By Stanley Nakano
Special to The SUN
Small seasonal retailers can earn 50 percent or more of total annual sales between the months of May and September. The business choices made during these critical months can directly affect a small firm’s cash flow for the entire year.
The Small Business Administration has compiled the following list of the top six hurdles small retailers face during the busy summer months.
1. Lack of inventory control. Inventory control is crucial for all small retailers, especially during the busy summer sales months. It is important to remember that inventory equals profit and knowing how much product to order, when to order it and what items to order can make the difference between having cash in the bank or aging inventory on the shelves.
2. Hiring the wrong employees for critical positions. There is a cost to hiring the wrong people for key positions. Small firms tend to have less layers of management between the owner and the employees; therefore, new hires must be able to perform with less direct supervision and be motivated to get the job done right the first time. Avoid this issue by writing a detailed job description, and training new employees on how you want them to represent your business.