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Are You Shop Blind?

Are You Shop Blind?

By Phil Latz

When you’ve worked inside your business for years, things become familiar. That can be a problem!

All of us see things differently. You might have heard of the expression, ‘She looks at things through rose coloured glasses.’ At one level that’s saying someone is an optimist, but it also implies they might be in denial of negative things. They unrealistically see things as being better than they actually are.

When it comes to your business, you need to see things through the eyes of a potential customer who is encountering your business for the first time. They will notice things that you overlook.

In this article I’m going to use the example of a ‘bricks and mortar’ retail shop. But the same principals apply to every other business. Your shopfront might be your website, your mobile service van or your front office. Your shop front might be your 25 year old Commander phone system playing the Greensleeves chimes when your customers are on hold.


First Impressions Count

How many customers aren’t even making it through your front door?

Don’t just imagine that you’re a first time customer, physically put yourself in their shoes! Go out of your shop, walk a block down the street then turn around and walk slowly back towards it.

As your shop gets closer, ask yourself these questions. How effective is your signage? Is it appropriate for your location? For example, a shop that most customers drive to needs larger, simpler signage than one where customers arrive on foot.

Is your signage lit at night? Wherever you’re located there are 8,760 hours in the year, but the sun is only up for 4,380 of them. If you don’t have good exterior and signage lighting then you’re hiding yourself for half of the year.

Are your signs faded? Are they current? You might be old enough to remember the huge Ansett Australia airline group that went bankrupt in 2002. It was a good test of retail travel agencies, many of whom had Ansett signage. The sharp ones soon updated their signage, but for years afterwards you could still see ‘Ansett’ posters and signs in some less well run travel agency windows.

As you continue to approach your shop, stop when you’re directly outside. Is the footpath swept and tidy? Or are their weeds in the cracks and stains from last week’s party at the pub next door?

Does your shop need a fresh coat of paint? What about the window displays? The leading department stores and specialist retailers pay professional window dressers to regularly update their displays in sync with new seasons, summer sales and so on.

Even if you can’t afford to do this, you can at least think about how you can make the most of your shop windows to maximise your sales and learn some basic tricks of the trade via Google and YouTube.

Now you’re ready to enter the store. Is the door working well? Hinges oiled, handle clean and fully working? Automatically opening doors are expensive, but ideal, especially for stores that sell larger items.


Consider All Five Senses

You’re now standing just inside the door.

What do you see? 

Are the products brightly lit with focused display lighting that really makes them shine and ‘pop’? Or is there just a row of old fluoro’s in the ceiling, three of which are grey at the ends, two more that are flickering and one that blew months ago without being replaced?

Is there a bold graphic, alluring sign, brightly lit hero product or some other feature that draws the customers’ eyes deeper into the store and entices them to come right in, not just hover at the door?

Can you see dead corners where the latest stock deliveries are piled up in cartons? Not every shop has the luxury of a loading bay or rear entrance, but even if your stock has to come in via the front door in full view of customers, you should get it out of sight and out of their way as soon as possible. 

What do you hear?

Is there appropriate music playing that puts customers into a positive frame of mind? Or is a certain staff member’s favourite death metal band being played way too loud?

Can you hear staff discussing things that should be saved for the staff lunch room, out of earshot of customers?

What can you smell?

You’d be amazed how many shop owners don’t notice that their carpet actually started to get musty two years ago. It’s like the frog in the saucepan with the heat slowly rising.

The first level you should aim for is a clean, fresh smelling shop. More sophisticated retailers actually pay specialist companies who can provide a wide range of scents to make shops more enticing to customers.

Of course, the aroma of your products is a big selling point if you’re a bakery or florist for example, so make the most of it.

What can you touch or taste?

I’m combining the last two of our five senses because when it comes to retail stores, they might well be mutually exclusive. For example, in a bakery it’s a great idea for customers to be able to taste samples, but not such a great idea for them to be able to touch fresh bread that another customer ends up buying.

However if you’re selling hard goods of any description, the opportunity for your customers to touch the product first is a unique advantage you have over your online competitors. 

Your customers want to feel the weight, texture, hardness or whatever other key attribute of each product is important to them. So let them! Obviously there are security considerations, especially if you’re running a jewellery store, but in every retail category there are ways to maintain security whilst still letting your customers immerse themselves in the key attributes of your products.

By now you should have some fresh revelations about how you can improve your store. But if you find it hard to be impartial and objective, you can always get an independent third party to give you a frank assessment. A business coach could help you here!

Whatever you do, don’t rely on what your visiting sales representatives tell you. They just want to butter you up to buy more of their products over their competitors’ so they’re not about to share any hard truths with you!


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Build Your Business Upon Good Foundations

Build Your Business Upon Good Foundations

by Phil Latz

Building a strong, long lasting business has many parallels with building a house.

If the foundations are not strong, then no amount of shiny paint or fancy lighting is going to make that house a good long term investment.

So how do you build good foundations? In this article we’ll look at six key attributes.

What if you’re not starting a new business, but already have a business that is showing some cracks? Don’t worry! There’s good news for you at the end of this article.


