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David Brown

5 Keys to Managing a Profitable and Efficient Jewelry Operation

Be proactive rather than reactive to build teamwork and efficiency.

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MANAGING A BUSINESS is a juggling act. What should you prioritize next? What most needs your attention? It can often be a process of putting out fires daily — responding to who or what most urgently needs your attention.

However, to run a business effectively and see it achieve its full potential, it’s important to take a step back and take stock of what your business most needs from you.

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The secret is to look at the long term “most important” factors rather than the shorter term “most urgent” ones. Here are five key areas to monitor most closely to get the results you need.

1. Your Organizational Structure. Even the smallest of teams will develop a hierarchy, often based on the length of time employees have been part of your staff. This ad hoc pecking order may not be placing the best people in the best positions. Who gets the most opportunities to sell diamonds? Is it your most senior employee, or is it your best diamond seller? You need a clear structure with clear roles, clear titles, and clear job descriptions (unless you are expecting nature to fill the void for you).

2. Your Financial Performance. Do you monitor your numbers regularly, or is your definition of numbers what your CPA gives you on an annual basis? It’s almost a well-worn cliché, but you can only manage what you measure. Your numbers are the cholesterol, the heart rate, and the blood pressure of your business. Check them every day.

3. Your Own Job Description. What is your role in the business? What is the best use of your time and how can you contribute in a way that uses your skills most effectively? Too often, I find owners will organize their staff members’ roles without effectively organizing their own.

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4. Time Management. Having defined your role and that of your staff, you need to ensure that your time is used wisely. According to Inc.com, the average worker doing an eight-hour day is only productive for 2 hours and 53 minutes of that time — less than 50 percent! That leaves over five hours of the day that you are paying staff to do nothing, a tremendous waste of time and resources. Ensuring time is well managed and utilized is a huge cost saver for your business and an effective means of increasing your results.

5. Your Culture. Every organization has a culture of what they represent, whether they are aware of it or not. What your company does and what it stands for will determine the extent to which employees commit and engage in your business and how they will treat your customers. The absence of an organized culture does not mean one doesn’t exist — nature will again fill the void and you risk a toxic culture being formed if you don’t take steps to control it. Companies with happy employees have been shown to outperform the competition by 20 percent.

Being a manager is about making active choices, not fighting fires. Shaping your goals consciously in each of the areas listed above will make a huge difference to your business performance.

David Brown is the president of Edge Retail Academy, a leading jewelry business consulting and data aggregation firm that provides expert business improvement plans to help with all facets of your business, including improved financials, healthier inventory, sales growth, increased staff performance, recruiting and retirement/succession planning, all custom-tailored to your store’s needs. They offer Edge Pulse to better understand critical sales and inventory data, to improve business profitability, benchmark your store against 1,200-plus other Edge Users, and ensure you stay on top of market trends with their $3 billion-plus of industry sales data. Contact (877) 569.8657, ext. 001, [email protected] or EdgeRetailAcademy.com.

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SPONSORED VIDEO

Time to Do What You've Always Wanted? Time to Call Wilkerson.

It was time. Teri Allen and her brother, Nick Pavlich, Jr., had been at the helm of Dearborn Jewelers of Plymouth in Plymouth, Mich., for decades. Their father, Nick Pavlich, Sr., had founded the store in 1950, but after so many wonderful years helping families around Michigan celebrate their most important moments, it was time to get some “moments” of their own. Teri says Wilkerson was the logical choice to run their retirement sale. “They’re the only company that specializes in closing jewelry stores,” she says. During the sale, Teri says a highlight was seeing so many generations of customers who wanted to buy “that one last piece of jewelry from us.” Would she recommend Wilkerson? Absolutely. “There is no way that I would have been able to do this by myself.”

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