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4 Key Areas for Sound Fiscal Management |  November 29, 2017 (0 comments)

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Omaha, NE--Most independent jewelry store owners are wearing many hats.  Most are functioning as head of HR, vendor relationships, client development, advertising and marketing; additionally, some may be operating as head of sales or design.  Chief Financial Officer is a role that can sometimes take a back seat--or seem overwhelming with so many accounts and financial statements to manage. Managing these many roles is a matter of prioritizing your efforts, and streamlining whatever tasks are possible.  When looking at your financial statements, there are four key areas to focus on:

Inventory: Inventory is a working asset, that generates almost all the store revenues.  Inventory management is critical to the success of the store.  Questions to ask when evaluating inventory include:

Debt:

Profits: Most business owners focus on total revenues and net profits.  Questions a business owner should ask:

Cash Flow: This is the biggest challenge for most business owners.  An expanding business may require more cash than a company can generate to support growing working capital needs.  Cash flow can be a better measurement of a company’s financial health than net profits. 

By managing these four key financial areas, an owner will be able to quickly assess the health and direction of their company, then have time to get back to managing HR, vendor relations, advertising and marketing and all the other responsibilities of a busy jewelry store owner.

The Edge Retail Academy is a highly effective jewelry industry consulting company that provides customized strategies for retailers and vendors to increase profits, optimize growth, reduce debt, create profitable inventory solutions, build effective teams and enhance brand loyalty and profitability. The Academy is committed to helping jewelry businesses improve their bottom line while reducing uncertainty and stress. Edge Retail Academy software and the unique talent pool of their business advisors provide real world knowledge and advice for guaranteed results, all on a “no-contract” basis. www.edgeretailacademy.com. If you are in need of advice on time management, leadership, or any other strategies to make these things happen in your store or if you would like more assistance to help ensure your finances are in the healthiest shape for 2018, please contact us to help, through our Business Academy. Call (877) 569-8657, Ext. 1, or email Becka Johnson Kibby, Becka@EdgeRetailAcademy.com 

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