1. You Need Adequate Resources

In the case of the foundations for 99% of Australian houses, that means concrete. If concrete costs, say $300 dollars per cubic metre and you need 10 cubic metres to pour your foundations, then you’re going to need $3,000 to pay for your concrete.

This is one area where you just can’t take shortcuts and say, ‘I can only afford half the concrete so I’ll make the foundations smaller.’ The same applies with any business. There are many ways you can save money, but every business will have certain foundational costs that you need to be able to pay for before you start. These might include government licence fees, franchise fees or a wide range of other costs.

Insufficient capital is one of the main reasons that many small businesses fail. You need to carefully work out in advance how much capital you’ll need and how you’re going to source that money, always adding a contingency margin for unforeseen additional costs.


2. You Need a Team of Experts

Have you ever tried concreting? I’ve done enough concreting jobs to know that from now on I should leave it to the experts! If you don’t know what you’re doing, it’s quite easy to make a huge mess when pouring concrete foundations. And if you don’t fix mistakes quickly before the concrete sets, you’ve got a serious problem that will be expensive to remedy.

Even if you’re starting business as a ‘one person show’ with no employees, you need a team of experts right from the start. The exact make up of your team will vary slightly depending upon the nature of your business. But there’s a good chance your team will include an accountant, lawyer, insurance broker and finance broker. Think of your key suppliers as part of your team. They want you to succeed and will almost certainly have good advice to offer if you ask them.


3. You Need Good Plans

Builders don’t just arrive on site with their tools one morning and say, ‘Right, where shall we put this house and what size shall we make it?’

A lot of time and expense has been incurred before the builder starts work. Everything from soil samples to see what type and depth of foundations are needed to a site survey to consider the best orientation of the building. Will it catch the sea breezes? Will it make the most of the available views? Will overshadowing of neighbours be an issue preventing Council approval of your house? The full list is long.

It’s no different in business. What is your target market? Who are the existing players in that market? What will be your unique selling proposition (USP)? In other words, your point of difference that is going to cause a customer to choose you over your competitors. What will be your cost per product? What sale price will the market support? What margin does this leave you? Once again, the full list is much longer than this.

It’s far cheaper to alter walls, add rooms, deepen foundations and make other alterations while your house is still a plan on a piece of paper or computer screen. Likewise it’s cheaper to plan your business in advance rather than use the, ‘Let’s just try it and see!’ approach, where too many mistakes could leave you bankrupt.


4. You Need Reinforcement

Concrete is strong in compression. Steel is strong in tension. They’re as different as chalk and cheese. But combine the two and you have reinforced concrete, something greater than the sum of the parts, that has literally revolutionised the shape of modern buildings and cities.

Likewise in business, you need people that you listen to who have a different perspective to you. That might be because they have different personalities and outlooks on life. It also might simply be a case of someone looking at your problems with a fresh set of eyes.

When you’re buried within the daily detail of your business for 40, 60, 80 hours per week, you can lose perspective. This is where a coach or business mentor can help. Other key people who can provide this vital different perspective might be your wife / husband / life partner or business partner.

As well as providing different ideas, these people are vital in giving you support and encouragement. It can be very lonely owning and running a business. Even if you’re surrounded by staff, as the owner, you face responsibilities that are often hard to share. Having discreet family, friends or professional advisors gives you a shoulder to lean on.


5. You Need Independent Expert Advice

Before the first concrete truck arrives on site to pour the foundations, a civil engineer who is independent from the builder and developer, must come on site and inspect the preparations. They look at all of the formwork that will define the boundaries of the foundations. They check that the steel reinforcing bars and mesh have been correctly specified, placed and tied.

For a standard house foundations engineer might only be on site for a single hour or less. But their expertise can determine the lifetime success or failure of those foundations. They have to come at the right time. Once the concrete has been poured, most of the critical details that determine a sound foundation will be hidden forever. It will be too late for their advice then.

It’s no different in your business. The best time for you to have an expert come in is before you commit – before you start pouring concrete. This is different to the ongoing support and reinforcement that I was talking about in the previous point. This is key expert advice on critical questions or decisions that might only have to be made once at the start of a venture or at certain cross road points. Sure, their hourly rate might seem high, but the right expert advice at the right time could save you a fortune, and possibly make you one.


6. What if You’ve Made a Mistake?

What if your business is already up and running? It might have been going along for years. Perhaps things looked strong in the early years, but now it’s cracking up due to poor foundations.

Don’t worry! In building they call it underpinning. When foundations of an existing building, even an old one, are cracking up or where never adequate in the first place, they can be dug out and replaced with new ones.

Underpinning can be expensive because it needs to be progressively done in small stages whilst each section of the building above is propped up.

Once again, this is where a business coach can help. You can’t tackle all of your foundational cracks at once. But they can help you decide which are the key sections that you need to reinforce first. 

The most important thing to remember is that your cracked foundations are not going to magically fix themselves. It might require some painful digging and you might feel a little precarious during the transition, but the only way to put your business on firm foundations is to take action!


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