The document outlines various tools for business management and success, including ownership structure, inventory planning, theft control, advertising strategies, technology usage, pricing strategies, cash flow management, and self-improvement techniques. It emphasizes the importance of establishing a clear management structure, utilizing data for inventory and sales planning, maintaining effective marketing efforts, and regularly reviewing financial health. Each tool is elaborated with techniques and strategies to enhance business performance and profitability.

1. Tom Shay, CSP Certified Speaking Professional

2. Tool #1 Ownership/management structure Establish a written chain of command Develop job descriptions and job specifications Utilize incentives to give your staff a reason to excel

3. Tool #1 Ownership/management structure Have a continual staff education program Test your staff by word and action

4. Tool #2 “ Open to buy” planning What an “Open to buy” is

5. Traditional Inventory & Sales

6. Desired Inventory & Sales

7. Tool #2 “ Open to buy” planning Chart as a %, by department and fineline, the sales within your business according to month Chart as a %, your inventory on hand, month by month, according to the same parameters

8. Tool #2 “ Open to buy” planning Compare the percentages of sales and inventory to see where you are getting the most sales for your inventory investment Calculate where and when you need to shift inventory

9. Tool #2 “ Open to buy” planning Use the open to buy calculator to determine how much and when to invest your inventory dollars There is an “Open to Buy” template on the Profits Plus website

10. Tool #1

11. Tool #3 Theft control Average non-professional thief: 1.6 times per week Average item is $55 Caught 1 in 48 times 70% unplanned

12. Tool #3 Theft control Shoplifting control Office audit control Delivery control Hiring process “ What one thing would your former employer tell me about you?” Personal schedule variety

13. Tool #4 Advertising/promotion plan Establish a budget on an annual basis Determine what media you want to use for your advertising as compared to being “sold to” by a local media sales representative

14. Tool #4 Advertising/promotion plan Allocate a portion of your budget that will be spent exclusively for unique ways of inviting your existing customers to continue to do business with you Plan your work, and work your plan

15. Tool #4 Advertising/promotion plan Do not become “wedded” to an idea and stay with it too long There is an advertising, marketing and promotion planner on the Profits+Plus website

16. Tool #1

17. Tool #5 Business and marketing plan Statistically know in great detail who your customer is How are you locating your end user customers? Can you describe them? Where do they live?

18. Tool #5 Business and marketing plan In comparison, locate demographics which define your marketplace Is there a match? Identify the competition and become well versed in their business

19. Tool #5 Business and marketing plan Have a plan as to where your next sales growth is going to come from Develop your “elevator speech” and share it with your staff

20. Tool #6 Technology usage Review the detail in which you are tracking the sales of your business Shop to determine if the software package you are currently using is still the best one for your business

21. Tool #6 Technology usage Utilize all of the modules within the software package Is your software package an integrated system?

22. Tool #6 Technology usage Have a computer technician examine your hardware to make sure you are getting the maximum utilization and speed

23. Tool #6 Technology usage If not an annual inventory, implement a sequential sectional inventory

24. Tool #7 Pricing strategy Everyday sale price items Price sensitive items See addendum #1

25. Tool #7 Price Sensitive Items Has a “sister” product that can be an everyday sale price item The same item, but in a different size/color, is an everyday sale price item Has additional benefits/features that can be easily demonstrated or explained Not sold in mass merchants

26. Tool #7 Not advertised by competition Solves a problem/need better than the product asked for Scores 3 or less on the 8 remaining blind price item list Quality is immediately proven by way of manufacturer name

27. Tool #7 Pricing strategy Blind price items See addendums #2 & #3

28. Tool #7 How do you determine a blind price item? Takes extra time to price Requires extra handling for the customer Is a natural “add on” sale item Seldom used 5. Is a repair or replacement item

29. Tool #7 6. Has luxury or status appeal 7. Is seldom promoted 8. Is not a seasonal item 9. Is a recreational item 10. Not sold in mass merchants

30. Tool #7 Score one point for each yes answer. Possible margins are: 1 to 3 points: 40% - 45% 4 or 5 points: 46% - 55% 6 points: 56% - 60% 7 points: 61% - 65% 8 - 10 points: 66% - ?

31. And your current gross margin is: If you raise your price: 10% 15% 20% 25% 30% 35% 40% 50% 5% 33.3 30.0 25.0 16.7 14.3 12.5 11.1 9.1 6% 37.5 28.6 23.1 19.4 16.7 14.6 13.0 10.7 7% 41.2 31.8 25.9 21.9 18.9 16.7 14.9 12.3 8% 44.4 34.8 28.6 24.2 21.1 18.6 16.7 13.8 10% 50.0 40.0 33.3 28.6 25.0 22.2 20.0 16.7 11% 52.4 42.3 35.5 30.6 26.8 23.9 21.6 18.0 12% 54.5 44.4 37.5 32.4 28.6 25.5 23.1 19.4 15% 60.0 50.0 42.9 37.5 33.3 30.0 27.3 23.1 16% 61.5 51.6 44.4 39.9 34.8 31.4 28.6 24.2 18% 64.3 54.5 47.4 41.9 37.5 34.0 31.0 26.5 20% 66.6 57.1 50.0 44.4 40.0 36.4 33.3 28.6

32. Tool #1 Changing Prices Calculator

33. Tool #7 Pricing strategy Promotional price items Variable pricing techniques See addendum #4

34. 24 Cent Pricing System Cost You add Old Retail Add 24 cents Round up to Minimum Margin .01-.10 .10 .20 .24 .49 80.00% .11-.15 .15 .30 .24 .59 75.00% .16-.20 .20 .40 .24 .69 71.00% .21-25 .25 .50 .24 .79 68.00% .26-.30 .30 .60 .24 .89 66.00% .31-.35 .35 .70 .24 .99 65.00% .36-.40 .40 .80 .24 1.09 63.00%

35. Tool #7 Pricing strategy $2.00 to $9.99 .29 .49 .79 .99 $10.00 to $19.99 .99 $20.00 to $49.99 $_1.99 $_2.99 $_4.99 $_6.99 $_7.99 $_9.99 $50.00 and above $_2.99 $_4.99 $_7.99 $_9.99

36. Tool #1

37. Tool #8 Cash flow management Understand the basic terminology of accounting Cash basis vs. accrual Current assets vs. long term Current income, retained earnings, stockholders equity

38. Tool #8 Cash flow management Be able to read a balance sheet and a profit and loss statement Create budgets for each of the line items of your profit and loss statement Review monthly

39. Tool #8 Cash flow management Utilize a cash flow statement

40. Tool #1

41. Tool #8 Cash flow management

42. Tool #8 Cash flow management Update your cash flow statement each month

43. Tool #9 Self preservation and improvement Develop an advisory board and find a mentor Take time to rest yourself Recharge yourself by way of trade shows, conferences and books

44. Tool #1

45. Tool #9 Self preservation and improvement You cannot fly your business alone Take the credit, take the blame, and know when to say when

46. The 9 Piece Toolbox Are all of the tools in your toolbox? Are they kept in top condition for peak performance?

47. A wise man will make more opportunities than he finds . - Francis Bacon

48. Final Note This presentation will be specialized to your industry and your attendees’ specific needs. For more information about having Tom present for you, contact us at (727)464-2182 or visit our website: www.profitsplus.org