What are you striving for?

As president of an organization that represents bicycle retailers across North America, daily I wake and do a mental check in, asking myself; what are the leading challenges facing retailers today, what can we bring forward, how can we best support and are we doing enough. ?These are big questions, the same questions that roll around at the start of my day stay with me at the conclusion.

I am thankful that I can surround myself with a core group of retailers, suppliers, advocates, riders, and friends that show up and share. These same people call me out when I make a bad play or miss a shot. On the flipside they also send a note when they see the hard work is helping.

The network that surrounds me, the retailers that show up on our member events, this conversation and feedback fuels the energy and direction for resources we bring forward. It’s in these moments we learn the true challenges and see at the core how we can help.

Reports tell me that business has spiked again, that door swings have increased, but still retailers are heavy on inventory and looking at upcoming cashflow crunch. Payroll percentages are being monitored and many owners find themselves still working long hours. Retailers are working through financial forecasting and determining inventory needs. This is not an easy time; you are not alone.

I cannot stress the importance of making the time, right now, to get more personal with your business than you EVER have. This refers to understanding everything about your business financials that you can. ?Getting a firm grip on how each decision made effects your profitability. Many retailers outsource the bulk of their accounting work. I urge you to prioritize the time now to sit down with your bookkeeper and take a deep dive into your last month P/L, look into fixed expenses, margins and cost of goods sold, units sold, payroll, admin, rent- every single line. Compare this year to last, compare last year to the previous 5, project out 5 years, what does it look like? I promise you will find something that surprises you. Make changes as needed.

If you are not good at financials, or don’t even know what fixed costs means. Don’t worry- you are not alone. I want you to worry if you have decided that you would rather stay in the dark. At this moment in time, this critical point in our industry, those watching the numbers will be most likely to succeed. If you push off this important skill set because it is not fun, or you think your bookkeeper has your best interest in mind and won’t miss anything, you will fall off the back. You need to prioritize this now. We are working on resources to support.

I have been having this conversation with retailers for the past week, here are some takeaways that you may want to investigate:

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·??????Payroll percentage- are you creating a schedule that meets your payroll needs, or because you want to have normal coverage on the floor (note these are different things)

·??????Place your fixed costs on a pie chart- what looks off?

·??????Shop Merchant Fees. Saving 1% can add up. The NBDA works with Chosen Payments.

·??????Add on Sales- outfitting every sale with just a few items more adds $$ to the bottom line. Offering items like extended Service Contracts add revenue without expense

·??????Percentage of sales- seems service is taking a lead and is high margin- how can you maximize profitability? Listen to our latest podcast with George Lee.

·??????Create a simple cashflow plan. Grab an excel, plan 5 months out, list your payables, note your income, where does it put you? Rip the Band-Aid off, stand on the scale, see the numbers so you can make an action plan.

·??????Don’t sell below your cost of doing business. Don’t work with vendors who can’t provide you the margin you need to be profitable. It’s a race to the bottom.

·??????Ask- engage your vendors to help you. It’s getting cold in many parts of the country and its time to welcome the community to continue to make your business a part of their life. Ask supplier Representatives to work with you to host a brand night, introduce a community to an Industry leader, talk bikes, easy yet fun and interesting event. Keep the fire stoked!

Back to that network that surrounds you.

We do.

Your association has your back. Lean on us if you need support. The retailers and suppliers that are part of this organization are some of the warmest humans I have ever meant. Don’t know how to figure out payroll percentage, have no idea what your cost of business doing is- send me a note and let us help. Daily we have retailers asking for help, and we are thankful that they reach out.

My intent is that this provides a great summary of what I am seeing in my role. Bicycle Retail is diverse, shops of all sizes and shapes, in many unique geographical areas. I can report that regardless of if you are a retailer doing 10 million in sales, or 1 million, chances are many of the things you are facing are similar just on a different scale.

I am a firm believer that we can help and inspire each other. I challenge you to organize a team meeting and do the same thing. Ask each person what you think we do well, where could we improve…then ask your customers.?

I have so many things I am striving for. To make a profound impact, to be a great friend, loving mom, future partner, rad human, kick ass athlete, creator. What are you striving for? Not just in the shop or in your role, but full circle. Don’t become stagnate, keep chasing, keep moving forward. Write those goals down on paper, hold yourself and your team accountable.

Total Heather style, nothing heavy here, just a little light reading…?

Ok- go be great!