In the retail sector, inventory is considered one of the main financial assets. However, according to a study by HSR, specialized in market research, less than 40% of retailers invest in inventory management systems. The importance of adopting efficient management and process automation has proven to be essential solutions to minimize errors, optimize resources, and avoid financial losses.
“Effective management is fundamental for the growth and stability of a company. Investing time in recognizing and correcting common errors can optimize services and facilitate day-to-day operations, avoiding unpleasant surprises and even ensuring more opportunities for business”, says William Santos, commercial director of VarejOnline, a company specialized in technology for store, franchise, and point of sale (POS) management.
VarejOnline serves networks like Grupo L’occitane, Decor Colors, Petland, among other major operations; experience in the segment allows William to bring insights on the subject. The specialist highlights some simple actions that can transform your retail reality and prevent financial problems. Check it out:
1. Daily cash control
Many franchisees neglect daily cash control, which can lead to discrepancies and significant losses in the medium and long term. William emphasizes the need to record all transactions, from large sales to smaller expenses, including in-person and e-commerce sales.
“Disorganized cash flow can snowball. Setting aside time every day to focus on this management is essential. To make it easier, the solution is to implement a cash recording system and ensure it is followed and constantly updated,” he explains.
2. Separate personal finances from business finances
It is common for some retailers to mix personal finances with business, especially when dealing with multiple points of sale. William warns that this practice can obscure the real view of unit performance and create serious tax and cash flow problems. The solution is to establish separate bank accounts for the company and personal use, ensuring clear separation.
3. Ensure the anticipation of seasonal expenses
Seasonal expenses, such as quarterly taxes, license renewals, and restocking inventory for holidays, often catch franchisees off guard. Without planning, these expenses cause squeezes that could be avoided. William recommends creating a detailed payment calendar that considers these seasonal expenses and helps reserve funds properly.
4. Value financial data analysis
Regularly analyzing the company’s budget data can help franchisees identify patterns, trends, and areas for improvement. Therefore, keep track up to date and monitor closely.
“It is important to dedicate time to the periodic review of reports and seek insights to optimize franchise financial management. Today, management systems, the famous ERPs, can present the main data to retailers, or even connect with APIs to customize operations according to each business’s needs,” explains the expert.
5. Invest in training and financial education
Just having management tools is not enough if you do not know how to use them, or even understand the subject. William encourages owners to constantly seek out courses, workshops, and resources that help improve their financial skills and those of their team.
“Knowledge is a powerful tool. Some ERP companies even include employee training when offering the solution. This makes management smarter and reduces business vulnerability,” he concludes.
