A well known, national chain of restaurants discovered that certain weather patterns substantially impacts their business. They have studied it and found that more people go out to eat dinner when there is a series of beautiful days. So they measure the weather quality at their stores across the country. Managers report the weather quality daily. A weather predicting system is then employed to determine the quality of subsequent days. When the model predicts a higher customer count they reduce or eliminate sale items and include higher priced or higher margin specials on the changing daily menu. While they can't control the weather, they know that their customers respond to it. Knowing that, they work to take advantage of factors that can predict changes in business activity.
Many businesses have sales fluctuations based on the weather but few companies include weather-predicting metrics into their staffing and inventory planning. They just take weather fluctuations and volume fluctuations as "acts of God." But imagine if your business sold car batteries and you could increase inventory just before it turned ten degrees below zero. You would be able to lower or eliminate the number of lost sales because of being sold out of the most popular models. You would be able to schedule more people to work those busy days so customers would be serviced quickly and efficiently. You would do more business because your competitors would be sold out or have long waiting times. You would also be able to turn your inventory more efficiently for a greater ROI (Return On Investment).
Your business might not fluctuate by the whims or patterns of the weather, but I'm sure it does fluctuate by some factors that you do not have control over. Study various patterns and factors. Become aware of them, measure them, chart them, and understand the dynamics. Use those factors to predict busier or slower sales periods and adjust inventory, staff size, prices, and margins accordingly.
Larry Galler coaches and consults with high-performance executives, professionals, and small businesses since 1993. He is the writer of the long-running (every Sunday since November 2001) business column, "Front Lines with Larry Galler" Sign up for his free newsletter at http://www.larrygaller.com
Airbnb cleaning service Glenview ..Business owners and entrepreneurs are, by nature, risk takers and... Read More
Succession planning requires the owner of a small or medium-sized... Read More
When looking at Akron carefully one cannot help but notice... Read More
The first task before hiring a contractor for home remodeling... Read More
Anyone who has been watching the Idaho Market Carefully for... Read More
Would you like to jumpstart your online or offline business... Read More
You might be thinking to yourself, "Why should I waste... Read More
Where would your business be without a proper plan? A... Read More
Franchised companies often require what some believe to be excessive... Read More
1. Attempt Succession Planning Without Other Strategic Plans. Succession plans... Read More
This will make some people angry as hell, but it's... Read More
Strategic alliances are increasing at a rapid rate. It is... Read More
If you've ever listened to Warren Buffett talk about investing,... Read More
We all agree Strategic Planning is a critical part of... Read More
By cranking up others development to meet your business needs,... Read More
I've either been involved with or held a process-related role... Read More
Can you imagine going on a road trip without knowing... Read More
Please take a moment before you read any further and... Read More
Too much goal setting and strategic planning can leave you... Read More
Does your overall business strategy include the recruitment of college... Read More
All investors greatly desire and are motivated by a clear... Read More
American Eagle Outfitters and Wet Seal Stores have issued statements... Read More
A focus group is a group of employees or current... Read More
In today's rapidly changing and highly competitive markets, many privately... Read More
If you are in the parking business and own or... Read More
efficient cleaning crew Highland Park ..Many companies are reluctant to dive into outsourcing ocean because... Read More
All investors greatly desire and are motivated by a clear... Read More
Many movies have been made about the tragic story of... Read More
Many very successful business owners may never have had a... Read More
Why do so many companies languish and watch as their... Read More
Growing your own small business can be one of the... Read More
Microsoft Great Plains fits horizontal markets clientele and in case... Read More
If you are a successful franchise of a large franchise... Read More
Imagine spending the same amount of money on marketing and... Read More
Business seems to drop, slow or even stop during the... Read More
Is your business growing as fast and effectively as it... Read More
"Did you hear what your competitor is doing?" This question... Read More
In 1997, David Steele was making the transition from a... Read More
Here's a really simple way to make sure your plans... Read More
Would you like to jumpstart your online or offline business... Read More
As a business owner, you've likely created a hurricane plan... Read More
Want to become more strategic? Add these traits to your... Read More
It's easy to lose sight of what needs to be... Read More
If you own a mobile franchise business and wish to... Read More
The current state of the available technology at the disposal... Read More
Many business start-up kits or consultants will tell you one... Read More
The first step in starting a restaurant is proper planning.... Read More
The goal of almost every business owner is to generate... Read More
I'm not talking about posting the HBO schedule on your... Read More
Fun From The StartFor those with the will to start... Read More
Strategic Planning |