The media is having a field day reporting about whether Sales were up or down and using that to determine who "won" or "lost". The problem is that the media are not looking at the whole picture.
Sales are only one number among many that tell the true story of a business. You also have to look at critical numbers like:
- Inventory Levels
- Profit Margins
- Cash Flow
- Net Profits
- Happy Customers (had to throw that one in, too:-)
My father taught me years ago that it is virtually impossible to get all those numbers to look good at the same time. But if you can get 4 or 5 of the 6 numbers going in the right direction each year, you're doing well.
So how did you do?
At Toy House and Baby Too I was able to...
- Cut Expenses
- Lower Inventory Levels
- Raise Profit Margins
- Increase Cash Flow
- Raise Net Profit
- Keep Our Customers Smiling
Over the next couple weeks, I'm going to explore how we improved 5 of our 6 critical numbers so that you can learn from our example and apply it to your business. Some of the steps to take are so incredibly easy, you'll kick yourself for not having done them already (I kicked myself at least three times this year.)