Training

MOVING FORWARD

As we work through this recession and look forward to better times, here are some of my Helena Cotter’s top tips for staying ahead

Leasehold premises Landlords are usually flexible during a recession, so don’t shy away from negotiating or renegotiating terms of your lease.

Better for them to have you there than not, and as we know, bridal retailers run clean and quiet businesses so the prospect of you leaving to go somewhere more economical would not be advantageous to your landlord.

It wouldn’t be in their best interest to have empty premises, which could be hard to let during a recession, so I am sure they’ll be happy to oblige.

Negotiate purchasing and payment terms with your suppliers.

Enquire whether you are able to negotiate more generous payment terms, be they 30 days, 60 days, etc. If you are able to achieve this, it benefits suppliers as well as you. The easier they can make it for you, the more potentially you’ll be able to spend with them. It’s a win win.

Suppliers Take a calm approach and take your time. Focus on what you ideally would like the outcome to be prior to your approach, and with whom. A good place to start is with the companies whose products you spend the most money on. Start the process in a prompt manner to avoid panicking and feeling desperate and rushed at the last minute, and make sure all the details of any arrangement are lined up and running before you really need them. It is true that the relationship you have with suppliers is one of balance. Each of you need each other. Bridal designers and manufacturers, I know, will always do their best for you and can often offer flexibility in these uncertain times.

When you take on a new supplier, it is prudent to set payment arrangements as part of negotiations, together with prices and lead times. As with everything today, negotiation is an acceptable part of business, rather than just accepting terms. You can, I am sure, reach a mutual positive compromise together.

Diversify Have you thought about diversifying your revenue a little? There are many add ons you can offer which are available in the bridal world. You could do this via an online shop – exclusive deals, VIB club etc, alongside offering some items for sale in your boutique.

This will help increase revenue in the short-term and, of course, grow your customer base in the longterm. Spotting gaps in the bridal market is a fantastic way of beating a downturn in business. As self- employed people, I know you are all entrepreneurs and are fantastic at adapting and managing change.

Whether going through a recession or not, it is advisable to continually assess the performance of your stock and make the necessary culls/tweaks in order to add more profitable gowns/products down the line.

If you continue to buy only what you sell, you will be missing on a lot of opportunities which could help you through difficult times and on into future good times.

A key point here is to avoid build up of old stock. Working on the shop floor, one can become tired of seeing the same dresses day in, day out. And so can your brides; rails of dresses marked sale can put them off.

Moving dresses around your shop rails will help keep stock fresh looking; and window displays should be changed regularly, too. How many times have brides asked you if a dress is new when all you have done is move it?!

By selling off dresses which lurk (we’ve all had them) or are not working for you fairly sharpish, you can free up cash to help buy new dresses.

Aim for gowns/products which

perform well and give you the best returns.

Consider having a flash sale to help declutter in terms of dresses which are not selling well for you. This will help with cash flow.

Remember to always focus on what you are best at. Don’t dilute too much your successful business model by trying to be everything to everyone. Never stray from your core values and your reasons for opening your business.

Protecting your brand During a recession, it is important to remember that you are not losing customers, but rather that they may choose to spend less.

It is vital to continually give the best shopping experience in terms of customer care and service, and the best gowns/products.

You work very hard to be at the top of your game, so try not to cut corners in your presentation and appointments as it will only damage your reputation for being the best in your area.

This means any corners that need to be cut should not be at the cost of your customers’ buying experience, your standing in the industry or to your brides and their guests.

Keep in contact with your potential customers via social media. Let them know you are there and cannot wait to help them.

If you can demonstrate you are with your customers and are there for them, helping them work through this recession or rough patch, they won’t forget it. They will always associate you, your team and your business with a positive feeling.

Your team Keep your staff in the loop in terms of any changes to how you are going to run your business. They are at the coalface, so to speak. Show them they are valued and included in this journey. Bridal retail is all about people. Protecting your hardworking staff is a must generally, but, especially during a recession.

High staff turnover is not ideal and can be as a result of a lack of training. This is a professional selling job which requires specific skills, so ensure you invest in developing your team with help from outside. This should be ongoing.

Bridal retail has changed dramatically over the past five years, therefore it’s important to not only maintain 21st-century selling standards, but to have everyone singing from the same hymn sheet and staying several steps ahead of any competition. Cash flow By increasing your profits and being very careful about spending, you can improve your cash flow.

In an ideal world you’ll have a good two months’ worth of expenses cash to hand. You then will be prepared in advance for any downturns you may experience. Try to keep a percentage of your revenue separate – in a savings account for rainy days. Cut back on your spending. Analyse all your expenditure over and above stock and excluding wages. Can you buy it cheaper somewhere else? Do you actually need/want what you are planning to buy?

The amount of money spent running a bridal boutique can be very high. The nature of bridal appointments means a bride is having to try on dresses in a fitting room and boutique which needs to be warm in the winter and cool in the summer. Try negotiating more favourable terms with your energy supplier.

Ditto any other companies who supply you with goods or services over and above stock. Telephone, internet, website packages, box companies, dress bags, dress hangers, dry cleaning – if you offer it, stationery, window cleaning, etc. All these little savings can add up to a lot over time. If you have room in your boutique, do you charge for storage of gowns? I know some retailers are not keen and never would, but it makes for an income stream for little to no outlay. Brides rarely, if ever, will have insurance cover at home for their dress, so it makes sense for the experts (You) to offer to look after their dress fully insured in secure premises for a one-off cost of £XX per month or a one off fee of £XX in the run up to their wedding day or thereabouts. Making very small changes to expenses can help keep the cash in your pocket. Even something simple like buying coffee from a coffee shop. Lunches from a snack shop. This could be anything up to £10 a day. That is a lot of money over a month. About £200. Newspapers/magazine subscriptions can cost a fortune. Consider cancelling anything which represents excess financial

“How many times have brides asked baggage. you if a dress is new when all you have Finally, think about it long done is move it around your rails?” term. Managing your business through a recession is one thing, after it is over you need to carry on the good work. Ask yourself what you want your business to look like after this recession. Write down your shortterm goals and long-term vision for your business and share them with your staff. They are the ones who will help you get there – and stay there. Keep up the fantastic work and all the best for 2023. This year, Helena celebrates her 20th anniversary in business. The training courses she runs are perfect for either brand new or experienced staff members, and suit all sizes of new and existing businesses and budgets. T: +44 (0)1582 451238 /+44 (0)7896 944759 E: info@helenacotter.co.uk www.helenacotter.co.uk