Retail security experts have long said there are three sources why inventory disappears … external theft, internal theft, and errors. Physical inventories not only help a retailer confirm what’s on hand and in what quantities, it also helps get a glimpse on curious and problematic aspects of operations.

Last Sunday we conducted an early physical inventory so we could adopt a mid-year schedule. In Florida, summer has been a bit quieter than our first winter months. The last thing we need to do is celebrate the holiday shopping season and then count everything in the store on December 31st. So, we decided to get it done now, while inventory is lower and before we ramp up for the holidays.

Our retail space is approximately 2,400 square feet and we had eight of us working from 10 am until 6:30 pm to scan the inventory. Our computer systems vendor provided the scanners and instructions. We spent the week before getting organized and receiving everything before Sunday arrived.

With today’s technology, you can easily conduct your own physical inventory with your own staff. There are third party services you can employ, but it’s really not necessary to go outside since you’ll add extra time meeting them to explain your business.

On Monday morning, we began with an inventory that was correct, clear of receiving errors and corrected for “shrink”. During an author event earlier in the year, we knew a stack of books had disappeared, but we had no idea what else might have been stolen. The sobering fact is that even in small and safe communities, theft happens. Theft rings will even travel great distances for an opportunity.

The benefits of doing a physical inventory are many. We learn:

  • To correct item classification errors (books tagged for wrong sections) and ensure each new item brought into inventory has key fields properly coded
  • What processes need to be fine-tuned to ensure every item is costed properly
  • How to do mini audits throughout the year to keep the inventory accurate
  • What kinds of merchandise are most vulnerable for theft
  • What kinds of merchandise are most vulnerable for damage

Most importantly, we have a renewed commitment to shelving merchandise accurately and a new faith in our on-hand quantities … which is something we all appreciate each time we look for an item on the sales floor our system reports we have on hand.

When the cost of  inventory is the greatest cost of a bookstore, this annual count counts and is an essential step in managing the business.

It’s summer and that means time for vacation. Even though we have a permanent staff schedule, each week the schedule feels like a bowl of spaghetti with shift swaps happening left and right.

With our bookstore bistro we have further complexities … some booksellers also can work the cafe, but not all cafe staff can work the retail floor.

The aprons go on when we enter the store and we’re always ready to help out on the sales floor when necessary.

It would be lovely if coverage for all vacations, illnesses and surgeries, family visits, and special occasions could all magically work out. Unlike the 9-to-5 world, part-time staff will love working in the bookstore yet will always have something else as their number one priority. Opportunities for trips surface. Retirees can require a lot of time off to visit (or host) family and friends. College students sometimes can’t get the schedule they want at school and aren’t available when you need them most. Parents with children can have a slew of events they cannot miss. Then, cold and flu season hits.

The reality of owning a business is that in the end, it’s up to you to make sure all hours and tasks are covered. And some days, that’s easier said than done.

As we often work later than intended, cover shifts when we’d rather get back to business development, and spend more time arranging schedules, simply covering all of the open hours can be a challenge. And this can be a major factor for some who are thinking about the possibilities of owning a bookstore. If dropping everything for the business isn’t something you can do often, something will suffer as a result. In the end, we can understand why it’s so challenging to get to everything on our “To Do” list.

Ramping up a business to reach a level of revenue and net profit that allows you to build a core staff and even add some management-level positions. What a worthy goal that allows you to reclaim some of your time and be able to focus on the things that matter most to the sustainability of your business while the daily tasks get done.

Until then, long days where you are pulled in a variety of directions will be the norm. It’s exhausting. Yet unless you have unlimited funds to subsidize your start-up until you reach sustainability, most booksellers are moving fast and furiously, on their feet, constantly learning and juggling.

The glorious benchmark is to have even a handful of staff members who can take on important tasks so when it’s your time to take vacation, they’ll be the one filling in for you.

People seemed surprised to see us in New York City last week for BookExpo. With our own new bookstore just a bit over 3 months old, we did feel a bit like new parents leaving an infant for the first time. The difference is that we’ve been with our staff every inch of the day since set-up, so it was time to engage with the industry and be a part of the exciting Vital Bookstore project on the convention floor.

So many booksellers asked us to tell them about our experience and discoveries. Mark and I both had a similar response: “We knew it was a lot of work. Boy is it a lot of work!”

