Business experience of opening a store: all kinds of store business optimization and management deta

Chapter 39 Business Classic Fifteen: Chain Expansion is More Profitable (1)
[-]. Preliminary preparation for chain operation

Why Choose Franchise
You may have opened a shop yourself, no matter whether your shop is a mom-and-pop shop or a shop such as a restaurant or a beauty salon that employs a lot of people, do you always feel powerless?Difficulty in raising funds, a single way of selling goods, and facing strong competitive pressure, does this make you feel depressed?
You may not have business experience, technology and necessary manpower, and you also lack independent entrepreneurial spirit, but the impulse to possess material often makes you willing to take risks and jump into the "business world"?
Did you think of franchising at this time?

You have opened a small shop, and it is very difficult to start a business. Although the shop is small, it has all kinds of department stores, and you are busy with purchasing and selling. You are often busy until late at night. There is not much business, a lot of entertainment, and you worry about it all day long. Why don’t you If you don't change your thinking, join a chain system of a manufacturer or retailer with a good reputation and strong capital, you don't have to worry about everything other than opening and operating.You are still your own boss, you only need to focus on your own sales, and many troubles such as purchasing inventory are taken care of by the head office.Recruitment is carried out by the headquarters in a unified way. You only need to work hard to borrow the momentum of franchising chain stores.Your profits will rise steadily, and getting rich is easy.

If you want to make a fortune, but you suffer from lack of independent entrepreneurial spirit or nowhere to invest money, then opening a franchise store will do what you want.You only need to pay a certain fee to set up a store, and with the help of the franchise granted by the franchisee, use his trademark, product and store name, you will greatly reduce the investment risk, and reduce the individual's independent exploration in the business world. Therefore, if you open a brand-name product store or open a "Goubuli" steamed stuffed bun shop, it will bring you endless opportunities.

What are the forms and characteristics of the chain
In reality, chain stores usually have three forms: formal chain, franchise chain and free chain.

1 regular chain
Formal chains are also called "affiliated stores" and "company chains". According to the definition of the International Chain Store Association, formal chains refer to directly operating more than 11 stores with a single capital.

There are many benefits to this chain format.Because this form makes the ownership and management rights highly concentrated, it can mobilize funds in a unified way, manage strategies in a unified way, and manage personnel, procurement, planning, advertising and other businesses in a unified way. Advantages in terms of loans and purchases. At the same time, only one decision-making unit is responsible for determining the product categories, commodity prices and consistent promotion methods of their respective chain stores, making it easier for consumers to enhance their impression of chain stores.

2 Franchise
Franchise chains are also known as "contract chains" and "contract chains". Or pay franchise fees, royalties and advertising promotion fees to the headquarters according to the store area.

In layman's terms, franchising is selling a brand. The brand itself must have a certain value, and at the same time, you must ensure that your own brand is not smashed. Conversely, if you join a franchise, you must choose a brand with high reputation and good reputation.

The world's most prestigious McDonald's and KFC fast food chains are examples of franchise chains, and many McDonald's stores in Beijing are franchise stores.

3 free chains
Also known as voluntary chain stores, it is the most loosely organized among the three forms of chain stores.The stores that join the chain maintain their independence, and are unified under the guidance and control of the headquarters of the chain store to achieve joint operation, centralized procurement, and unified distribution.

Since the capital of the headquarters and each store is different, the ownership and management rights of each franchise store are relatively independent. Each branch not only has independent accounting, is responsible for its own profits and losses, and has independent personnel arrangements, but also has great autonomy in operating varieties and operating methods.Although the degree of closeness of this kind of chain organization is low, it still has the group advantages of chain organization, and has advantages that individual businessmen do not have in terms of improving economies of scale, developing information system applications, and improving management levels.

