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Tips from Industry Leader Bill Scott

HOW TO TURN YOUR CONVENIENCE STORE INTO MONEY GENERATING MONSTER

Its new program to help igsoa members. We will be posting weekly tips from Bill's most recent and the most comprihensive book on the subject. We are tankful to Bill Scott and his organization allowing us to help the needy people, trying to survice in tough environment.

Tip_1 (April, 2011 week_2)
Itemized Inventory Control in a Convenience Store:

The necessity for better inventory control in convenience store operations is a given. We cannot continue to shove $60,000 worth of inventory in a convenience store and wait till the end of the month to see if it has produced a profit, and we have come to a crossroads given the current environment. We need to know what’s in our stores, how long it will last, and whether or not an item is profitable. We also need to explore frequent price changes to give customers the impression they are receiving a bargain, reduce shrink and expand product lines within the same selling space.

The next question is, “What avenues do we explore?” I see three possible scenarios. That is not to suggest there may not be others:

(1). Follow the Walmart model and develop proprietary, closed-loop systems. This option will require an enormous upfront investment and maintenance expense involving a rather large IT staff and hardware that retailers do not have at this time. It’s not to suggest it’s impossible, but technology and salaries have to get a whole lot cheaper to make it worth the investment.

(2). Follow the 7-Eleven model and hire a third party provider like the service we offer to manage your network and provide the software for you. This option is much more economical than the first one, because the costs can be shared by many thousands of companies. The downside is, it forces you to rely on a third party who controls the cost of the system. Also, the only advantage to the third party is the money you pay them for the subscription service. However, contracts can be negotiated for several years in advance. 7-Eleven recently renewed its contract with HP Enterprise Services until the year 2012. 7-Eleven could have adopted the Walmart model, but obviously they felt the cost savings were worth the risk. We have a customer now who is running in a similar model we created with their help.

(3). Convince your suppliers it's in their best interests to provide these services for you. I may be cutting my own throat, but I have to say that in the end, I believe this to be the best alternative. My reasoning is this: Suppliers would profit equally if such a system were offered and interfaces between suppliers and retailers would be seamless. I spoke with Nabisco two months before they were acquired by Phillip Morris and they indicated they would be amenable to such a relationship, citing their studies showed them if their drivers were to have knowledge of what products to load on their trucks before leaving the warehouse, it would save millions of dollars annually. More recently, I spoke to a representative of a large grocery supplier who told me a study they did two years ago indicated it would increase their sales by twenty-eight percent. I think they only looked at a few amenities in their study because I am certain the figure is at least forty percent or higher.

In conclusion, a supplier who comes up with a good plan to help manage their customer’s inventory on a per item basis would gain an advantage that will be hard to equal, and I predict that someday retailers will choose suppliers according to the services they offer rather than the deals they bring to the table. The benefits would be mutual, with the supplier coming out slightly ahead. It would also be much more economical to implement because suppliers already possess most of the hardware necessary to do it quickly.

(4). Cloud Computing has other amenities too numerous to mention. For example, we were recently able to implement a proprietary card system which collects store sales in real time, checks a customer’s credit before allowing the sale, and instantly charges the customer’s account. It was done quickly and cheaply because the Passport has a card reader as do the pumps and Gilbarco makes the transactions available for us to collect. As new things come along, Cloud Computing will play an even larger role. We will continue to research new possibilities as the market expands. The interesting thing about the knowledge gained from new technologies is they provide you with fresh

new insights you would have never thought about otherwise, but there is no doubt in my mind, Cloud Computing will breathe new life into the Convenience Store Industry and be a major stepping stone for the seventy yearold industry.

I think I was seven years old when the Southland Corporation built the first Pak-A-Sak store in our neighborhood, across the street from our first shopping mall. I still remember the manager’s name that ran it. His name was Mr. Thompson. I wonder what Mr. Thompson would think about convenience stores today. Looking back, I don’t think he would see much has changed. I really think we need to do something about that.