More than 20 volunteers joined the Story & Song Bookstore Bistro staff to help us unpack and organize 12,000 books plus cards and toys.

Last July we found a property we thought had potential. August we made an offer, then spent the rest of the month preparing our SBA (Small Business Administration) loan application and list of supporting documents from our existing business and personal lives. Contractors filled our time in September and October. On October 11 we got the keys and with permits and such, our contractors started in November and finished the day the fixtures arrived in mid-January.

There’s a lot to do. It all takes time. And, the work has just begun.

February 10 we opened for business. Then, the tasks changed completely. The focus moves from setting up to managing daily operations.

We were both in constant motion for at least six weeks. At the store training staff, receiving the back orders and non-book items that took more time than we expected. We were exhausted at the end of long days. And, there were still so many things still on the list that needed to be done.

The funny thing is that all of these tasks need to be done whether you have a 1,200 square foot store or a 5,000 square foot store. If you have a smaller store it may take you relatively less time, but the “To Do” list looks the same. Stock register cash, bookkeeping, social media and publicity, scheduling events, buying books, answering requests from authors, replenishing greeting cards, running Z tapes and starting it all again the next day.

Read through this and we hope you get the sense that bookselling is a complicated business regardless of your footprint. Now that we’re ringing sales, hosting events, and keeping the store stocked, it’s been non-stop … and we have had years doing this for others and are familiar with retail management and the book industry.

If your dream is to open and run a successful bookstore, do yourself a favor and take your time to learn, prepare, get training, set things up properly, and be ready for an amazing launch. It’s stressful enough when you schedule each phase of your start-up and give yourself some wiggle room for things to go wrong (because many will).

So, our advice remains the same … learn about your new industry and career, avoid imposing more stress with high start-up expectations, and make sure you continue to breathe as you work through the long list of things to do to turn that dream of your bookstore into reality.

Bookselling is a unique profession in so many ways, but one that truly stands out is just how many people dream of having their own bookstore. We’re talking people spending years visualizing their bookstore, identifying books they’ll sell, and dreaming of the store filled with people who come to enjoy a heart-felt conversation.

This contribution to our inner lives and the inner lives of our neighbors and friends is one of the main reasons people get into the business. It’s also a big reason people choose to become booksellers after retiring from other careers.

Happy 20th anniversary to the river’s end bookstore in Oswego, New York!

One of our friends and colleagues in the book business is celebrating 20 years of being in business. The river’s end bookstore (yes, all lower case) in Oswego, New York was created by Bill Reilly who came to us when he had just retired from the New York world of magazine advertising. He was ready to relocate in upstate New York and begin a new chapter in his life.

Bookselling became his new career.

Since that moment, Bill has helped transform Oswego’s central business district in his corner space that makes a big impression when you drive into town. Bill added momentum and energy, enthusiasm and ideas to the business district. He has worked in collaboration with the university, local schools, and charitable organizations to help build community around books and ideas.

Twenty years ago, the space needed a real transformation since it was an historic building that had been used as a clothing store for years. I remember the shag carpeting, fitting rooms that needed to be demolished, and a drop-ceiling that was a throw-back to the ’70s when heating oil prices soared.

Bill wanted to have a beautiful bookstore that the locals would appreciate. He wanted to lift up the downtown district. He wanted to make a difference.

He certainly has accomplished this.

Bill’s wife Mindy joined the business after she retired from the university after working extra hours in the bookstore since it opened. Together, they have hosted authors, helped schools, worked with the university, and worked hard to live the dream.

Today, Bill and Mindy celebrate twenty years of bookselling and we are thrilled that their son Emile will carry on the tradition.

Bookselling, although demanding and challenging, can offer such rich rewards. For many, it starts with a dream and then can lead to making a difference. What a way to spend the next chapter in life.

Congratulations, Bill and Mindy and the booksellers at the river’s end bookstore! You have lived your dream in a beautiful way.

 

 

 

When you’re planning a business, your thoughts are filled with dreams and ideas. It’s fun to think about what you’ll carry, who will shop at the store, and what people will want to buy. These become the foundations of the business plan and you make so many decisions based on these assumptions.

And then you open the doors.

So now that we’re at the 90-day mark, here are some of the surprises we’ve had along the way. Some pleasant, some not so much, yet all of the lessons are valuable.

Mother’s Day books and gifts enjoy the focal point display at the main entrance. Customers need help finding the right gift.

