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Cleanliness is next to godliness

Is a lack of organization costing you money?

While the title of the article may have first been said by Charles Wesley, credited as the founder of the Methodist Church, perhaps the phrase should be adapted to our stores by saying, “cleanliness is next to profitability”.

We learned a valuable, and expensive lesson, as we were going through our warehouse. Our receiving process included writing the date received on a case. Imagine our surprise, and disappointment with ourselves, as we found a case that had been receive eight months earlier still sitting on a warehouse shelf. There had been many times we reordered this product while this case sat on a shelf.

We then mapped our warehouse and set a schedule of checking every aisle and shelf. This was an easy lesson to determine what this lack of organization had cost us. Perhaps you have had the experience of an invoice arriving and you find no evidence of the merchandise arriving. Yet, you find what you think is the merchandise on the sales floor.

Some needs for organization can be seen by simply looking at checkouts, receiving areas and office desks. Most are not so evident. Lack of organization is a tremendous time, and sometimes money, consumer.

We offer a solution that we found to be most helpful in our business. Past the suggestion of cleaning a desk, warehouse, salesfloor or checkout, we created a guide that helped everyone in our business to perform any task. We began by having everyone make a note of any occasion when they experienced something that consumed their efforts and time. During our bi-weekly staff meeting each person shared the challenges they had experienced.

With someone acting as our recording secretary, there was a discussion as to what could be done to prevent this from happening again. Because of the group discussion, the solutions came from many perspectives and with a variety of plans of attack. The notes taken were transcribed into one of two types of documents.

One document was referred to as a policy and the other was a procedure. The procedure was an outline of how to perform a specific task. The outline could be for unloading a truck and what to do with the accompanying paperwork. The procedure could be how to handle the paperwork in a transaction at the register. As an example, dollars going into a register were placed in a specific manner in the drawer along with a specification of the minimum amount of bills and coin to be kept in the drawer.

The policies created were the rules created for ourselves, such as cell phone usage and what was worn to work. As examples of procedures, ladders were not to be kept in the aisles and excessive merchandise was stocked overhead in a specific manner or returned to the warehouse. Cartons were not to be left in any aisle. Maintenance and cleanup of the sales floor, warehouse, and checkout area was also written.
Because the entire staff participated in the creation of a policy or procedure, there was a lot of “buy-in” by everyone with what had been built.

Of course, the cleanliness aspect also transcends to the areas generally reserved for managers and owners. From observation of multiple businesses, we have found that if there are policies and procedures for the staff that are not applicable to managers and owners, the entire effort begins to dissolve.

We called this creation, “the owner’s manual”. Definitely one of your best efforts for having a store and staff that understands the value of time and money.

 

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This article is copyrighted by Tom Shay and Profits Plus Solutions, who can be reached at: PO Box 128, Dardanelle, AR. 72834. Phone 727-823-7205. It may be printed for an individual to read, but not duplicated or distributed without expressed written consent of the copyright owner.

 

 

 

MAY 2024
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Small Business

AdvisorieS

The May Small Business Advisory is titled "Planning for a successful accountant" and is appropriate for many with the April 15 tax deadline having passed.

 

Did you work with your accountant? Or, did you just give them a bunch of papers and wait to receive a completed tax return?

 

Successfully working with an accountant requires a partnership. This month's Small Business Advisory gives suggestions of how to make this happen in 2024.

Small Business

News

Top Story

We see that many small business owners have too much of a focus on the "top line" of their income statement.

 

Increasing revenue is great, but it is not a cure all for any challenges your business is facing. And sometimes, incresing revenue can create a challenge.

Article of the Month

Who is your customer? Some small businesses have no focus. Their customer is whoever calls or walks in the door.

 

And some small businesses have determined which customers, in sufficient numbers, they should spend their efforts to attract.

 

The article of the month shares an old Southern rhyming couplet about business; "The bertter you niche, the more you get rich."


Book of the Month

Lean Startup by Eric Reis is our suggested book for May.

 

As the title suggests, the reader of the book would be someone that is starting their business. However, we see more value than just that.

 

Perhaps you have been in business for many years. We think this book could give insight to items, and methods, that a small business owner should think about with their business today.

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

The May Small Business Advisory is titled "Planning for a successful accountant" and is appropriate for many with the April 15 tax deadline having passed.

 

Did you work with your accountant? Or, did you just give them a bunch of papers and wait to receive a completed tax return?

 

Successfully working with an accountant requires a partnership. This month's Small Business Advisory gives suggestions of how to make this happen in 2024.

Small Business

News

 

Top Story

We see that many small business owners have too much of a focus on the "top line" of their income statement.

 

Increasing revenue is great, but it is not a cure all for any challenges your business is facing. And sometimes, incresing revenue can create a challenge.


Article of the Month

Who is your customer? Some small businesses have no focus. Their customer is whoever calls or walks in the door.

 

And some small businesses have determined which customers, in sufficient numbers, they should spend their efforts to attract.

 

The article of the month shares an old Southern rhyming couplet about business; "The bertter you niche, the more you get rich."


Book of the Month

Lean Startup by Eric Reis is our suggested book for May.

 

As the title suggests, the reader of the book would be someone that is starting their business. However, we see more value than just that.

 

Perhaps you have been in business for many years. We think this book could give insight to items, and methods, that a small business owner should think about with their business today.