cite other small businesses as their biggest competition

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1 Improving Operations: Tips for Retailers Retail is the third largest small business segment in Canada and plays a major role in our economy. Covering a broad range of goods and services, retailers in this country face a unique and sometimes difficult array of challenges to their success. Recently, the Corporate Executive Board, an organization devoted to providing business insights, released a report titled Small Business Pain Points by Industry, Part II: Construction, Retail, and Other Services. It found that: 62% of small retail owners say they feel seriously threatened by large businesses, because these competitors have more leeway to offer major discounts to customers and because many big box retailers are opening smaller stores to directly compete with smaller, independent businesses 33% cite other small businesses as their biggest competition 30% say they are suffering because the holiday shopping season is becoming less reliably lucrative 43% of Canadian small retailers cite loss prevention and inventory management as the most difficult parts of running their businesses These are major challenges. However, a few key changes in how you run your business can lead to big rewards. Improving both day-to-day and long-term productivity, building a more effective and more easily managed inventory management plan, and efficiently bolstering security and monitoring procedures may all contribute to making your business more competitive and profitable.

2 Improving productivity Productivity both on the floor and in the back office is key to retail success, especially for small businesses. Effective use of space, resources, merchandise and time are necessary for operational effectiveness. As a small business owner, you may be used to out of necessity doing almost everything yourself. But in an increasingly competitive market, every step to improve productivity can make the difference between prosperity and struggle. Sharing the burden of responsibility can make you and your business more effective. Think about: Sharing some of your responsibilities with a store manager or senior team member. A trusted ally who understands the ins and outs of your everyday business needs can take on some operational work so you can plan for seasonal or future growth, run sales campaigns, etc. Better monitoring and managing store touch points. Stocking high-traffic areas with quality merchandise and improving sightlines between employees and customers can increase sales and productivity, as well as reduce the risks of theft. Upgrading business equipment. Whether your daily work relies on inventory monitoring or security systems, invest in the best, most reliable solutions available. Short-term expenditure can contribute to long-term efficiency. Additionally in the Small Business Pain Points by Industry, Part II: Construction, Retail, and Other Services Report, the Corporate Executive Board shows that because of operational inefficiencies, small retailers currently spend only 35% of their time making sales and building customer relationships. Instead of building their base, small business owners are: 37% Filing taxes and performing other administrative tasks 32% Engaged in some part of the hiring and training processes 23% Opening and closing shop or monitoring security-related activities (activities that are necessary but should take up significantly less time in the day) Hiring the right people to manage the floor can, at least in part, help relieve some of the burdens on small business owners. Taking the time to bring qualified, committed team members into the company fold will improve operational efficiency through better performance and greater employee satisfaction, which will reduce turnover. Hiring the right people can also contribute significantly to reducing inventory shrinkage by employee theft.

3 Improving inventory management Two key facts highlight the close relationship between hiring decisions and inventory loss: 87% of Canada s small and medium-sized retailers have been victimized by retail crime in the last year (according to an Ipsos Reid poll conducted on behalf of Retail Council of Canada and the Royal Bank of Canada (RBC)) Most retail theft is committed by employees, rather than someone external Employees can defraud a small business in any number of ways: Through direct theft or by helping others do so. Much of employee-based inventory shrinkage may also occur through simple mistakes and unclear processes another aspect of inefficient operations, in other words. To address both these issues, you should consider: Creating official policies clearly identifying system processes, defining acceptable behaviours and outlining consequences for breaches Developing a simple team orientation program that clearly explains company policies and procedures, including how they, their friends and family purchase goods from the business Adopting an effective inventory control system that records losses in real time Recognizing and rewarding team loyalty and productivity Reducing shrinkage means dealing effectively with customers attempting to steal so make sure team members are trained in basic security measures and in dealing with generally difficult customers. To begin, consider: Ensuring only you and one or two trusted team members have after-hours access to the business Making it clear to potential thieves that it s not worth their while to steal from your business: Use clear signage indicating that you have strong security systems in place Place your empty cash register in a window to show you don t keep cash on hand after closing Electronically tag all merchandise Installing electronic door chimes to let staff know when customers enter and leave the premises Keeping doors and windows locked after dark and when employees are working outside regular business hours Pre-programming emergency contact numbers, including 911, into business and staff phones Installing security bars, screens, grills, or roller shutters on windows and skylights, as well as using strong padlocks on exterior doors or doors to stockrooms Making sure shelves aren t so high that staff can t see over them Consult the Retail Business Security Self Assessment report co-authored by the Retail Council of Canada and RBC, for more tips on basic security measures and training. Canada s Health and Safety legislation guarantees employee rights to work in a safe environment. This means that you, as the business owner, are obliged to provide and maintain a safe environment for them. Taking the time to streamline operations, hire the right employees and provide ongoing training in upholding your policies and procedures is key.

4 Monitoring for customer and employee safety To streamline store operations, reduce shrinkage and maintain customer and employee safety, you may also want to consider installing a security monitoring system. Being able to keep an eye on things, both during and outside business hours, just makes good business sense. A monitored security alarm system can act as a deterrent, which will increase employee and customer safety, as well as help authorities apprehend suspects if theft or other security events occur. Just as importantly, a good security monitoring system won t be time-consuming. On the contrary, it can play an important part in improving overall operational efficiency and could even reduce insurance costs.

5 Rogers Smart Business Monitoring One of the biggest barriers small retailers face when considering a security system is cost and how to balance that against effectiveness, including how much time is required to manage such a system. Rogers Smart Business Monitoring helps make running your retail business easier, reduce shrinkage, and improves safety, even when you re not there. We offer: Custom security and monitoring systems. One of our trained security professionals can provide a free consultation on what kind of security solution will best meet your business requirements. Remote system control. Arm and disarm your system using your smartphone and give employees building admittance without giving them your access code. Additional control features. Rogers can also help you choose hardware add-ons such as motion detectors, water leak sensors, and lighting and small appliance control. Livestream monitoring. Instant emergency alerts. Keep an eye on your business premises no matter where you are using your smartphone, tablet or computer. You and the authorities receive instant notifications of break-ins, fire, the existence of carbon monoxide or water leak, and any other threats to your retail location. Reliable connectivity. Dual networks tied to our cable or broadband and wireless networks keep your business, including security and monitoring systems, up and running. Making significant operational changes don't need to be expensive or complicated. LET US HELP Visit our website or call to speak to a Small Business Specialist. Want to learn more about what to expect when setting up Rogers Smart Business Monitoring? We ve created this guide to give you an overview. Read it now