Retail shortfalls become bookstore opportunities. We keep hearing the business news report that retail is in significant decline due to online shopping. While that may be true for many kinds of retailers, it has not proven true for us. Greeting cards are in such demand we scramble to keep the pockets full. Quality products are in short supply. Some people want higher quality than what cheap goods just got off-loaded on a freighter from China. New baby gifts are hot in our grandparent market.

Gifts can make you a destination. One of our customers came to the store to buy her husband a 75th birthday present. She purchased a $160 globe that revolves with power from any light source. Our fourth order for these gloves has been sent in so we have more for our Father’s Day display. People often don’t think of buying a gift far in advance. While some of these gifts are for children’s birthday parties, many are for “big” birthdays, weddings, and graduations … life’s big moments.

Uniqueness sells. I never expected to have so much product on consignment. Yes, we do have some local books on consignment, but in support of our theme of “the art of living,” we initially brought on five local artists and hung their art throughout the store. Friends make beautiful pottery, so we set a breakfast table and paired it with cookbooks and fabric runners and napkins made by a neighbor.     My dear friend’s Kanzashi pins (the Japanese fabric folding) tell a beautiful story. All of these items are one-of-a-kind. In an era of mass production, uniqueness sells.

“Shop Local” awareness is greater than expected. Yes, there are people who come in and take a photo of books and our shelf-talkers, but this is rare. Many times each and every day people comment how happy they are that we have opened Story & Song and they will be shopping at our store because they want us to succeed. Still, we have “Shop Local” messages in the store because we know that consumer education is ongoing.

“New” doesn’t matter as much as we think. In the book business, we’re constantly trying to keep up on what’s just off the press and in the news. While this matters with some books and authors, it plays a very small part of what sells on any given day. People want and need you to point out worthy books and special items. When you don’t know what you want, it’s hard to find it online. Carry what you and your staff love and want to sell.

Be open to a greater vision, one that goes beyond books. We are a bookstore, yet we are also about quality gifts, wine, concerts, conversation, and art. In a small market like ours, people are hungry for a more interesting experience and our business needs income from all of those areas to be sustainable.

It’s been fun (and exhausting) and I’m feeling the surprises along the way will always keep things interesting.

Once your dream becomes reality, you have made a stark right turn. Your vision is now central to your “To Do Today” list. You go from thinking about things in a general way to making them actually happen.

We’ve now entered our third month of being in business. Looking back to the planning and set-up stages, it’s now even more clear what new store owners need to get right from the very beginning. Our work with clients that have been open a few years reveals the kind of difficulties that can surface later on when it’s harder to change what’s already firmly in place.

These are the biggies, in no particular order.

Choose a computer management system that works in the book industry.
The most pain we see is when someone has bought a generic POS system because the screen is sleek or the system is most affordable. Now that I am the one ordering and returning books at this stage of our start-up, I see just how time consuming it is even though we import title data from book industry sources.

Be kind and gracious to all authors and have a system in place so you can make inventory and marketing decisions.

Know how you will accommodate self-published authors.
Self-published authors will make a beeline to you. How will you handle people who approach you every day and want to tell you about their book … or their sister-in-law’s series of children’s books? Know if you’ll take books on consignment (and learn how to do that) and how self-published authors who live in your community (and don’t) fit into your plan for inventory, programs and events. You won’t find much time to get things done if you are constantly taking time out to have ad hoc conversations with self-published authors, so have materials ready. Here’s our web page that allows them to tell us about their work and their ideas for helping us sell (not just stock) their book(s).

 

 

 

Be present on the sales floor.
Your competitive advantage is that you are a neighbor running an independent business that has invested in the community. Be visible to customers who want to thank you for opening. Be visible to staff who are watching how you greet and interact with customers. Show staff what to do when they’re not busy with customers. Answer the phone. Write shelf-talkers. Restock the supplies at the cash wrap. Clean the restroom. You are setting the pace and the tone.

Present a full and rich selection.
As it’s been said many times before, you don’t have a second chance to make a first impression. You’ll learn a lot about how to shape your selection once you’re open and see what people are requesting and buying. Yet from the beginning, your selection can spark tremendous word-of-mouth marketing, your most genuine and valuable way to get new customers. Spark that momentum with the best books and gifts and toys and cards you can showcase from day one.

