Independent retailers have been voluntarily submitting their financial data to the North American Retail Hardware Association (NRHA) for more than 100 years to aid in the development of the annual Cost of Doing Business Study. This industry resource gives operators of hardware stores, home centers and lumberyards the medians of specific metrics that are crucial to running a more profitable business.
According to Castle Wealth Advisors president and CEO Gary Pittsford, there are three metrics that are critical for a retailer to understand about their operation before they can embark on a profitable succession plan: gross margin, payroll expenses, and occupancy costs. Ensuring these metrics are balanced before selling your business will help you receive top dollar.
In this installment of Hardware Retailing’s yearlong succession planning series, learn why these metrics are important to review and how the NRHA Cost of Doing Business Study can keep you on the right track.
Visit nrha.org/codb to find out how you can submit your data to be included in the 2020 Cost of Doing Business Study. All information remains completely confidential. Contribute your data for a free copy of the study and a Personalized Financial Analysis to help you determine the areas in your business that you need to focus on to get the most value out of your succession plan.