11 October 2009
When it’s time to consider a Store Closing or Going Out of Business Sale
Oct/16/2009 09:56 Filed in: Store Closing
Sale
The
year 2009 is quickly coming to a close. For most
retailers and in particular the small independent
retailer, this year has been extremely tough. Many
are counting on the last two months to save their
business. My suggestion to those retailers is to take
a little time and evaluate if your business is still
viable or if you are just not willing to admit it’s
time to look for new opportunities.
Ask yourself the seven questions below:
• Am I adequately paying myself?
• Am I putting personal money into the business to meet daily expenses?
• Am I considering a home equity loan or using credit cards to pay bills?
• Have I significantly reduced advertising to save money?
• Is the business causing family stress or affecting my health?
• Has my market area deteriorated significantly?
• Am I burnt-out on retail?
If you answered “yes” to any of them, it might be time to consider a Store Closing or Going Out of Business Sale and this holiday season may be the best time to do it.
Ask yourself the seven questions below:
• Am I adequately paying myself?
• Am I putting personal money into the business to meet daily expenses?
• Am I considering a home equity loan or using credit cards to pay bills?
• Have I significantly reduced advertising to save money?
• Is the business causing family stress or affecting my health?
• Has my market area deteriorated significantly?
• Am I burnt-out on retail?
If you answered “yes” to any of them, it might be time to consider a Store Closing or Going Out of Business Sale and this holiday season may be the best time to do it.
Small Retailers Have A Right To Be Pessimistic
Oct/15/2009 08:31 Filed in: Store Closing
Sale
As
we head into the holiday season, owners of small
retail stores are less hopeful, than other small
business owners according to a new study of small
businesses released by American Express OPEN.
Retail owner respondents were the least optimistic about the current business environment among all small-business owner respondents, according to the American Express OPEN Small Business Monitor.
Given their bleaker outlook, small-retail-business owners said they are taking severe measures to deal with the current downturn, such as:
* 50 percent instituted a hiring freeze.
* 40 percent asked family members to work for no pay.
* 37 percent mandated a salary freeze.
* 36 percent stopped taking salaries altogether.
* 34 percent tapped into their personal assets.
* 33 percent reduced employee hours.
* 21 percent took a second job.
Hopefully these stop-gap measures will help these small-retail-business owners make it through the recession, but they must be realistic and analyze their situation. It will be a long time before retail ever gets back to the levels of the early 2000’s. For many the current recession only accelerated their problems.
Retail is changing. The way people shop is changing. And the day of a trip to the mall to shop being a form of entertainment is over. On-line shopping continues to grow and as it continues to be more inter-active and part of the social media craze, it will make the brick and mortar store owners job even tougher.
For many small-retail-business owners the above actions are only draining their savings and retirement funds. The longer they wait, the less they will have when they finally close their doors. Yes, I said “close their doors”. The small retail business is next to impossible to sell and their best option is to conduct a Going Out of Business or Store Closing Sale.
Retail owner respondents were the least optimistic about the current business environment among all small-business owner respondents, according to the American Express OPEN Small Business Monitor.
Given their bleaker outlook, small-retail-business owners said they are taking severe measures to deal with the current downturn, such as:
* 50 percent instituted a hiring freeze.
* 40 percent asked family members to work for no pay.
* 37 percent mandated a salary freeze.
* 36 percent stopped taking salaries altogether.
* 34 percent tapped into their personal assets.
* 33 percent reduced employee hours.
* 21 percent took a second job.
Hopefully these stop-gap measures will help these small-retail-business owners make it through the recession, but they must be realistic and analyze their situation. It will be a long time before retail ever gets back to the levels of the early 2000’s. For many the current recession only accelerated their problems.
Retail is changing. The way people shop is changing. And the day of a trip to the mall to shop being a form of entertainment is over. On-line shopping continues to grow and as it continues to be more inter-active and part of the social media craze, it will make the brick and mortar store owners job even tougher.
For many small-retail-business owners the above actions are only draining their savings and retirement funds. The longer they wait, the less they will have when they finally close their doors. Yes, I said “close their doors”. The small retail business is next to impossible to sell and their best option is to conduct a Going Out of Business or Store Closing Sale.
