Your Retail Business May be a Hobby? Take this Test to See if You Should Be in Retail at All
How Good A Retailer Are You
Test yourself by circling the choice to each topic that best matches you:
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10 Question Test Helps You Figure Out if Retail May Have Been the Wrong Choice for You
1. How much do you pay yourself?:
1. I don't pay myself
2. Less than $50,000 per year
3. $50,000 - $75,000 per year
4. $75,000 - $100,000 per year
5. $100,000 - $125,000 per year
6. Over $125,000
2. After you pay yourself, how much profit does your store make?:
1. I don't know
2. Less than 3% of sales
3. 3 - 5% of sales
4. 5 - 7.5% of sales
5. 7.5 - 10% of sales
6. Over 10% of sales
3. My business plan for 2013 projects:
1. I don't have a business plan
2. Lower sales than 2012
3. The same sales as 2012
4. A modest increase in sales over 2012
5. A 10% - 20% increase in sales over 2012
6. More than a 20% increase in sales over 2012
4. My business plan for 2013 projects:
1. I don't have a business plan
2. A loss for 2013
3. Break even for 2013
4. A modest increase in profit over 2012
5. A 10% - 20% increase in profit over 2012
6. More than a 20% increase in profit over 2012
5. My marketing plan for 2013 includes:
1. I don't have a marketing plan for 2013
2. Most $$ allocated for print yellow pages and mailers/ads
3. Less than 2% of sales for marketing effort
4. 2 - 5% of sales for marketing effort
5. 2 - 5% of sales for marketing with at least 50% for internet
6. Over 5% of sales for marketing and substantial effort with internet media
6. Internet Media I Currently Use to Good Effect:
1. Not really sure what I am doing on internet or what is effective
2. We have a website, Google Places, and Facebook. I think they are effective
3. We have all in #3 send out some emails and have active events calendar
4. We are very active on the internet with frequent updates and we send out monthly emails.
5. We have over 1000 names in our email data base, mine our website for more emails, send out at least one email per month, provide events, and are always looking for new online media.
6. We have all items in #5 and we are using YouTube, blogging, and other social media to good effect.
7. Regarding our sales force:
1. Our sale people are solid clerks who sell, too.
2. We have at least one outstanding sales person in our shop
3. We consider hiring salespeople a critical part of our business
4. We have a standard training program for our sales professionals
5. We track sales performance and provide commissions or bonuses
6. We do everything in 3, 4, 5, and have ongoing training
8. Reputation - If you did a random survey of your those visiting your store, they would say:
1. Okay experience. Some would be happy, others not so much.
2. Most would give you a C or B, but some would give you D or F
3. Depends on which employee deals with them. Overall C + or 3 stars out of 5
4. Some would say excellent with B average or 4 stars
5. Most would say excellent for 4.5 stars
6. Rare customer complaints. Almost all would rate us A or 5 stars
9. How do you feel about your retail experience as an owner?:
1. I'd do something else in a minute if I could do so profitably
2. I'm okay with this, but not thrilled
3. I like retail well enough, but the money is not worth the effort
4. Everything is pretty good, but I often wonder if this was the right choice for me
5. I like what I do most of the time and am very satisfied with the shop and the income.
6. I am thrilled to go to work, love the job, the people, the impact I'm making on the lives of others, and the money meets or exceeds my needs.
10. In order to continually educate myself in the best practices for my shop:
1. I don't or only seldom proactively work at self improvement or education
2. I get all I need from the sales reps who call on me
3. I read trade magazines, use online resource, listen to tapes, or read books
4. I attend trade show seminars or other industry supported seminars, webinars, and read industry specific magazines or books
5. I do many of the above, plus I seek outside 3rd party analysis from my accountant, banker, business consultant, business group, Mastermind group, or marketing consultant
6. I do all of the above and am constantly looking for ways to become best in class
Scoring:
Now, look back at the numbers you've circled or checked. Add up the total points.
10 - 15 points. Why are you doing this to yourself, your staff, and your customers?
15 - 25 points. You may have some potential depending on your answer to numbers 9 and 10. But you might consider looking for a new job.
25 - 35 points. Pretty close to a toss up here. Consider reading the first 60 pages of one of my books, Principles of Bicycle Retailing for the Internet Age or the first 100 pages of Running a 21st Century Small Business. It may help you decide if you should bail out or get serious.
35 - 45 points. Depending on how long you've been in business, you have some great potential. Would doubling your income motivate you to success? You could do that with the right attitude and some help.
45 - 50 points. You are successful already. You can do more if you want to. But maybe your very happy at this level. Only you can know.
50 - 55 points. Congratulations. Please send me an email as an open letter to those who have scored less than 45 points. If you agree, please tell them it has nothing to do with brain power, but will power.
55-60 points. Wow! Some of you who scored this high made an error some where. Some of you are lying. For those who have scored at these levels for real, my hat is off to you, and I'd like to interview you for the my next book.
Be sure to leave your comments below. Is the test fair? Did you learn anything about yourself that might cause you to change direction? If you liked the test, be sure and +1 it or Like it so others can take it.
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