How to choose chain form
The three different forms of chains have their own advantages and disadvantages, and because of their different positions, the analysis of the advantages and disadvantages is also different.For example, franchising is a good way for franchise owners to develop and reproduce, and for franchise buyers, it is a ladder to start a business. Which type of chain store is most suitable for you? Every store and every merchant The following factors must be taken into consideration:

The chain headquarters should have the conditions to develop various forms of chain stores. Specifically, if you choose a regular chain store, the headquarters should have a standardized operating system, a product management system, and the ability to develop products with the company's trademark.For example, the Mars department store in the UK has strict operating guidelines and production principles, and its products with the "San Michael" trademark are recognized as brand-name products. It is feasible for such a company to implement a formal chain.

If the store scale is small and the competitiveness is weak, in order to improve competitiveness, you can choose free chains. If many individual stores in China follow this path, they can achieve good economies of scale and compete with state-owned large and medium-sized commercial enterprises.

If you can develop unique products, have unique sales techniques and methods, have certain organizational and management capabilities, have advanced information and logistics systems, and the funds are not very sufficient, then you can choose a franchise chain.

To consider the different characteristics of industries and commodities.Some industries and commodity operations are suitable for formal chains, such as supermarket chains. In this regard, Wal-Man in the United States has done quite well. It has its own branches in almost every town in the United States, and its annual sales rank first in the United States. .Some industries, such as the fast food industry, are more suitable for franchise chains due to their industry characteristics.

At present, my country urgently needs to develop four types of chain stores:
a. Convenience chain stores mainly engaged in grain, oil, food and groceries;
b. Supermarket chain;

c. Large and medium-sized department store chains;
d. Specialty store chains mainly engaged in high-quality goods and brand-name products.

The above four are the most promising for civilian chains and supermarket chains.

What work should be done during the preparation period of the branch

According to the difference in the nature and content of the work, the main work during the preparation period for opening a new store is as follows.The practical skills of these tasks have been introduced in detail in the previous chapters of this book, and this section only lists the table of contents.

1. Clear business policy
Store location.Determine what type of chain the new store belongs to.

customer positioning.Identify key customer groups.

Commercial location.

Competitor positioning.

Product positioning.Including the scope of major categories, product selection, and positioning of main product groups.

service positioning.Design supporting service items and levels.

Price positioning.

Decoration grade positioning.

Sales method positioning.

In the next few years, the supporting development of operation and management will be envisioned.

2. Establish a business plan system
The headquarters is responsible for the medium and long-term plans, so the first-year investment budget and business plan should be prepared during the preparation period.

3. Store decoration
Design and adjust the decoration plan.

Construction and decoration budget and schedule.

Application for approval and construction of hydropower capacity expansion.

Construction and renovation works submitted for approval.

Select construction units and implement on-site operations.

Air conditioning, parking lot, supporting engineering construction of living facilities.

Customized goods racks, counters, display props, refrigeration facilities and other business facilities.

4. Commodity purchase
Collect information about manufacturers and suppliers.

Provide a detailed catalog of commodity operations for review by the headquarters.

Propose delivery time and quantity.

5. Develop a product display plan
Yard layout design.

Commodity classification placement scheme.

[-]. Branch purchasing and inventory management
How to choose the purchasing method for the branch
Each branch adopts the method of joint purchase and distribution, and obtains price concessions through bulk purchases.This method of centralized organization of purchases has many advantages, for example, it is beneficial to unify shipment, arrange and control inventory; it is beneficial to directly establish business contacts with domestic and foreign manufacturers; it is beneficial to save a large number of buyers and their expenses.However, due to the large number and wide distribution of many chain stores, centralized and unified procurement is difficult, so a certain degree of free procurement is required to ensure the flexibility of the branches.The goods purchased from the main store are sent to the store on time by the distribution center, or they can be sent directly by the manufacturer to the branch store or the branch store to pick up the goods.

When purchasing specifically, all branches can be divided into several regions according to geographical location, each region has several branches and a regional head office, and the organization form of chain headquarter centralized procurement combined with regional head office procurement is implemented.Classified purchases can also be carried out according to the origin, quality and brand differences of the products. Locally produced and locally sold products are purchased by each branch, while patented products, famous brand products, and self-owned crystal brand products are still centrally purchased by the headquarters.