A Store Closing Sale – One Of The Toughest Decisions You’ll Ever Make
Oct/14/2009 09:12 Filed in: Store Closing
Sale
There are many reasons small retailers close their stores; declining sales, changing retail environment, personal or family illness, retirement, burn-out, loss of lease, too much competition and a hundred other very legitimate reasons. But no matter what the reason or how strong the need, making that decision is always extremely tough.
Seth Godin, author & professional bogger, posted “Make a decision” on Seth’s Blog. He points out that no matter what the outcome, making the actual decision is the most important thing. It is the starting point for all actions, and from there you can make any necessary adjustments. By not making a decision, you’re actually making one.
I’ve talked with hundreds of small retailers that were considering conducting a Store Closing or Going Out Of Business Sale that knew that they should close their store, but needed just a little more time to think about it. Guess what? The decision was never made. They didn’t make the decision to take action to solve the challenges that they faced with their business or did they make the decision that it was time to close their store.
Listen to Seth – right or wrong make a decision – it is the start to your solution.
Source: Seth’s Blog, read the full post here.
Selling A Small Retail Business - No Easy Task
Oct/13/2009 09:58 Filed in: Store Closing
Sale
A
recent post on
Small Business Trends by
Anita Campbell, titled
“Up-tick in Businesses Being Sold, But Prices Are
Dropping” points
out that as the current recession levels out, the
number of small businesses being sold is starting to
pick up. The problem for the small business owner
that has to sell is that the pool of prospective
buyers still remains fairly small and those buyers
are looking for real bargains.
Selling any small business has always been tough, but selling a small retail business has been among the toughest sales. In reality, the best way for most small retailers to sell their business has been to sell it to their current customers. By that, I mean they will get more for their business by conducting a Going Out of Business or Store Closing Sale than by selling it as an on-going business to a bargain hunting buyer.
If you need or want to sell your small retail business, you should talk with a retail professional that specializes in conducting Going Out of Business and Store Closing Sales to determine if that is the right approach for you. They will be able to give you a good idea of the estimated sales volume from your Store Closing Sale, how long it should take and what their fees would be.
CCH Consulting, LLC offers this service. Visit the website a www.retailstoreclosing.com to learn more.
Selling any small business has always been tough, but selling a small retail business has been among the toughest sales. In reality, the best way for most small retailers to sell their business has been to sell it to their current customers. By that, I mean they will get more for their business by conducting a Going Out of Business or Store Closing Sale than by selling it as an on-going business to a bargain hunting buyer.
If you need or want to sell your small retail business, you should talk with a retail professional that specializes in conducting Going Out of Business and Store Closing Sales to determine if that is the right approach for you. They will be able to give you a good idea of the estimated sales volume from your Store Closing Sale, how long it should take and what their fees would be.
CCH Consulting, LLC offers this service. Visit the website a www.retailstoreclosing.com to learn more.
Store Closing Sale Signage - A Billboard for Success
Oct/12/2009 15:39 Filed in: Store Closing
Sale
There
are many marketing tools available to the small
retailer when it comes time to conduct a Store
Closing Sale. None is more important than the use of
temporary signage to communicate your message to
passer-byers. This includes banners, window signs,
sidewalk signs and in some cases even the "sign
walker". No one should be able to walk or drive by
your store without knowing that there is something
special going on. Here are a couple of good examples.
Of course how many, what kind and where they are placed, depends on your particular location. In many communities, there are local sign ordinances that limit what you can do. Landlords often try to control your use of "Store Closing" or "Going-Out-Of Business" signs.My advice to most of my clients is that it is often best to ask for forgiveness than to seek permission ahead of time.(something I learned from my kids).
The effective use of signs can add up to 20% plus in your sales results. Signs are very cost effective - usually a couple hundred dollars will cover signs for both the interior and exterior.
Of course how many, what kind and where they are placed, depends on your particular location. In many communities, there are local sign ordinances that limit what you can do. Landlords often try to control your use of "Store Closing" or "Going-Out-Of Business" signs.My advice to most of my clients is that it is often best to ask for forgiveness than to seek permission ahead of time.(something I learned from my kids).
The effective use of signs can add up to 20% plus in your sales results. Signs are very cost effective - usually a couple hundred dollars will cover signs for both the interior and exterior.