By Bill Scott & James A. Hawkings Ph.D

Tip_2 posted on (April 15, 2011 week_3)

Golden Rules to follow Before
You Start a Small Business
 
1. A Powerful Business Plan
Studies dedicated to small businesses show more start-ups have good results if the operator puts together an excellent business plan. A business plan will express the goal of your business, outline its objectives and framework, and explain the services and products supplied, the target marketplace, the spending budget and also the risks involved.
Consider your business plan like a guide to assist you to remain prepared whilst showing other people the path in which you would like to take the business.
2. A Talented Support Team
You might know every thing there’s to understand about the business you are in – but the final point here is you’re ultimately going to require some support.
Whilst you might not have the ability to hire full-time workers immediately, you’ll most likely need to contract out for management services, legal consultation along with other business requirements. This may be an additional expense; however it permits you to give attention to managing the business whilst leaving work that would tie you up to other individuals.
It might be an intelligent thought to make use of your network of buddies and family members for assist. Just be conscious that mixing company with those you already know privately could be risky to both business as well as your human relationships.
Whenever you do begin to hire workers for your fresh small business. Make certain you pick individuals who’re reliable and supporting. Conduct correct background record checks prior to doing hiring decisions.
3. Capital and Resources
Initial, you need to figure out what resources you currently have readily available to you and what you will have to acquire. Will you need to lease a building, do you or can you previously own enough space? You will require personal computers, office items and some furniture. There might be unique vehicles or equipment needed for your particular kind of business.
Each and every start-up company is also likely to require some cash. If your individual budget cannot help a brand new business, you might need to discover financing somewhere else.
Think about searching for somebody who will invest inside your idea. That individual can play an energetic role inside your business, or they could work as a noiseless partner, accepting a share of the income in return for their primary financial help.
It is also feasible to have a small business bank loan. Go to the Small Business Governing administration web site, http://www.sba.gov/, to discover much more about what’s obtainable.
4. A great Thought
You most likely wouldn’t be thinking about your personal small business in the event you didn’t currently have an incredible idea jumping around inside your brain. But exactly how powerful is your plan?
Discover individuals you believe in and share your ideas on your entrepreneurial hopes and dreams. Be sure you consult with individuals, who’ll say to you the reality bluntly, and not just people who will grant you absolutely nothing but encouragement and praise.
Ask your self “how special is my idea?” Have a view at the levels of competition inside your chosen business. Is it already a reasonably competitive marketplace, or could there be a purpose that nobody has tried everything you plan to perform? Exactly what can you provide that’s unique from the competitors? Be sure you do a lot of market research prior to you get very far.
5. Encounters and Expertise
Hopefully, you have chosen to begin a company in which you currently have some information, proficiency and practical experience.
Basing a small business around some thing you’re excited about is a superb method to ensure you appreciate your work – and finally your daily life. But that might not be sufficient.
You might wish to think about obtaining some additional knowledge prior to a new business begins. Look at taking basic business lessons in the event you lack practical experience in that place. You do not always require a brand new diploma, but studying can only assist you to in the coming time.
6. A Hungry Customer Base
An additional essential aspect to think about prior to you begin a small business is if individuals will require what you are selling. With out a client base that’s hungry for your services or products, your firm will never leave the land.
If you need to have good results, you’ll need to fulfill the requirements of potential clients. What advantages can you provide clients that they cannot discover via your competitors? If you discover a method to solve a typical issue, clients will probably be appear knocking on your front door very quickly.
7. Business Supplies and Checks
Lots of cash changes hands within the business planet, even more so with the expenses of initially beginning a brand new business.
Not only will clients and customers be paying out you, you will also have your personal payments to be charged and staff wages to offer. That means you’re going to need to get business checks.
You can get manual small business checks, that are written out manually, or you can buy laser company checks. Laser checks are created to work with a selection of accounting and economic software applications such as Quicken and QuickBooks.
Very carefully choose the business checks, which will work perfect inside your startup company. Some checks are particularly created to be pay-roll checks, whilst other are designed for accounts payable.
You will discover you can save cash whenever you order company checks on-line rather than via your bank. That is simply because your monetary institution needs to buy checks from the printer and then marks up the cost to create a profit. When you purchase business checks on-line you can remove the middleman.
 

For more information about book purchases, consulting services, speaking engagements, SCM training, Managed Supplier Partnerships, Cloud Computing & convenience store services,
Contact:
Bill Scott
Scott Systems Inc
205 David Sherman Rd
NewHebron, MS 39140
(601) 847-6209
(601) 842-4669
Web Sites: www.CSForum.com, www.StoreReport.com,
www.Scotsystems.com
Email: Bill.StoreReport@Gmail.com

 

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