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How are your New Year’s Resolutions holding up?

I’m writing this on the Eve of New Year and, as always, this is a great time to reflect on what has happened during the last twelve months, and set in place promises for the New Year ahead.

By the time this appears in print you will, no doubt, be back into the hurry and bustle of the New Year’s activity. This is the period where the ink has often dried on the New Years resolutions and it’s easy to discover that many of the promises made over a glass or two of wine in late December have largely been forgotten.

So if you have forgotten your promises, or never made any to yourself at all, then I’m here with your 30 day refresher visit to help get things back on track!

New Years Promise No. 1 – I will spend less time at work

We’ll cut to everyone’s favorite first! Not too many jewelers wish they had spent longer at work during last year. There are plenty however, who would like to spend more time with their partner, family, or just enjoying things for themselves. Spending the festive season with family reminds you of why you are here, but that desire to make changes can easily disappear when you are back to the grindstone.

If you haven’t put this one in place it’s time to take steps:

1. Do the $100 tasks and give the rest to somebody else. If you want to free up your day spend the time on the stuff that matters and stop spending it on the stuff that doesn’t. It doesn’t mean Mrs. Watson’s watch battery shouldn’t get fitted when she needs it done – just that you shouldn’t be doing it. Contrary to popular opinion you can work less and earn more provided you do the stuff that increases your profitability. That means focusing on staff development, product lines, marketing and the other areas of your business that don’t involve trading time for money.

2. Schedule “your time” first. By this I mean put the activities that are most important to you to the front of the To Do list and fit the rest around it. Need to plan next month’s marketing? Then schedule this first. Plan to attend the gym everyday? Then schedule this first. This includes going through and booking your holidays for the year. You need to take time to sharpen the axe.

New Years Promise No. 2 – I will cut my level of inventory back

This one takes action – on two fronts

1. Make a plan to reduce your aged inventory and to work on it every month. Aged inventory is like grass – it just keeps growing. You can’t mow the lawn once and think it is done. You need an ongoing plan to rid yourself of those old products. This may involve:

  • Reducing products via specials (sale or ongoing)
  • Melting product down
  • Exchanging with vendors
  • Other options

2. Improve your buying. Prevention is always better than cure.

  • Take advantage of the software available that can show you product that is proven to sell elsewhere.
  • Reorder your own good sellers. You’ve just been told by the customers that they like it so don’t ignore the feedback by failing to reorder.
  • Discuss whether new product bought from a vendor can be exchanged. They are usually more willing to discuss this at the time of purchase than later when it has become old.

New Years Promise No. 3 – I will increase my sales and profit this year

Any plan has to have a strategy. If you think wishing it to increase will work, then think again.

Make a plan as to what areas you will improve in your business and how you will do it. The steps above regarding inventory will help but you need to look at other things too:

- Have I got enough margin on my product? Too often I see businesses whose sales are strong, but they are giving profit away needlessly by not asking enough for what they sell. There is plenty of information available regarding what margins are being achieved by other stores. You have no excuse for being the lowest in this area.

- Is my marketing effective? The old habits of throwing money at various media and hoping it sticks will no longer work. If you want more customers to spend more you need to develop your database and concentrate your efforts in areas that get results.

- Invest in training for your staff and for yourself. If you aren’t selling enough bridal get some help with selling bridal. If your staff need training with diamonds then get them some diamond training. Remember, nothing changes if nothing changes.

New Years Promise No. 4 – I will deal with that problem staff member

Are they still there? No one likes dealing with problems. It can be easier to sweep them under the carpet. But an under-performing staff member will take money from your business and prove disruptive to the rest of the staff. Take the steps to train them if that will solve it. If the problem is more permanent then you need to take the advice of a former colleague of mine who believed that it was best to “free these people up to pursue other opportunities!” Then if you replace them you need to make sure you don’t make the same mistake again (contact Carol below if you need to know more about how to avoid making those bad hiring decisions).

So there’s your New Year’s Resolution refresher. How many did you have on your list? How many of them have you taken action on so far?

Now’s the perfect time to recap and put your 2011 back on track where it belongs.

David Brown is President of the Edge Retail Academy, an organization devoted to the ongoing measurement and growth of jewelry store performance and profitability. For further information about the Academy’s management mentoring and industry benchmarking reports contact Carol Druan at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or phone toll free 877-569-8657.

 

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