Some things are hard to change once routines have been set, behaviors have been established, and opinions have been formed. Prepare for a successful launch and you’ll spend less time reacting and more time enjoying the amazing bookstore you’ve been dreaming about for so long.

We’ve been wearing roller skates for months as first there was so much to do to launch the bookstore, now we’ve focused on shifting to organizing daily operations. Every day is over-flowing with things to do.

Mark and I have been thinking a lot about Tom Warner these last several weeks. Tom and his wife Vickie Crafton were one of our earliest trainees in the 1990s. After full careers in the textile industry, they purchased Litchfield Books. Tom said he wasn’t going to spend his retirement playing golf; he wanted something that would keep him invested in life. Each time we would see them at industry gatherings, Tom would ask us, “Why didn’t you tell me I’d have to work so hard?” Then, he’d add, “And I’ve never enjoyed my work as much as I do now.”

Tom died a few years ago and yet his stories live on. When we’ve come home exhausted from the day, we too acknowledge that there’s nothing else we’d rather be doing at this stage in our lives.

Here’s the counter-balancing moments to all of the administrative work:

  • children who draw us pictures or write notes on the blackboard in the play area
  • everyone who makes an effort to tell us and our crew just how much they love the store and how glad they are we have opened
  • when customers make the bookstore a stop for visiting friends and family
  • customers on the other side of the county who purchase from our website because they want to support a local business
  • our amazing crew who are over-qualified and beautifully devoted to making Story & Song a friendly and welcoming place
  • customers who tell us they found out about the store from a friend, hairdresser, or neighbor
  • 130+ people who show up to listen to and sing along with the local ukulele band
  • a sell-out concert two weeks before Harpeth Rising arrived to do our grand opening finale
  • a staged reading of “Looking For Normal” which prompted everyone to ask big-picture questions about society and our own biases
  • children who love telling us about what they like to read
The Kooks, our local ukulele band, drew a standing-room-only crowd. People want connection and community.

The Kooks, our local ukulele band, drew a standing-room-only crowd. People want connection and community.

We are tracking above our sales projections, yet we’re still working relentlessly to fill the events calendar with reasons people should come into the store. Buying the opening inventory was one huge project and now we are working hard to transition into buying new releases for the coming months. Every day the interruptions keep us from getting things done, but saying “hello” to a customer who has come in with a neighbor is too important to miss.

In the next blogs we’ll be writing more about what we’ll call the “transition period” … the time when you’re switching between opening the store to operating the store. It’s another unique chapter on this path of developing a sustainable bookstore business.

Yet in the meantime, it’s important to take off the roller skates, stop, and breathe in the sweet moments that enrich each day in the bookstore.

We’re not thinking about ebooks here (ebook sales have plateaued and have been on decline for many months), but information technology as it powers bookstore operations.

Our bookstore management system is on the manager's laptop in our dining room while we set up and learn the many ways it drives store operations.

Our bookstore management system is on the manager’s laptop in our dining room while we set up and learn the many ways it drives store operations.

Our dining room is transformed into our central area for setting up and learning how to effectively use our computerized bookstore management system. We’ve always said it is good to give yourself time. Now, it has become even more real.

Until now, I really never thought of the “To Do List” just for the setting up the system. It’s actually quite lengthy…

  • Set up store information for customer receipts
  • Enter departments, sections, and media (formats) to organize your inventory and determine how you want to analyze sales and inventory turns
  • Go to Edelweiss, where the publisher catalogs are managed online, to establish category mapping so you can import title information and have each book be automatically assigned to its proper category
  • Learn how to import book data from Edelweiss and your wholesalers
  • Develop customer loyalty programs so your system tracks customer purchases and helps you automate perks (no punch cards in today’s bookstore!)
  • Enter vendor account information (after you’ve opened your accounts!)
  • Lean to create purchase orders
  • Test electronic ordering (which is the best practices of our industry)
  • Learn to receive inventory so on-hand quantities are updated when you press the magic button
  • Understand how to research books using book industry databases (not amazon.com), find books customers want to buy from you, and put those on an order
  • Develop discount categories, add your staff discount and apply them only to the appropriate product departments
  • Establish security levels for various staff positions
  • Learn how to ring up a sale
  • Understand how to run a Z tape to close out sales for the day, then reconcile that for your bank deposit
  • Set up proper back-up procedures

And I haven’t even gotten to the accounting interface! The meeting with our CPA is Monday.

