Did you know what percentage of retailers failed in the year 2017?
68% – Very High! More retailers than you expect. If this is a bad news for you, either you were looking for retailing opportunities to invest on or you’re probably into business being a retailer for some time now. In any event, worrying about your survival in today’s unpredictable market is common and here’s what most of the retailers (who fail) is doing it all wrong.
Firstly, of the many reasons why retail businesses fail, the problem in managing the store efficiently is one, which is completely the retailer’s responsibility. In spite of having proper capital, good sales potential many retailers fail to make much out of their business. While a retail business may have just it’s owner managing his store single-handedly or an utmost bunch of helpers, it is important to effectively manage the day to day issues. Having said so, let us look at the issues causing failure of the retail business:
It can be clearly stated that if the financial transactions such as sales, purchase details of a Business are not well-maintained, it is difficult to get the accurate reports which are crucial for the taxation.
Moreover, under the latest tax law, escaping the tax liability is no joke as there is strong mechanism to trace it. Strictly, every business need accurate financial information to make sound business decisions.
Proper Records = Accurate Report Calculation = Better Decision Making = Business Success
Moreover, Accurate data prevents us from asking the question HOW DID THAT HAPPEN??? And gathering accurate data manually is not an easy job. Even if you miss to consider a single transaction, you may have to start all over again which is truly time-consuming. A solution is to move away from paper pen way of accounting and becoming more digital.
ISSUE #2 Reduce Unnecessary Workload to Work Smarter
Heads up, you’re not just wasting time but errors are bound to happen at several stages of arriving at reports. You might have to rely on your memory/handwritten paper to trace stocks, pending payments.This confuses you to such an extent that your business might have to suffer losses
Furthermore, what’s more damaging is this causes the retailer to focus away from core tasks. As time is money, doing repeated works manual way can cost you your business.
68% believed that manual bookkeeping would be unacceptable in a few years.
Getting onto Digital way of maintaining accounts can help you eliminate this time loss. It helps you do more work rather than doing the regular accounting, billing, reporting. Moreover, tax calculations are done automatically in software programs, minimizing errors and increasing efficiency. This means you can give more time to your business.
ISSUE #3 Avoid Being a Victim of Fraud.
Unfortunately, fraud is something which exists in every industry and may be committed by anyone, including partners, vendors, customers or even employees.
Consequently, inventory fraud is very common which involves the theft of physical inventory items and the misstatement of inventory records on a company’s financial statements. A retailer must ensure the least loss possible from possible frauds.
With digital systems, Retailer can easily keep track inventory through their own smartphones with minimum effort.
ISSUE #4 You Must Learn to be “Instant” To Compete with Big Online Companies.
Challenge 1: How do you reach people?
Consider you manage to advertise sufficient enough to draw attention to your store. The plan works out well and a good amount of customers come into your store, grab discounted products and queues at the billing counter.
Challenge 2: Will you manually calculate the discount on the bills?
Firstly, imagine how impatient customers are. Will they bare with you that long? You might know this, many a time, customers simply walk out of the store buying nothing upon being frustrated of losing time.
A good Business Management Software (like Vyapar) helps you not just to generate/share professional invoices to the customers instantly, but you can also instantly send bulk SMS to huge customer list you have saved all these years. This also acts as a proof hence clients and customers have a complete satisfaction as it is instant as well.
(SIDE NOTE: With this, you retain customers in your locality. You might sell products for a lesser price than what other big online companies or huge stores are ready to offer. Customers would be happy to buy from you only if they are aware of your low prices )
ISSUE #5- Out of Stock Issues Drives Away Customers Forever
For instance, you must have been to a retail outlet and have found that the product you want is out of stock.
How did you feel? Frustrated Right! This is exactly how your customers feel like as well.
When you don’t keep track of your inventory, it’s easy to run out of products—and miss out on sales. Instead of relying on your memory or constantly visiting every product you own, a software that manages inventory could be just what you need.
- By this, you can miss fewer sales: You’ll be able to quickly see what products you’re running low on. Also, you can start comparing your stock level with what’s been selling well and automatically reorder before you run out.
- By this, you can even start investing right: Keeping accurate inventory reports helps. You can quickly identify slow-moving products and reallocate budget to invest in products that sell.
In reality, there are never-ending problems in managing a retail store and then there are software like Vyapar and others built for speed, security and simplicity to help retailers operate their Business efficiently.
- Track sales/purchases/orders/process,
- Store a large list of customers/parties and their details. This helps in track everything in one accessible place
- Get Tax reports automatically without having to work for it, which in turn saves time,
- Digitally generate Instant Professional Invoices,
- Track stocks using our own smartphones,
- Measure product performance from which opportunities can be identified based on what’s selling fast,
- Notify customers of their unpaid invoice to get paid on time with automated reminders.
All in all, these help you make better decisions by planning things better which are essential to grow as a successful retailer. Thus, there is an increasing need to evolve the way Retailers do business.