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Start and Run a Retail Business by Jim Dion and Ted Topping is a very different kind of “how to” book. Recognizing that the retail business has fundamentally changed in the past 30 years, Dion and Topping have taken a new approach to their subject.

Rather than resorting to the same old “how to develop a business plan,” the book provides readers with a clear picture of what an owner-operated retail business must look like to survive in the 21st century. For this reason, it is as much a valuable guide for owner-operated retailers now running a business as it is for people who are just starting out.

Ted Topping explains why they took this approach. “While the Main Street of every city and town in North America once boasted a thriving community of owner-operated retailers, many of those businesses are now gone,” he says. “One at a time, they have become another statistic confirming the power of the efficient distribution systems and the huge advertising budgets of the large national retailers.”

In keeping with their entertaining but “real world” approach to retailing, Dion and Topping describe an owner-operated retailer’s job as being somewhat of a juggling act. The seven chapters of their book comprise a practical job description of what their readers actually do:

Jim Dion acknowledges that being an owner-operated retailer requires an incredible amount of skill. “You stand in the store every day, trying to keep all seven of those balls in the air,” he says. “If you have ever seen a professional juggler, you know that keeping just five balls in the air is a huge challenge. This will give you some idea of what you are attempting to do.”

Through their experience as retail workshop leaders, Dion and Topping knew that they needed to do more than just tell an owner-operated retailer “how” to run a profitable retail business. Their book is much stronger because they also take time to explain “why” doing things the way they suggest makes sense.

Reader reviews

I spent a LOT of time looking for a book that would “substitute” for 20 years of retail experience. This book is like having a mentor with that 20 years experience guiding you in all the important concepts and tactical decisions, and providing templates for planning, actions, and checking results. For a “how-to” book, it just does not get any better than this!

I originally obtained this book from the local library and immediately realized that I wanted to own it as a reference. Very good, detailed material about running a retail business. Highly recommended.

For anyone who is looking to delve into the abyss of retail planning & success, this is a proper place to start. The invaluable tips and worksheets provide a good starting point. Also, the authors put a great deal of emphasis on determining whether retail is right for you and the fact that you need to spend at least one year planning. As for me, I am happy to have read this book, and plan on keeping it as a reference guide.

Start and Run a Retail Business paints a clear picture of how a retail business must be organized and managed if it is to thrive... or even survive. This unique approach makes the book as valuable for retailers now running a business as it is for those just starting out. Authors Jim Dion and Ted Topping are available to work as consultants with retailers in the U.S. and Canada on any of the topics in the book:

Chapter 1 - The basics of retail

• Understanding the six rights of retail

– Your profit and loss statement

– Preparing a pro forma profit and loss statement for your new business

• Adding value to the products you sell by adopting a best-service strategy

– Developing a strategic framework

• Developing your unique secret weapon

• Developing a clear vision of your business

• Identifying and studying your three most important direct competitors

• Conveying your strategic message through your store location

• Conveying your strategic message through your store design and layout

• Conveying your strategic message through your advertising

– Your advertising plan

Chapter 2 - Merchandising

• Grouping merchandise into departments and classifications

• Tracking customers’ purchases

• Learning from your customers what they want to buy from you

• Using the retail methodology of accounting

• Monitoring your business using a monthly maintained margin report

• Controlling your business with four key operating ratios

– Turnover

– Stock-to-sales ratio

– Gross margin return on inventory investment (GMROII)

– Sales per square foot

• Using markdowns effectively

– Using promotional markdowns to stimulate your sales

– Using regular markdowns to adjust inventory to market value

• Increasing your credibility by using seasonal markdowns

Chapter 3 - Buying

• Seeing your products through your customers’ eyes

• Building win-win relationships with suppliers

• Understanding that buying terms are often more important than price

• Following eight proven buying guidelines

• Implementing a price-point discipline

• Establishing a credit history

• Striving to reach sell and buy by choosing payment terms

• Calculating an open to buy for every classification, every month

• Forecasting and creating six-month merchandising plans

• Buying with a just-in-time philosophy

Chapter 4 - Personnel

• Demonstrating that people are your most-important asset

• Hiring super sales associates

– Developing a written job description

– Determining duties by priority

– Identifying relevant characteristics and qualifications

– Sales-per-hour and average-transaction objectives

• Creating win-win employment relationships through employee benefits

• Paying your sales associates

• Interviewing effectively

– Following established guidelines

– Five-step interviewing

– Evaluating the candidates

Chapter 5 - Sales management

• Budgeting wages and benefits as a percentage of sales

• Bringing productivity to your store

– Selling cost

– Conversion rate

– Average transaction

– Items per transaction

• Using the apprenticeship method of staff training for all new employees

• Providing guidance and additional training

• Following six steps to become an effective coach

• Using praise

• Adjusting training methods

• Matching goals and incentives to your sales associates’ needs

Chapter 6 – Using computer technology

• Embracing current trends in computer technology

– The computer as a cash register

– Automatic replenishment

– Multimedia

– Executive information systems

– UPC and EDI technology

• Internet retailing

• Budgeting for technology

• Selecting the right integrated package

– Why choose an integrated package?

– Features to look for

• Using technology to keep everything in balance

• Making an informed decision about POS software suppliers

– Questions for potential suppliers

– Questions for retailers

• Top ten reasons for using technology

Chapter 7 - Customer service

• Knowing your customers

• Competing with vending-machine retailers by adding significant value

• Creating top-of-mind awareness

• Providing extra-mile service

• Giving your customers what they want

• Offering a make-it-right refund policy

• Implementing relationship marketing and one-to-one communication

• Identifying your best customers and creating a VIP Club

CREATIVE INSIGHTS INC.

Start and Run a Retail Business

Reader reviews

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