By Ron Cooper
Director of Sales and Marketing
Profit Management Promotions
Some warning signs are tough to spot. Others are eminently obvious – such as those of a financial nature. Here’s the third of the Top 3 Warning Signs that a high-impact sales is needed to keep your store afloat … without sinking:
Financial Factors: These are clearly the most obvious. Your credit has been put on hold by your vendors. Your cash flow has slipped so much that you’re tapping your own capital reserves to keep the business going. You’ve pretty much exhausted all opportunities to revive sales. A going-out-of-business sale, of course, may be your only option. But a restructuring-oriented sales promotion can also be used to raise cash and help you regain your financial footing (bring in a pro for what should be a no-obligation analysis of your business).
Certainly, there are other financial-related warning signs. These include dealing with an expected adverse situation (such as a fire or flood) – or a corporate restructuring driven by a partner or family member. Whenever financial pressures mount, sales promotions should be considered not only as the proverbial "last resort," but also as a means of generating a quick cash infusion to forestall your store’s flagging fortunes. (And remember to always have basic business plan in place to guide your strategies and decisions.).
Today’s take-away: Conduct a financial stress-test to size up your situation in terms of fiscal realities. Make the call, objectively, on your strategic options.
About Ron Cooper & Profit Management Promotions: Ron Cooper is director of sales and marketing for Profit Management Promotions – one of the nation’s leading sales promotion firms serving the home furnishings industry. Established in 1985, the company is headquartered in Jamison, Pennsylvania, and maintains regional offices in New York, New Jersey, and North Carolina.
Furniture World is the oldest, continuously published trade publication in the United States. It is published for the benefit of furniture retail executives. Print circulation of 20,000 is directed primarily to furniture retailers in the US and Canada. In 1970, the magazine established and endowed the Bernice Bienenstock Furniture Library (www.furniturelibrary.com) in High Point, NC, now a public foundation containing more than 5,000 books on furniture and design dating from 1620. For more information contact firstname.lastname@example.org.