The Merchont Mogozine's

Yourself

Do you have reasons for staying in business 10 more years?

Are you over sixty years of age? Do you have a son or someone who can take over in 5 years, or less? Would you stay in business simply to continue employment for your employees? Did you get in this business by choice, or by evolution? Would you rather be doing something else?

Are you ready to put in longer hours? Work harder?

Financial

ls your personal f inancial situation liquid?

Can the company raise additional operating capital quickly?

Do you have a good weekly cash flow?

Location

Do more than 50,000 persons live within a 20-mile radius of your location?

Are you near the center of your shopping area?

ls your facility on a principal street?

Do you have some good buildings less than 10 years old?

Do you have room for additional display space?

Facilities

Can you add lighting and other utilities, if needed?

ls there room for additional parking? Would women find your showrooms attractive?

Do you have "back up"? An assistant who can really take over?

Are you willing and able to let your help make decisions?

Do you believe your help is honest?

Could you take off a week, or two, and know that everything would run smoothly while you were gone?

Competition

How many good hardware stores are in your neighborhood?

Are there one or two good consumeroriented materials dealers nearby? ls there a major discount or franchise dealer in your service area? Where do the people in your neighborhood eo to buv?

Have lou gon6 into your competito/s store to make a purchase recently? To buy something you don't have?

Community

ls there a Thrifty Drug or other major chain drug nearby?

Are most of the residences in the $25r 000 to $45,000 range?

Do your citizens have a good "spendable income"?

ls there a large number of good apartment houses in the area?

ls the industry in the area substantial and varied?

Are you part of a declining downtown shopping area?

Advertising

ls there a local newspaper which cov' ers vour market area well?

Hav6 you advertised from time to time in the past?

REEII tlWT0ll, author of this article, the first a

Employees

Have some of your salesmen been with you less than 5 years?

Do you have managers for your various departments?

Do you have a lighted sign in front?

Are exits and entrances clearly identified?

Does your wife come into the store two or three times a week?

avoid the crime of indecision. The merchant who will be in the most trouble is the one who does not know which way to go and so €loes nowhere and does nothing. Even a wrong decision is many times bettel than making no decision at all. An improper decision can always be reversed or changed.,. but indecision is like an undetected disease.

No one can expect guaranteed answers for these questions, but there are some steps every dealer can take today to help him make the best possible decision at the rieht time.

betermining whether to "Go Consumer" involves five steps:

(l) Getting the facts.

(2) Making THE Decision.

(3) Specific Planning and Budgeting.

(4) Going into Action.

(5) Directing the Operation.

In this article we'll attempt to discover what facts are needed. where the tacts are available, and what to do with them.

Of course. as a management consultant, I believe that major decisions -quch as this should have the assistance and perspective of outside advice from the very bcginning. Rut there ale man)i steps the owner can take for himself, using the tools at his disposal which will aid in better decision-making.

First. have a mcetins with vour t.mplol'ees and tlre principals o[ you, company. Tell them what you are thinking oi and ask for their suggestions, Have someone make notes of what is said. Do not debunk any id,eas proposed,. Keep in mind that older, closely knit organiza. tions have a tendency to throttle new ideas and sup{eestions by years of turndown. When business is good, no one u-ants to rock the boat. \ow. listen to any ideas, no matter how far-fetched. You don't have to adopt it. . but you owe it to yourself to listen.

Next, invite your suppliers and the salesmen who call on you to each come into your inner sanctum {or a lS-minute chat. Tell them what you are considering

Sfory dI s Glqnce

Help in planning your thinking on the decision to go consumer is presented in this article by noted consultant Reed Lawton, and ask for their suggestions. Ask how the competition is doing. Make notes o{ their ideas, but remember that they are prejudiced too. Don't commit to anything. put down in a single notebook all the recommendations without attempting to evaluate.

Then it's time to take a good. hard look at your busint ss operation. How many things do you do just "because that's how we've always done it ?" I)o you have the right products, right prices, right quantities? Do you make a/l thc decisions? Do you havc frcquent financial reports that tell you something? O{ course rve all have accountants to keep clean with the Government. How does your inventory compare with last year ? I-ast month? Does it turn at least twice in a year?

Prepare a good financial statement profit and loss and balance sheet. . and an,qwer the questions in The MERCHANT Magazine's "Do-it-Yourself Check List.o' You may not be able to get this in{ormation for yourself in a reasonable length of time so you may have to ask for out- side help in getting a good survey and analysis of your special market.

An adequate market survey will answer the following questions:

(l) How big is the market in my service area?

(2) What should my share be?

(3) How much am I getting now?

(4) What do my potential customers want to buy?

(5) When do they do this buying?

(6) Where do they buy now?

(7) How is the competition doing?

(B) Would buyers come to my store if they knew of it?

(9)What will I have to do to entice them to my store?

(10) Is it worth it? (Will it be profitable? )

Finally, take your financial statement, your market survey, and a written statement of your preliminary plan to your' banker and sit down with him. You're not there to ask for money or even to make a decision yet, but his advice is worth two-to-one the advice you'll get from anyone else.

Ask your banker this way, "If I were 35 and came in for the first time to borrow money, would you make this loan for this amount, as o{ now?" Add his answer to your collection of facts.

Add your comments of your interview with your banker to your decision-making notebook. Go over all your notes that evening and set it all aside for a couple o{ days.

Now you're ready for the agonizing efiort of makine the ilecision. Next issue we'll evaluate the facts you've gathered and give some rules of thumb that will help vou make your decision.

Deoler Monogemenf Quiz (.|5 or more is possing)

Do you dare take this test and answer honestly?

(l) Do you have one person officially designated manager of

Yes fl No I hardware and consumer products? Yes! No!

( I I ) Do 1'ou know the amount of the average cash sale at your counter ?

(12) Have most of your salesmt'n been with you for less than

(2) Do you have a purchasing agent who buys and controls five years? Yes[ Non all receir"ine of merchandise? Yes[ NoE

(3) Do you have a running inventory of merchandise? Yesn No[]

(a) Do you have a cash register in the store and one out in the yard? Yes I No f]

(5) Do you carry as much as one.fourth of your monthly gross on the books as charge accounts? Yes ! No n

(6) Can you charge interest when the account gets older than 30 days? Yes[ Non

(7) Is all merchandise coded and priced as soon as received? Yes[ Non

(l:l) Did fewer than half your salesmen come from stacking lumber in the yard? Yes fl No fI

(l,X) In the past year has your sales force heard sales presentations from your plywood supplier? Or your paint supplier? Yes[ Non

(15) Do you have an extensive paint department?Yesn Non

(16) Complete with specialist? Yes I No n

(17) Do you have one or more well-trained salesmen who are erpert with hand tools? Y".n NoE

(18) Do women account for more than 2O/o of your cash sales? Y"" ! No fl

(9) Do you have an ucts which have year ?

(I0) Two or three years?

(8) Before being put on the shelves in the storeroom? Yes! Non inventory system which can spot prodbeen on the shelves for more than one Yes[ NoE Yes! Non

(

19) Have you fired a salesman in the past 3 years? Yes[ Nol

(20) Do you regularly spend as much as 3/o of your monthly gross for advertising and promotion? Yes ! No !