Purpose

The purpose of this workshop is to equip delegates with a practical understanding of the financial aspects of their business and the environment in which they operate. It will help them to not only undertake a financial health check of their business, but also to identify key operational areas where they can improve the profitability of their business.

Programme Contents

An introduction to remove the myths of financial management

• The balanced business scorecard as a tool to link operational management to financial performance
• Learning from successful retailers
• Why, and how retail businesses fail
• Keeping your finger on the pulse - the importance of good financial control

Analysing financial structure - understanding the balance sheet

• investing in wealth creating assets
• asset utilisation
• accounting for depreciation of fixed assets
• effective stock management
• getting paid and paying our bills on time
• not running out of cash - effective working capital management
• how do we know if we have got enough cash?
• the cash flow implications for the growing business
• shareholders' funds - an owner's perspective
• issued share capital and reserves
• raising money and not borrowing too much

Analysing financial performance - understanding the profit and loss account

• gross and net sales value
• managing variable and fixed costs
• gross profit and gross margin - watching it like a hawk
• difference between margin and mark-up
• pre-tax profit and retained profit
• having enough profit to cover interest payments
• not drawing too heavily on the business
• sales are vanity, profit is sanity - how to avoid being a busy fool!
• the dangers of discounting
• financial performance benchmarks for manufacturers and retailers
• optimising price, volume, and margin for maximum profit
• strategic pricing and adding value
• break even analysis and how to make profit sooner

Methodology

The workshop will use a combination of input sessions and a real retail case study to help validate the learning.

Outcomes

Delegates will be able to demonstrate much better financial control and understanding of their own operation. They will be able to make a clear connection between their day to day operational decisions and how they affect the financial performance of their business. Combined with their existing skills, this workshop will help participants develop into well-rounded and commercially astute retail owner/director /managers.