Plan Your Store Budget
Store budgeting is not as simple as pitting your expenditures against your revenues on a spreadsheet. That might work for small mom & pop shops, but that’s not how it works for chain stores. Budgeting is often more complex than that.
Your store budgeting initiatives are multi-level. Chances are, you have multiple stores in several locations. You also have a tiered corporate structure. Some of your basic business expenses affect your profit margin but are not necessarily negotiable. For instance, you may have a cleaning service that comes in and takes out your trash each night. That’s a fixed cost for you that has nothing to do with your merchandise.
That’s just one example.
You have other expenses too. The key to store budgeting is to drill down to the store level and figure the costs against the revenues for each store. Corporate support of those stores may or may not be factored in depending on how your accounting practices are structured.
The primary factors in store budgeting, however, are your key performance indicators. You’ll be much more effective if you establish KPI targets.
With ChainDrive, you get maximum visibility at several layers of management – all the way down to each store’s assistant manager. And when you budget correctly, you’ll have a better view of each store’s profitability.