristics and feel the challenges, but in a an environment where
they have to be jack of all trades and master of all, they need other professionals to help them with their
goals. The single most important goal is to bring more customers to the doors.