One of my favorite days at RICS is when we have customers and partners visit the office. For the RICS team, it gives us the opportunity reflect on the progress we’ve made as an organization and, more importantly, the impact we’ve made on our customers. The most recent visit we had was with our partner RMSA Retail Solutions.
If you’re not familiar with RMSA, they are a consulting firm that help retailers look at their data to analyze the opportunities to be more efficient and profitable retailers. They’ve been around for over 60 years and are experts in retail. During their site visit, one of the many trends they shared with us is the importance of planning.
One of the biggest overlooks that RMSA has found is that retailers don’t efficiently manage their inventory. Unfortunately for some retailers, they feel the effects at the end of year especially from Uncle Sam. Because they have excess inventory they don’t sell, they have to pay taxes on it. Those who have a plan are prepared for the additional expense, however those that don’t, get a sick feeling in their stomach during tax time.
On a personal note, I’ve experienced the benefits of planning and sticking to it. I’ve always considered myself fiscally responsible however after reading some books about building wealth, they all recommended to have a budget. Ever since I took their advice and proactively tracked my finances, I instantly gave myself a $200 raise which made my paycheck go a lot farther. If I could receive such a positive effect from my limited budgeting, imagine the impact retailers could have with their larger budgets.
Whether you’re a retailer or not, all of us can be better planners. If you’re trying to make the most of your budget, grow your business, or even mapping your career goals, having a plan gives you a track to follow and helps you focus on your goal.
Take a moment to reflect. What are you trying to achieve? What kind of plan do you have in place to get there?