How to choose the purchasing channel for the branch
A complete range of goods is the goal of every store, which gives customers more choices,

It can meet the needs of different consumers at various levels of consumption.Therefore, how the chain store chooses and organizes the source of goods is very important for its own survival and development.

There are two sources of goods for chain stores: one is self-owned sources of goods, and the other is external sources of goods.

The channels for external sources of goods generally include manufacturers, wholesalers who provide different services, and general agents and brokers.

Generally speaking, the wider the source of goods, the more beneficial it is for the purchaser, because it helps the purchaser to purchase cheap and high-quality products that are marketable.But the source of goods should not be too scattered, because too scattered will reduce the purchase volume of each channel, and the advantages brought by a large number of purchases will be lost in the procurement negotiation.

When selecting the source of goods, the reputation of the supplier should be considered, whether the supplier is honest, whether the price and quality of the goods provided by the supplier are appropriate and qualified, whether the supplier's supply capacity can meet the procurement requirements, whether the supplier Whether it can provide shipping and storage services, whether it can be settled regularly, whether it can be returned or exchanged, the popularity of the supplier's products must also be considered, and whether he can grant the buyer exclusive distribution rights and many other issues.

How do branches purchase
Chain stores sell a wide variety of products in large quantities, and the selling points of each product change over time.Therefore, it is very important to determine the appropriate purchasing time.

For example, commodities with a large daily sales volume, such as food, need to be purchased in time, once or twice a day; for commodities with a small daily sales volume and slow turnover, the purchase interval is relatively longer.

Another example is that some products are known to be popular in certain seasons, such as summer sandals and T-shirts, winter down jacket tonics, etc., one order should be placed before the peak sales season, and the method of batch delivery during the peak season will ensure seasonal products Have a large supply of goods in the peak season, and keep the minimum inventory or even no inventory in the off-season.

There are many procurement methods, such as point-of-purchase control method, economic batch control method, regular procurement method, and ABC procurement management method. In view of the space, we only introduce a more practical procurement method to our friends——ABC classification procurement management method.

The ABC classification procurement management method is an effective method for value analysis and key control of commodities to optimize procurement.Its basic method:

Firstly, according to the variety and value of commodities, all commodities are divided into three categories according to certain standards: category A, category B and category C. The proportion standards are as follows:

Category A refers to the kind of goods that account for 5% to 10% of the total number of varieties and 70% to 80% of sales.

Category B refers to the type of products that account for 10% to 20% of all product varieties and 10% to 20% of sales.

Category C refers to the kind of goods that account for 70% to 80% of the total number of varieties, but only 5% to 10% of sales.

Then for different classifications, different management methods are adopted.

For category A commodities, based on the determination of inventory control standards, purchase time and purchase batches, the number of purchases should be reduced as much as possible, and it should be handled in batches, that is, one order and batches of deliveries.This can save procurement costs without causing a substantial increase in inventory.As for suppliers who can provide sufficient supply and preferential conditions, you should try to sign long-term purchase contracts with them. In addition to sporadic purchases of Class B commodities, for those that are frequently purchased and can use long-term quotation purchases, they should generally be purchased through chain stores to simplify the purchase procedures, and on the basis of accurate market research, select more suitable ones. Suppliers, sign long-term purchase contracts.As for category C commodities, since it is difficult to set a clear quality standard, manufacturers are also reluctant to supply them directly. Therefore, it is advisable to select several special suppliers on the basis of investigating the supply capacity and product quality. Organize procurement by calling for goods.Here, it is important to fully communicate with the supplier in advance, emphasizing that it is not a one-time transaction, but a long-term transaction.If the price does not vary greatly, in principle, purchase from selected special suppliers.

