Creating a business plan for your shop

Making a well-crafted business plan can be rewarding and valuable. It provides clarity, direction, and a framework for moving forward.

Cost-Effective Planning Approaches

DIY vs Professional Business Plans

You can choose between crafting it yourself (DIY) or enlisting a professional. Both strategies offer distinct advantages and costs.

The DIY approach is cost-effective and typically free. It allows for intimate knowledge of your business and flexibility in timing and content. Many Australian banks offer free templates, which are familiar to the bank if you're seeking funding. A good one is available here, which is extensive and presentable.

Generally, it will take you about a week to work a few hours a day. It's one of those things that is easy on the third attempt, so count on mucking a few up in your first attempt. It should take a few hours a day over a few days. Remember, perfection isn't the goal; having something is better than having nothing.

If you prefer a professional business plan, writing typically costs around $6,000. You can expect a month-long timeline for completion. The process requires significant input from you to help writers understand your business model. While more expensive, this option provides high-level industry expertise. One plus is that it's perfect if you need a business plan for a bank or investors.

Draft the plan and present it to the professional for refinement to streamline the professional process and save time and money.

The closer the purpose aligns with securing funding, the more likely I find that the plan will be professionally designed and written.

Implementation and Monitoring

Your plan should include a section on budgeting for the upcoming year. Using your accountant's profit and loss statement is a good way to do this. I find the best approach is to take last year's figures, adjust them for the current year, and create a budget.

Once you've created your initial business plan, updating it in subsequent years becomes much more manageable. Typically, in my experience, only about 20% of the content changes annually, making it a manageable task.

The Power of Planning: Success Rates and ROI

“By failing to prepare, you are preparing to fail.” – Benjamin Franklin.

Don't overthink.

The goal is not perfection but a clear, actionable plan to guide your business towards success in the coming financial year and beyond.

Have you ever found yourself shivering in the cold weather, wishing you'd bought that cosy jumper you have at home? Or perhaps you are hot and want a cool drink? These weather-induced moments of need aren't just everyday inconveniences—they're untapped goldmines for savvy retailers. Just look at the recent cold spell that swept across Australia, now sending sales of winter gear soaring.

A research paper here done on the weather stated

"Analyzing daily sales at a national apparel and sporting goods brand’s stores reveals that weather effects on store sales are surprisingly persistent, even after accounting for shoppers simply changing when and where they make their purchases. Moreover, sales at stores that have more experience with adverse weather events have a lower response, suggesting that adaptation may reduce the negative impact of increasingly severe weather on sales."

As someone who has analysed sales data for many retail clients, I've seen firsthand how changes in temperature and rain can affect product sales. It is not rocket science. Different weather conditions change what people buy. This is a chart I made based on data from one of our users. 

This stacked bar chart showed the sales performance of different product categories (Drinks, Clothing, Accessories, and Indoor Items) across three weather conditions (Hot, Cold, and Rainy Days). The y-axis represents sales volume, while the x-axis shows the different weather conditions.

Key insights from this chart:

Drinks have the highest sales on hot days, as expected.
Clothing sales peak on cold days, likely due to increased demand for warm clothing.
Accessories like umbrellas showed the highest sales on rainy days.
Indoor items see increased sales on both cold and rainy days, possibly because people spend more time indoors during these conditions.

This chart effectively illustrates how different product categories perform across various weather conditions, allowing users to quickly identify trends and patterns in weather-based sales.

Hot Days, Cool Profits

When the mercury soars:

• Cold drinks sell
• Sunscreen sells

Chilly Weather, Warm Sales

As soon as it gets nippy:

• Hot drinks sell
• Jumpers and beanies become must-haves
• Heaters become essential purchases

Rainy Day Retail

When the rain comes down:

• Umbrellas sell
• Raincoats become good sellers
• Indoor activity items like books and board games see increased interest

This weather-driven consumer behaviour is critical to understanding and predicting your sales patterns.

Turning Weather Data into Retail Gold

So, how can you use this info to boost your sales? It's all about being prepared and using your point of sale (POS) software to your advantage for weather-based inventory management and retail sales forecasting.

Dig into Your Data

This is where our POS software for weather trends shines, as your POS system is a goldmine of information for retail data analysis. Here's how to tap into it:

Go to Register Reports

Now select "Top N Stock Sales for a Given Period.

Put in a date of a hot day and see what you get. Do a few. Now put in a cold day and so on.

Do this also for cold and rainy days—you'll start seeing patterns emerge. 

These are products that sell in your shop in those days. 

Stock Smart, Sell More

Once you've got your data, use it for weather-responsive merchandising:

Make categories for stock that sell well according to the day's weather, e.g., start with hot, cold, and wet.  Get the appropriate signs.

If a day in the morning is forecasted to be such a day, these signs and products will be placed in a prominent position in the shop. 

Communicating Weather Strategies to Staff

Your team plays a crucial role in implementing your weather-based strategy. Here's how to get them on board:

1. Hold regular briefings on upcoming weather and corresponding product focuses
2. Train staff to understand the connection between weather and sales trends
3. Encourage staff to provide feedback on customer behaviour during different weather conditions
4. Create simple checklists for weather-based display changes

FAQs: Weather and Retail

Q: How quickly do weather changes affect sales?
A: Impact can be almost immediate, especially for impulse buys like umbrellas or cold drinks.

Q: How far in advance should you plan for weather-related changes?
A: Today's seven-day forecasts are generally fairly accurate. 

So I would suggest that you check the 7-day forecast each week in your area and note any abnormal hot, cold, or rainy days coming up.

The Bottom Line

While Mother Nature may be unpredictable, your retail strategy should not be. Make sure you have the right approach and tech tools, to take advantage of the weather to make sales. Your POS system isn't just a glorified cash register—it can be a predictor of your customer behaviour. With some planning and the right tech, you can ensure your sales forecast is always sunny, no matter what's happening outside.

Have you noticed the weather affecting your sales? I'd love to hear your experiences! Comment below or reach out if you need help setting up your POS system to weather any storm.

Stay savvy, and may your sales be ever in your favour!

Today, a successful retailer needs to have your finger on your sales and inventory instantly; for example, sometimes you need these figures instantly, e.g. how much money is in the till NOW, what departments are NOW selling, are items being scanned NOW, etc. 

Our point-of-sale (POS) software makes it easy and quick to see what's happening in your business now. Let us get into it.

Real-time reporting

Your POS system allows you to instantly analyze your sales data to see what's selling now. Here's how:

> Look for the "Sales Analysis" button on your cash register. It's usually on the second page towards the bottom.

> You'll see a screen with plenty of analysis and figures. As I am interested in today's sales analysis, so I press the button marked with the orange arrow (see below)

Experimenting with these filters lets you instantly see what products or departments are hot sellers today.

It is worth experimenting to work out what is happening. These are Actionable data.

And this is just the beginning.

Once you have done that, check out the other buttons. These give you other types of critical information.

This gives you a massive database of instant reporting information that provides insights into your shop situation.  Try it.

Dive Deep into Key Performance Indicators

In addition to sales data, your POS reporting provides more critical inventory-level KPIs metrics, employee performance, and more.

> View reports on stock levels, bestselling items, and employee sales totals.

> These figures help you identify what's working so you can do more of it. They also reveal problem areas you can improve.

Make Data-Driven Decisions

With the powerful reporting tools built into your POS system, you have the insights you need to make intelligent, data-driven decision-making for your business instantly.

Start using your POS reporting to gain real-time insights into your business. With your finger on the performance pulse, you can flexibly respond and make changes that drive growth.