Footwear Insight

benefit contracts and administration, and advice on how to terminate employees where you feel there might be an issue. Marketing: I had a local Media Buyer for many years who had his ear to the ground on the local rates for radio and television spots and he also was the middle man for my newspaper contract and some of our coupon publications. e side benefit was that every person calling me to get some of my advertising money was sent to my Media Buyer who ran interference for me. Digital Marketing: Few shoe retailers (or anyone on their staff ) have all the answers when it comes to Social Media, Google Ads, etc. ere are a ton of small local companies who understand this better than many of us and they can be a great help to us. Graphic Arts: e right person who knows how to create a consistent image for your business and regularly lay out a postcard can be very valuable to retailers. Sales Management Training and Development: Many of us retailers have heard or been involved with e Friedman Group. As their website says, "a destined-to-fail retailer once asked, 'What if I train my staff and they leave?'" Harry Friedman's response: "What if you don't train them and they stay?" I think this list above is well understood by many of you and possibly you are already using outsourced talent in those areas. Here are a few more that might be outside of your radar screen: Financial Review: What I am talking about here is getting outside help to review the details and metrics of your financial statements to see how you compare against other similar businesses and to provide insights that promise to assist you in reaping out those extra percentages of profit missing from your business. A review would examine key operating ratios focused at a minimum on these areas: • Sales Increase Rates (or lack thereof) • Freight Costs • Gross Profit Margins • Major Expense Class Review • Merchandising Statistics, including: Markdowns, Turn, GMROI A financial review is accomplished in one of these manners: Trade Association Material: Buying the NSRA's Business Performance Report and reading that material and comparing your business's ratio against the average in that report. Networking: Set up a network of your peers and help each other out by reviewing each other's operation. CPA Review: You ask your CPA to review your financial reports and recommend ways to improve. Business Broker: e "right" experienced business broker can give you an idea of how your stats really stack up. Outsourced Talent: ere are many "old shoe dogs" with lots of expertise in running shoe stores who have the knowledge and expertise to help you do a financial review of your business and are ready, willing and able to serve as your coach to get it moving more profitably. By virtue of being "an old shoe dog," most of them aren't afraid to tell it like they see it and you will probably get the most value (as in "honest feedback") from this group, but (of course), I'm biased. Acquisition Review: Let's face it: We are in a "grow or die" business. Regular escalations in expenses, led by Personnel Expense, requires us to consider expansion by opening new stores or acquiring other operators. Finding a match: While there are a bunch of business for sale sites and business brokers, where you can find listings for shoe stores for sale, the rare one is truly "a find." e best shoe businesses are sold through networking and before you've even heard about it. e next step is if you do find yourself in a situation where you can buy someone else's store and add it onto your little chain (which I believe will help cover your central expense, so it is a good idea), now you have to analyze it. e right outsourced talent would hopefully advise you on this acquisition. Process Elements to a successful Consultancy So, now let's imaging you've decided to outsource some talent and bring that person on to focus on a project for you. Here are other considerations: I would advise you to hire a person who has these skill sets: 1. Experience working as a Consultant 2. Expertise in the project area you are hiring them for 3. Financial Acumen 4. Organized Mindset 5. Highly Developed Verbal and Written Communication Skills I would advise you AGAINST hiring anyone who can't or won't put together a written proposal which explains in sufficient depth the Who, What, When and How components of the project and also includes sections such as these: • Scope of Assignment • Process (steps) • Compensation • Resume Conclusion We're all in this together. Over the years, I've noticed that the shoe industry is one of the most "together" industries imaginable. What I am talking about is how well most of us network with each other, are open for dialogue, reach out for help, are willing to put ourselves forward and accept advice (and sometimes critique) from each other. e evidence exists in just how many people are connected with each other through social media (Linked In, Facebook, Instagram); the numerous posts on the shoe industry on those sites help prove my point. Not every industry can say the same. When good businesspeople seek for and accept advice from other people and there is response, it's a good thing. To those of you who haven't tried reaching out and seeking consultant expertise, you ought to consider it. ere IS expertise out there and some of it is very valuable and can help you take your business to the next level. n Alan Miklofsky is a semi-retired shoe industry veteran and contributor to Footwear Insight. is is his eighth article in Footwear Insight. Aer a 40-year award winning career as a retailer, long-term board member of the NSRA (which included a stint as its Chairperson), Alan is currently a business consultant. Alan is currently a business consultant. Disclaimer: The author of this article is a Business Consultant, therefore the views expressed herein are from a person who makes a living by being employed as "outsourced talent." footwearinsight.com September/October 2023 ~ Footwear Insight • 49

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