A computerized bookstore management system is essential to connecting to the book industry’s massive title databases and inventory detail, and this is where our systems go so far beyond Square or the generic POS systems. We are data-driven because each week we have thousands of new books released and our inventory is always fluid.

After a busy month of learning and testing our system, it’s clear that this effort requires planning, a keen attention to detail, and time before you go “live”.

With Small Business Saturday the perfect opportunity to remind people of your start-up and the importance of small business to the local economy, why not do a pop-up shop?

Start-ups do pop-ups for a variety of reasons, mostly for visibility and the opportunity to learn from your customers while you’re still making critical decisions about your selection, programming, etc.

A pop-up shop allows you to learn from customers and begin learning store operations.

A pop-up shop allows you to learn from customers and begin learning store operations.

We learned the importance of being mindful the “intense” opportunity. In a limited amount of time you will arrange tables, merchandise your selection, set-up cash register operations, handsell books, ring up sales and gather customer information.

Then, when it’s all done, you’ll box up what’s left, haul everything that’s left back home, close out your register, look at what sold, and let all those customer conversations sink in.

It’s trial by fire.

At our pop-up on Saturday, the good news was people showed up! Our location is a destination, people aren’t just going to stumble upon it. Marketing was key so we sent out an email promotion, posted it on social media, and put signs up on the road beside our tiny Amelia Park Town Center.

Friends and neighbors came; they wanted to buy. Although the internet connection worked via our cell phone to the laptop so we were able to accept credit cards, the receipt printer decided to take the day off.

So, here’s what we learned:

  • Your troubleshooting and stress management skills you’ve built throughout your career will help you push through anything that comes your way. (We electronically ordered from both wholesalers with one failed transmission that led to duplicate shipments. Two books arrived damaged.)
  • Present a bit of everything you think you’ll carry in your store, then see what sells. The wholesalers offer non-book merchandise, so try out some things you think might sell.
  • Talk with people about what they like to read and tell them you’ll carry books those kinds of books.
  • Books change lives and people want to tell you their stories. Listening is such an easy way to build a relationship.
  • Say a few words about why the book the customer has picked up is noteworthy or special; show them beautiful books; tell them about what you heard the author say in a radio interview. People buy stories and beautiful things.
  • People will be incredibly patient and kind. These are your neighbors and they want you to succeed.
  • Some people will want something you don’t happen to have that day. Write it down and go find it and order it for them. They will be wowed by your interest and  initiative. When you make it easy and go the extra mile for someone, you are gaining a fan.

Pop-up Bev Pat JeffFor me, the technical aspects of running a store on an off-site laptop, getting all of the electronic parts to perform and learning all of the operational aspects from creating a purchase order to receiving books, selling and running the close-out report provided a training ground.

Even with a pop-up, you have the opportunity to learn all of the things you’ll soon be doing on a daily basis.

From marketing to operations, it’s all good learning.

It’s the week of Thanksgiving and I welcome the opportunity to take a deep breath from the long list of things that still need to be done before launching Story & Song Neighborhood Bookstore Bistro.

Today I was at the shop while the electrician was wrapping up. Dan worked a very long day, was covered in dust from the acoustic tiles and sheetrock, and was ready to embark on a 40 minute drive back home. Yet he took a moment to let me know a few things about the audio lines, then to tell me just what a “cool thing you’re doin’ here.”

Small Business Saturday Banner jpeg

I’m grateful for:

Dan and the fact that he’s telling others about this bookstore where you can come listen to music.

Our contractors showing up during a holiday week.

Our banker gave us an update today and said how much she was excited about seeing the bookstore once all of the renovations are completed.

Successful electronic order transmissions to both book wholesalers for our pop-up bookshop this Saturday.

David Sax, author of The Revenge of Analog: Real Things and Why They Matter, and his wonderful piece in Sunday’s New York Times, “Our Love Affair With Digital Is Over.”

My colleagues, the good souls who own independent bookstores

The countless members of the community who have gone out of their way to tell us how thrilled they are that we’re opening a bookstore, then ask when we’ll be open.

Small Business Saturday

Thanksgiving

And I’m grateful to have Mark as my partner in life and in business. It makes a difference when you have support for your values and priorities.

If you’ve embarked on a dream to open a bookstore, may you always take a moment to refresh your energy by taking note of the reasons to be thankful for the opportunity to do something rewarding and enriching with your time, energy, resources, and talent.