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With over 25 years of frontline experience Tom Shay is America's leading small business management expert. He's a "Must Have" for your next event.

"Open to Buy" explanation and calculator from Profits Plus

During many of Tom Shay's presentations, the question about an "Open to Buy" is frequently asked. Because this is a topic unto itself, we have added two areas of information to assist you in understanding, creating, and utilizing an "Open to Buy". The first is an article about an Open to Buy. You can see and print this article by clicking on this Open to Buy.

The second item we have added is an Open to Buy template which has been created using Microsoft Excel. To fully utilize this FREE tool, you will need a spread sheet program (Excel, Lotus, or other similar program). The template you are going to download, does have example numbers to indicate how it works. Be sure to remove the example numbers before using the template. Click template to download the file. While we have created a unique business tool that we believe to be accurate, you should also utilize a calculator to verify the correctness of this information.

Click here, Open to buy, to see the PowerPoint, presentation notes, and free audio track for this important topic.

To complete the form, read this information and follow the instructions.

1
. The template has been write protected so that the formulas are not destroyed.

2.
The fourth column has an P or C in it. This letter refers to that particular row of information. The P indicates you should enter information and the C indicates that row is protected. The first column has an P/C which means you need to enter the number for the first month, but not for the following months.

3.
The first information you should enter is the inventory on hand on the first day of business of the first month of your open to buy chart.

4. The next row of information you should complete is your anticipated sales for each of the months. This row is highlighted with yellow.

5. Your anticipated gross margin for each of the months should then be entered. This row is also highlighted with yellow.

6. The next row of information you will complete will be the "Desired Inventory - End of Month". Again you do this for each of the months.

7. A second reminder that you need to remove the amount of dollars listed as purchase orders. Each purchase order has a space where you can input your purchase order number and who the purchase order is written to. Then enter the amount of the purchase order in the appropriate row.

8. As you change your gross margin, and write purchase orders, you will find the bottom row will change to reflect your open to buy. And as you change the anticipated sales to actual sales, you will find the open to buy to change to reflect the actual sales.

Enjoy this free tool to assist you in operating your business, and get your profits plus!

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Tom Shay
PO Box 128
Dardanelle, AR 72834

(727)823-7205

FEBRUARY 2025
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Small Business

AdvisorieS

Hopefully there are few small businesses that are operating with handwritten documents. Whether you have a point of sale (POS) system; Curstomer relationship management (CRM) system; or anything digital that helps you better operate your business, there remains a question.

 

Are you using everything that you bought? That is the focus of the February Small Business Advisory.

Small Business

NewS

Top Story

As small business ownerss we are sure to disagree on many aspects of business management and ownership. However there are two items that I will always insist on.

 

The first item for you as manager and owner of a business, you must inderstand financial information. You cannot leave it to an accountant.

 

The second item is you have to invest in educating your staff regarding their responsibilities within your business.

Article of the Month

Most every small business has inventory. It may be inventory used as a part of your services. It may be inventory for items used in your business. The article of the month shares ideas of how you should control the inventory. This is important because you do not want to run out of the necessary inventory, and you do not want too much of your money sitting in more inventory than you need.


Book of the Month

You cannot beat your competition unless you know what they are doing. The February book of the month is, The Everything Store, written by Brad Stone and Jeff Bezos.

BOOK US

With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.

Small Business

Advisories

Hopefully there are few small businesses that are operating with handwritten documents. Whether you have a point of sale (POS) system; Curstomer relationship management (CRM) system; or anything digital that helps you better operate your business, there remains a question.

 

Are you using everything that you bought? That is the focus of the February Small Business Advisory.

Small Business

News

 

Top Story

As small business ownerss we are sure to disagree on many aspects of business management and ownership. However there are two items that I will always insist on.

 

The first item for you as manager and owner of a business, you must inderstand financial information. You cannot leave it to an accountant. The second item is you have to invest in educating your staff regarding their responsibilities within your business.


Article of the Month

Most every small business has inventory. It may be inventory used as a part of your services. It may be inventory for items used in your business. The article of the month shares ideas of how you should control the inventory. This is important because you do not want to run out of the necessary inventory, and you do not want too much of your money sitting in more inventory than you need.


Book of the Month

You cannot beat your competition unless you know what they are doing. The February book of the month is, The Everything Store, written by Brad Stone and Jeff Bezos.