Retail Business Assessment / Maryland SBDC

Complete the form below for a review of your food service business. If a statement is not applicable, or you don't understand it, leave (N/A) checked. Your total will be adjusted accordingly.

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The Basics

Your business is making money

You are paying your bills on time - especially invoices with discounts

Your vendors and suppliers are shipping you with terms

You are current with your taxes, permits, and licenses

Your business is trending up overall since you opened

Your business is trending up compared to last year

Finance

You reconcile your checking accounts

You are producing regular, consistently formatted statements

You operate with a rolling cash flow 12-18 months out

Your receivables are current

Shrinkage (bad debt, interal and external loss) is less than 2% of gross revenue

There is a sales plan in place

Your lease is competitive

Your payroll is an acceptable percentage of sales

A basic ratio analysis corresponds favorably to industry benchmarks

Operations

You match packing slips with purchase orders with invoices and check quality of goods

Your system allows for orderly register 'closings' at C.O.B.

You make bank deposits daily

You keep UPS or postage records for mailed merchandise

You have policies for damaged or spoiled supplies received from vendors

You record weather on your daily business summary report

You anticipate business needs and work loads based on weather predictions and/or seasonal variations

You periodically 'drop-in' on your day off to see if your management is as good as it should be when you are not there

Inventory

There is adequate inventory to support the sales plan

Inventory turns maximize investment dollars

You follow a purchase plan or open-to-buy

You 'know' your inventory including all backstock

Markdowns are done in a timely and well-promoted fashion

You take advantage of manufacturer's stock programs and special order capabilities

You inquire if certain vendors will hold key items specifically for you in their stock

You are continously looking for new merchandise that would add daily to your marginal sales team even if the margins are a bit lower than you would like

Merchandise

Merchandise is clean

Merchandise is well displayed, grouped, and accessible

Lighting is adequate (or even enhancing)

Merchandise is priced, well marked, and/or clearly signed

The store looks full and 'ready for business'

Merchandise is maintained throughout the day

You re-merchandised on a regular schedule

Physical Location

The front/entrance of your location is clean and in good condition

Windows are clean

All light bulbs are working and interior is well lit

Window displays and signage are effective and in order

Windows are changed on a regular schedule

The floor is clean

Signage is effecitve and informative

The music is appropriate

The shop opens daily 'ready for business' regardless of your presence

Personnel

Staff is stable and turnover manageable

Employees clearly understand performance standards and friendly customer service

Operational policy and procedures are clearly stated

Employee discounts or purchase program are clearly defined

Employees have an understanding of product knowledge, selling techniques, and use of downtime

Training is provided

Employees are properly groomed and attired

The compensation system incentivizes behavior

All behavior receives appropriate feedback, redirection, or reinforcement

You solicit and listen to employees' ideas and suggestions

Customer Service

You can describe your customer in detail in two or three sentences

Merchandising policy, promotional, marketing, or replacement decisions are made from a customer service perspective

Your customers are greeted when they enter your shop

Your employees answer the phone in a prescribed manner

Customers are thanked when they spend money with you

You have had your store 'secret shopped'

Marketing

You have identified the most effective means of communicating with your customer

You capture customer information for mailing or direct contact

You contact customers on a regular basis

You have a marketing plan and a budget

Competition

You patronize the competition

You are familiar with competitors' marketing, pricing, and policy practices

You are beating the competition

You consider having 'loss leaders' that are readily reorderable and might enhance customer loyalty

You understand where else a customer might spend the dollars that would be spent in your shop

Loss Prevention and Safety

Shop and register keys are in management's possession at all times

Customer entry chimes or bell works

Stockroom and office doors are closed and secure

Rear entrances are locked

You conduct regular inventory plus 'spot check' inventory on costly goods

Emergency numbers are clearly posted in front and rear of shop

Fire extinguisher and first aid kit are in good order

Exits clear, exit signs and emergency lights are working

Dressing rooms and bathrooms are monitored by staff

Technology

You employ a computerized Point of Sale system that provides effective data and control

IT integrates to accounting and inventory systems

IT captures customer information

You have a website

You have done a 'Technology Assessment' to determine appropriate technology applications and cost/benefit for your business

Retail Business Assessment