Mentorship for Success

Seeking mentorship for success can change the way you approach your business. A common refrain of advice I have heard for years is always working “on” your business, not necessarily “in” your business. While this saying holds much truth, it is also somewhat of a luxury that larger retailers enjoy more easily. The reality is that as a retail bike shop slides down the scale of gross revenues, the owner takes on more and more of the actual day to day tasks until eventually, they are more or less merely the primary employee. I believe that many of the issues that the industry sees as relating to a lack of owner engagement may be stemming from only a lack of time, and basic business principles become harder to adhere to when time-crunched. Are we expecting too much of the smaller retailers? If so, how do we, as an industry, enable them to grow into modern retailers? To help keep the industry as a whole, and themselves moving forward?

First, the smaller retailer of the future will need to be speaking to their customers digitally and meeting them where they are, namely online. Ironically the retailers who can least afford financially and from a time standpoint, have the most to lose by not being digitally, and data concentrated. Full POS utilization is an afterthought to large organizations. Still, smaller shops often are off the back when it comes to using, interpreting, and acting on their data if they have even collected any. I do not think this is always the fault of that retailer. They are too busy working in their businesses to be worrying about these things. For those retailers reading this, you most likely are thinking I don’t have time to do all the “things” I am being preached about by my vendors and others. The other folks reading this are about to click away as this seems like basic stuff they have been doing and implemented years ago.

I always enjoyed conversing with my sales reps, and I was often curious about other stores. I tried to ask questions they could answer in ways that would not identify actual retailers but instead speak to the generalities of operations. The most amazing take away I would typically hear was that many retailers were barely utilizing the tools they had right in front of them. The list is long that we could go down, such as ordering from the hip and emotion, not utilizing social media platforms, being behind in payments, etc.

I feel this is one area it behooves us to concentrate on to strengthen our existing dealer base. The NBDA, of course, offers many tools for retailers to use that will help them become better, more refined, and hopefully more profitable. Certain vendors offer educational help on everything, from financial education to mechanical and operational standards and best practices. The disconnect, however, is that while the good stores get better and the great stores become excellent, sadly, the mediocre stores often stay mediocre and struggle. Struggling stores can become a drain on the whole industry through missed payments and lost revenues to vendors and damaged local markets. Emergency cash flow caused discounting or a simple lack of understanding of sound business practices often leads to desperate actions. Everyone has witnessed or heard of markets where all the retailers seem to be racing to the bottom in price wars, which no one will win.

So what can we do? Retailers who are succeeding could introduce themselves to those struggling either outright or through perhaps vendors suggested pairings. Once paired, they could begin a dialogue and offer simple mentorship. Offer them some books to read, suggest they join the NBDA, or just let them know you’d be available for advice, and allow them a peek into what makes your operation successful. Instead of lamenting the struggling stores, let’s all see if we can lift them. If you are struggling, ask one of your salespeople if they know of a successful store that the owner may be willing to offer advice, or reach out to me david@nbda.com and we can chat. As a retail consultant and former retailer, I understand firsthand how isolated you can feel at times. Likewise, if you are struggling and there is a store a town or two away from that you have heard of and admire, pick up the phone and call them. It is very flattering to be asked for advice and having met a fair number of shop owners, by and large, they are very good people. If we could concentrate some attention on the struggling, through simple mentorship, we could perhaps strengthen the industry in one shop. We have many challenges ahead, but also many opportunities. We cannot stop or always predict what will or will not affect us as an industry, but we can still concentrate on being the best we can today while helping others achieve that themselves.

Words by David DeKeyser