The Profit S1 E2: Maarse Florist The physical layout of your business needs to make sense. You need to make it easy for customers to find what they need. "Confusing your customers is an absolute guarantee that you will lose money." They need to be able to see your product; it needs to look appealing; and it should be displayed in an unclutter manner. For example, you want to have clear lines of sight so when the customer comes in, it’s inviting. "If customers can find it, they will buy it." The look of your facility (appearance) matters (i.e., no burned out light bulbs, chipping paint, dust, cobwebs, etc.). "The first impression of a business is the only impression that matters." It should be easy for customers to find an associate/representative of the establishment whenever they are ready or need one, and customers should be greeted within the first five minutes—maximum. Put your most important asset(s) front and center (including the owner). Moreover, it you are the owner, you should build a team around you. You need to have good inventory management. You have to know what you have, how much it cost you, what you're selling it for, and how old it is. If you don't know all of this, how are you supposed to make money? Also, your warehouse needs to be organized. Get rid of excess inventory, make time-saving changes (like a bar-coding system), and organize what remains. For example, you ought to be able to break down each and every thing you make or deliver in terms of its parts/pieces—so you know how the retail price compares to its total cost—including raw materials and labor. You should also know what your sales are per square foot, etc. (Sales per square foot is the average revenue for every foot of sales space, including non-selling space such as your stock room, fitting room, and receiving areas.) Moreover, you need to know which aspects of the business bring in the most money, which generate the least, and which actually lose money. (Sitting on debt inventory will lead to bankruptcy. Get rid of stuff that doesn't sell.) Make sure your people, processes and products are all top quality. Fix the things that your customers repeatedly complain about. Wherever you can cut costs without sacrificing your service, product or image, do it. (Get rid of middlemen, deal in cash when it will help you negotiate down prices, etc.) And you should make it as easy as possible for people to know how to, and then be able to, contact you. "A successful businessperson is the first worker to arrive and the last one to go home."
Some questions probably any business person ought to be able to answer: What are your sales to date? What were your sales during each of the last [five] years? How much was your profit (gross/net)? What is your "landed cost" (the total amount of money it costs to create a product, transport it, and have the customer receive it; including not only shipping and raw materials, but any additional fees such as import duties, shipping insurance and other related costs)? What is your profit margin (retail price as compared to landed cost)? What is your average revenue per customer? How much debt does your company owe? What percent of the company do you own?
IRS Publication 463 (2020), Travel, Gift, and Car Expenses https://www.irs.gov/publications/p463#en_US_2016_publink100033749