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Profit First Cash Management

profit first cash management

At the end of the day, profit is how we’re able to run a business. If at the end of the year, year after year, you’re unhappy with the profit you’re seeing, something has to change.

Enter profit first cash management. What does this mean? Essentially, Profit = Sales — Expenses. Simple right? What if we switched this equation around to account for human behavior. In other words, what if it looked like this:

Sales — Profit = Expenses.

Game changing, right?

What is Profit First?

What do we mean by profit first? Profit first teaches you to take the profit first then use the remainder to run the business. Essentially what we’re putting into practice the time-tested adage “pay yourself first.” The first step to get started is to complete the profit assessment, which you can find here.

If you’re beating yourself up for the numbers you see after completing the assessment, you’re not alone. Thankfully, this is just the starting point.

Open Your Accounts

Now that you know where your finances stand, it’s time to set up your bank accounts. The five foundational accounts include:

  • Income
  • Profit
  • Owner’s compensation
  • Tax
  • Operating expenses

And it’s recommended quilt shops should open an inventory purchases account also.

Another way to do this is to open a profit account, then transfer 1% of each sale into that account. If your business runs on $1000 / month, it can survive on $990 / month. Although this feels like nothing, you’ve started a habit that will grow month over month and change your business habits forever.

Inspiration for this post came from “Overcome Financial Stress” by Jacob Curtis published in the October 2021 issue of American Quilt Retailer.


If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.

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Creating a Stress-Free Retail Store

Stress free shopping

First, let’s address the elephant in the room; stress. Shopping is stressful! We’ve said it once before and we’ll say it again—you’re not selling products, you’re selling yourself.

Did you know 70% of customers leave a store due to the interaction they had with an employee there? On top of that, one in three customers have said they’ve lost their temper in a store. And for even more icing on the cake 88% of customers have researched their product before they go to purchase it. Realize your store evokes emotions, and try your best to make sure the space, your employees, and yourself don’t trigger bad feelings.

To understand what triggers your customers, you must understand your customer base. Then you can tailor your brick-and-mortar environment to exclude these stressors. Who is your customer, and what are they looking for? Your customer base’s emotional needs will help you determine what shopping style they’re looking for.

Types of brick-and-mortar shopping experiences

Some brick-and-mortar stores offer an experience (think IKEA). A good example of this is Adidas. Some Adidas stores have a treadmill in them so customers can try shoes on. They even have fitness coaches to give advice on the best shoes for the customer’s fitness preferences.

Others want a quick and simple experience. If this is your customer base, automate as much as your store as possible. Make sure you have a robust website with updated product and speedy online response times.

Of course, you can always shoot for something in the middle. (Think classes for your customers who want an experience and as much automation as possible for customers who would rather avoid interaction). Whatever it is, we hope your customers think of you as a trusting, helpful, and enjoyable brand!


If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.

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Pets in the Workplace

Pets at work

Pets in the workplace; yay or nay?

As of 2015, eight percent of workplaces allowed employees to bring their pet to work, a three percent increase from 2013. More recent numbers haven’t been released, but with prominent companies like Google and Amazon allowing employees to bring their furry companions, I’m sure that number has grown.

Benefits of Pets

Does your shop have a pet? If it doesn’t, you may want to reconsider.

According to this research, dog-friendly workplaces had less rates of absenteeism and higher productivity. They even reduce stress among pet-owning employees and are said to make a workplace more friendly.

Allowing a pet at work is not only a cheap wellness option (pets lower blood pressure), but could also come in handy when recruiting new hires too.

Concerns

Of course, there are many variables to take into consideration including allergies and checking with the landlord if you don’t own your building.

Other risks might be jeopardizing new business if your customers don’t like pets at work, or unforeseen risks.

To minimize these risks, make sure pets have fully updated vaccinations, maintain good hygiene, introduce them to the workplace slowly, and inform staff of dietary restrictions and needs.

Evaluate

Be sure to do your due diligence. What pets are allowed? Where are they allowed? Should you pet owners sign a waiver?

Ask around at other local businesses that include pets and think how your business compares. What do customers think? How long have the pets been around? What problems have they had?

What is your opinion on furry friends in the workplace? Leave a comment below to weigh in on the conversation.


If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you.