P2 Consult – Is It For You?
The NBDA has a program called P2 Consult, is it for you? As I recently transitioned from 28 years of bicycle retail, I kept having a powerful feeling that there were retailers just like myself that were good at some things but not everything, when it came to running their business. I had been successful and had often been annoyed by reports that running a bicycle retail store was an impossible way to make a living at anything other than a meager income. I knew this was wrong, and that bicycle retail could provide a high income, but you had to understand the fundamental financial truths that go along with running any business.
Most retailers started with a strong desire to be in the bicycle industry due to a love of cycling and the great feeling of being in the bike shop. When I began my upward path from mechanic to sales, then management, I felt that I was building on a skill set. When it came time for my wife and me to open our store, we felt very confident in the skills we would bring to the business. Many retailers think they are doing their best work as a mechanic, or a salesperson, perhaps even by being the local go-fast racer type. If you are not as good or better at the financial side of your business as you are at the mechanical, sales, or actual bicycle riding part, you will not be nearly as profitable as you could be.
As we opened our business, I immediately began to realize one skill I had not honed was the financial side. Thankfully my recently retired Dad stepped in to give us a large hand with our bookwork. After a few years and a ton of learning, I took over the reins of the back end of our business entirely. At first, I was not real happy about the instant change in my time available to work on bikes and help customers. The almost instantaneous effect, however, was my mind began to see the business VERY differently. As I walked through the shop, inventory flashed dollars signs invisible to all but me. Employees fiddling with their phones had time clocks clicking away pennies each second in cartoon bubbles above their heads, and they were my pennies! Vendor programs became dreaded reading as I watched margins drop a point or two each season unless more floor space and dollars were promised to go their way. Doing payroll, paying taxes, paying bills, etc. made it feel like all we did was like other people’s and businesses’ pockets. Expenses for many businesses equal or outweigh income. It is a simple fact, and everyone can think of the companies that have closed or retailers who seem to do great on the surface. Still, their expenses are crushing their profits one month’s lease, cool shop van payment, or overinflated payroll period.
So, that brings us to P2 Consult. This is a program I lobbied the president of the NBDA, Brandee Lepak, to let me run with. The NBDA has a great peer to peer group called the P2 Program, which “is made up of non-competing dealers who meet to learn, compare, network, examine and analyze specific data from their business to help and support each other in business operation and strategy.” You owe it to yourself to look into the P2 group if you have any curiosity. The overwhelming feedback I have heard is incredibly positive, and it has given many retailers a significant boost in their businesses and confidence. P2 consult is different in that it is one Program to help you understand your business better, at your speed, and can be used on an as-needed basis for only $120 per hour.
Who should consider P2 consult? 
- Anyone who does not have a firm grasp of their business key performance indicators and how to read their profit and loss statements and balance sheets. These are the keys to understanding your business’s health, much like a doctor checking your heart rate, blood pressure, and fundamental analysis of your blood to get a baseline for your health.
- Anyone who wonders if their vendor relationships are as profitable as possible could be and discuss ways to increase margins.
- Anyone who wants to open a new store, or explore what routes you may have available for closing or selling your store.
- Anyone who would like a confidential assessment of issues you may be experiencing in your business. These could range from anything such as employee retention or pay points to only needing to know if what you are experiencing is normal. It is really hard sometimes as a retailer to find someone who can help you that isn’t a vendor or family member or friend who may have biases or motives that could cloud their advice. Simple solutions can often be overshadowed by issues that have become unrealistically large or been put into a negative feedback loop for too long. A set of impartial eyes is often a great way to break through the barriers that have been erected mentally.
The best part of this Program, is the ease of getting going, affordability, and your ability to use the service as little or as much as you like. I believe that any retailer that learns how to assess their business’s health by demystifying the financial side of their business will begin to make better decisions that ultimately lead to increased profits. The keys to profitability are quite simple if you know how to understand the numbers, maintain your margins, and work within the learnable parameters. I would love to help you become more profitable by improving your business knowledge or helping you work through issues you may be experiencing in any facet of your business.
Links: P2 Consult
Cost Of Doing Business Studies – Required reading!
Podcast – How to Run a Profitable Bike Shop w/ David DeKeyser
Words by David DeKeyser
David DeKeyser and his wife Rebecca Cleveland owned and operated The Bike Hub in De Pere, Wisconsin, for nearly 18 years. In 2018, they sold the business and real estate to another retailer based in a nearby community. David now writes the Positive Spin series on Bicycle Retailer and Industry News and he writes articles for the NBDA’s blog, Outspokin’. David also provides business consulting through the NBDA’s P2 Consult Program.
The NBDA has been here since 1946, representing and empowering specialty bicycle dealers in the United States through education, communications, research, advocacy, member discount programs, and promotional opportunities. As shops are facing never-before-seen circumstances, these resources offer a lifeline. Together, we will weather this. We at the NBDA will not waver in our commitment to serving our members even during this challenging time—but we need your support.
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