E277 – Focus on cash flow and profitability when building your retail business | with Alvin Narsey
Alvin Narsey is a successful entrepreneur with a strong focus on a freedom-based lifestyle. He created a framework that enables retail business owners to increase revenue while practicing a hands-off approach, with a sharp focus on cash flow and profitability. Today, Alvin spends his days coaching other retail entrepreneurs who want to construct a business that generates cash flow and profits without requiring hands-on involvement. With over 16 plus years of experience as an entrepreneur, Alvin appreciates the difference between working for a living and having a business work for your lifestyle. Today he breaks down the framework he used to become a lifestyle entrepreneur so you can apply it to your business.
The framework that Alvin uses with his clients is multi-step.
Step one: Focus on mindset. You need to know your motivation, what you’re trying to create, and why. Ask yourself what you want out of life and what you want your business to provide for you. Then you reverse engineer everything to make it happen. With reverse engineering, you start by looking at the big picture and then breaking it down into manageable steps. What is the most effective way to reach your goal, and what actions and strategies do you need to implement to achieve them?
Step two: You need to be willing to relinquish control. You need to delegate to others and create standard operating procedures (SOPs), so things get done the way you want. In the retail space, business owners typically wear many hats. That is not conducive to hands-off growth. To be a lifestyle entrepreneur, you must relinquish control and create SOPs. Hire people who can take over the tasks and develop procedures that keep your business running smoothly. This enables you to focus on different ways to serve your customers and expand your business, which leads to step three.
Step three: Always put profits first. In retail, where there is so much discounting, it’s a race to the bottom. You need to think strategically to increase your profit margins, enabling you to live the lifestyle you’re looking for.
This framework applies to all business models, whether in the retail or marketing space. The methods and strategies remain the same. You need to look at the fundamentals of your business model and work through the framework to achieve the desired results.
Pricing and branding are essential components of Alvin’s methods as well. As a business owner, you need to know who your ideal avatar is and how you will attract them. Once you know your target consumer, you need to create a clear message of the value you offer with your product or service. The last step is to figure out your price point. Once you have a price point and a target market, you can manipulate your profit margins.
No matter your industry, the world is large enough for every entrepreneur to attain success. All you need to chase your dreams is to change your mindset. Once you do that, you open yourself to a world of possibilities.
In this episode:
[4:25] Alvin shares how he became an entrepreneur
As a pharmacist, Alvin owned shops within his knowledge base
Look at your end goal and work backward to create the road to get there
[7:15] Of all the things you need to focus on to change your life, the primary one is your mindset
Everything in life comes down to mindset
How you see one thing is how you see everything
When you adopt an abundance mindset you realize the opportunity around every corner
[10:56] When you take a step back from the day-to-day operations you open your time up for new possibilities
Focus on how to increase client acquisition
Learn how to relinquish control
There is only so much one person can do on their own within 24 hours
[15:00] The three-part framework to scale your business
Hire people to work for you
Create SOPs so they can do the processes the way you want
Focus on profits and margins
[20:25] Adopt an abundance mindset
You can never run out of ideas
You view the world as an opportunity and look for them everywhere