Like most Pro’s, David Fulcher, PGA Professional at Edgbaston Golf Club, and owner of David Fulcher Golf, had never managed a pro shop before he became Head Pro. “I had limited experience of running a retail business, so, before taking the leap, I did my homework and quickly realised I needed a plan for my sales, a plan for my stock for the year ahead, and even a plan for the next five years.”, says David.
Around 80% of pro shops do not create an annual sales budget, so David’s story is unusual. And, when asked, many Pro’s don’t appreciate why it’s so important.
“We are now into our third year of our business plan. We’ve grown our turnover 2.5 times and significantly increased our gross profits”, continues David, “A plan for sales and stock is vital: you can’t do business without it”.
Shop Focus for Sharp Profits
It’s natural to focus on what you know, and the part of the business you’re most comfortable with, such as sales, or golf lessons. But this approach can lead to you spending less time in the shop; investing less; and making less money.
Getting to grips with simple sales figures, such as what you’re selling every month, will get you thinking. A good EPOS system will tell you what you need to know. Compare your current figures to the same time last year and use it as a benchmark to make better buying decisions.
We've created two budget templates, designed specifically for your retail business.
- If you're a XPOS user, DOWNLOAD THIS TEMPLATE.
- If you aren't a customer of ours' yet, DOWNLOAD THIS VERSION INSTEAD.
Both contain live calculations, so all you need to do is replace the sample figures with your own. You can also add categories if we've missed any out, or hide them if they don't apply to your business. The sheets even work out your Stock Turn for you.
Dean Vannet is Head PGA Pro and Director of Golf at Banchory Golf Club. Dean has financial responsibility for both the club and the pro shop. He says, “Years ago, I would have said I was trained in golf, greeting and dealing with members, taking lessons, et cetera. I wasn’t adept at running a shop, or budgeting. We used to buy in what we thought we’d need, and take a punt that it would sell. But with new technology now, there’s great information at our fingertips and we have the chance to run great businesses”.
Dean insists data is critical, “As a Pro, you’re busy dealing with customers and giving lessons, so it’s easy to lose track. But getting into a habit of looking at your sales sheets each week, will pay dividends. I always look back at the winners and losers. I use my EPOS system to look at the sales by month, and I then break it down by products and suppliers.”.
It’s a myth that putting a budget together is stressful. In fact, it’s meant to help you to manage your business, and take some of the stress away. Keep it simple at first. Just look at what you do every month, how much you make, and aim to make 5% more than the previous month.
Keep it simple at first. Just look at what you do every month, how much you make, and aim to make 5% more than the previous month.
It can be as simple as that and could revolutionise your business.