In practical application, a combination of classification and hierarchical management can also be adopted, that is, the main category A commodities are purchased by the chain headquarters in a unified way, and each branch store is not allowed to purchase privately; while for category C commodities and some category B commodities, they can be decentralized. Purchasing power shall be purchased by each branch itself.However, hierarchical procurement should prevent management loopholes, so as to avoid the penetration of products from competitive brands, poor quality and bad reputation manufacturers, and affect the image of chain stores.

How do branches manage inventory
After the store purchases goods uniformly or purchases goods by itself, some goods are directly stacked on shelves or counters for sale.The remaining parts should have their own turnover warehouse to maintain a reasonable inventory; it can not only ensure that the needs of customers are met, but also prevent the goods from being out of stock and out of stock, and can take inventory at any time, deal with excess inventory, and accelerate capital turnover.

There are usually three methods to maintain a reasonable inventory, namely, quota control method, ABC management method, and capital preservation analysis control method.Let's talk about the quota control method.

In this way, inventory quotas can be formulated and turnover can be controlled.The minimum inventory quota can be determined separately, that is, the safety stock, the maximum inventory quota, that is, the limit inventory; and the average inventory quota can be determined.The calculation method of each quota is as follows:

Minimum inventory quota = (days of purchase in transit + days of sales preparation + days of commodity display + days of insurance maneuvers) average daily sales volume

Maximum inventory quota = (minimum turnover days + purchase interval days) average daily sales

Average inventory quota = (minimum inventory quota + maximum inventory quota) ÷ 2
Acceptance and inventory.In order to strengthen commodity management, ensure the quantity and quality of commodities, maintain the image of chain stores, and reduce the loss of commodities, all links from the entry of commodities into the store to storage and listing must be checked and accepted to clarify economic responsibilities.Acceptance must be timely and accurate.According to the nature and packaging of the goods, different acceptance methods can be adopted, but there must be specific acceptance rules and standards.

When checking and accepting, if it is found that the goods do not meet the quality standards or are expired, the quantity is wrong, or the goods are damaged or deteriorated, they should be rejected or registered.

Inventory is mainly to understand the inventory situation, ensure that the accounts are consistent with the facts, and maintain a reasonable inventory.When each branch store checks and accepts the goods, it must carry out regular or irregular inventory of the inventory, and must truthfully reflect the inventory results on the financial statements, conduct error analysis on the discrepancies between the goods and accounts, and adjust the inventory according to the inventory situation, and purchase goods in time. Other chain stores adjust goods.

[-]. Branch operation

How to establish a unified marketing management system for branches
The Japanese branch has set an example for us in establishing a unified marketing management system.

Kokubu is the largest food wholesale enterprise in Japan with a history of nearly 300 years. In 1978, Kokubun established the Freedom Food Chain Group, which attracted more than 900 small retail stores. In 1981, it established the Freedom Chain Group, which operates the retail business of liquor and daily necessities.

The National Branch fully investigated and studied the difficulties and requirements in the operation of each branch; and based on this, established the RS system, the so-called "retail support" system, to perform the functions of operating guidance for each branch; the function of product planning; the function of negotiation and suggestion; the function of logistics control function; information processing function.It has also made outstanding performance in establishing unified marketing management, which is mainly reflected in the following aspects:

Based on factors such as the operating capacity, geographical location, customer composition, and sales channels of each branch, the country branch company formulates a clear management policy.

Make sales plans for commodity varieties, quantities and grades.

On the basis of scientifically predicting future sales indicators, determine new or reduced varieties, in order to meet customer requirements as much as possible under the premise of relatively stable operating varieties.

According to the performance and best-selling degree of the products and the shopping psychology of the customers, they are responsible for the product display and shelf layout in a unified manner, and even make unified regulations on the display types and display quantities of each floor.

The headquarters uses the computer information system to analyze the situation of each franchise store in a timely manner, and proposes suggestions for adjusting the sales plan at any time.

(End of this chapter)