OK so here is a little story about how you can grow from operating one unit to 2, 3 or more if you follow these important steps. Whether it’s a retail store, restaurant or even a service-based business with a van on the road serving customers where they live and work, you are within an arm’s reach of your goals. What’s more important, you can do this with success, efficiency and increasing net income equal to, or higher, than your first unit.
Let’s think about that for one minute. Increasing net income. Yes. Increase in net income. It is not only feasible, it is the goal.
Why wouldn’t it be at a better net income?
You already have a successful model. You have grown and developed a solid customer and client base. You have demand from other areas. You think you’re ready to expand you just need to do it the right way.
Whether you are opening a second location or adding another person on the road, you need to make sure the team will do what you do, now.
Here are some of the most critical things you should consider first.
1) Document what works.
2) Document what doesn’t work, or could be better.
3) Make a plan.
Here are some of the questions you should answer:
- How do you collect revenues from your customers and clients?
- Do you collect cash?
- Do you allow them to pay by check, wait for an invoice or do they have to give you a credit card when you complete your service or deliver the product?
- What are the rules for a refund?
- When is it ok to discount?
With all of these questions on policies, and more, you will want to duplicate what you’re doing now relatively easily, while planning ahead for what can go wrong.
With today’s advents in technology – yes, we know, “technology” it’s all the rage – but it is true, and it is absolutely essential to your growth in more operating units. Using the right technology will make it not only easier, it will make it more likely that you and your team will be able to accomplish your goal of increasing net income with each new unit you add.
If you haven’t yet, you need to implement technology and add the tools that will help you manage the business no matter where you are. Take the time now to implement:
Electronic alerts – a text message, email or an app pop up on your home screen – that tells you what is happening right now.
- Maybe it is a large sale. Cha-ching! (You might want to check in and congratulate your new manager on a job well done and keep them motivated to do it again.)
- Maybe it is more volume than normal. (You might want to send additional people fro another location to help.)
- Maybe it is a refund processed for $2000! (You might want to call and find out why and see if you can correct that problem.)
Of course if you were the person issuing the refund, you would have been fully aware of the circumstances. You told the customer if they weren’t satisfied they could bring it back knowing you could put it back into inventory sell it. However, if this is a scenario where it’s happening at your second location, you may or may not know all of those specific details. Which means, you are going to have to rely on not just company policies and procedures, but controls to ensure that your staff is following those guidelines.
With the right technology you can put those controls into place and be more confident.
Being able to manage two, three or more business operations through a management dashboard, finely tuned reporting, consistency in processing transactions, and the right security protocols are the simple ways to allow technology to make it easier, efficient and effective to manage your growing business.
In addition, these tools allow for streamlined accounting and bookkeeping processes that will give you the latitude to maintain a separate Chart of Accounts* for each operating unit. This allows you to evaluate income, expenses and review the Profit and Loss for each additional location. Even if you have it all roll up into one corporate entity, you can more easily evaluate which store or team is making more money, hitting their goals and adding more net income to the bottom line.
While some of the suggestions mentioned here can easily be done as part of the basic TransAct platforms, some more complicated processes may require new software or equipment. We can help you to evaluate what is necessary and what will help you not only grow, but grow faster and smarter. With the 21st Century technology we have available today, we can help you grow through the right technology in payment processing for all of your TransActions in 2020 and beyond.
We are here to help, a free, 20-minute consultation is all it takes. Let us know when you are ready to grow.
- *Be sure to review this with your CPA – they can help!