Kathy is breaking down the process of placing systems in place, calling it “the unsexy part of business.”

A little background on Kathy: In 2013, she opened her own brick-and-mortar store, The Salvage Boutique. What started as a hobby quickly became a challenge, as she realized she lacked the necessary processes to run a business efficiently. After researching, testing strategies, and building systems to simplify the business side of retail, she founded The Savvy Shopkeeper blog in 2016, which soon evolved into a podcast. While running her boutique and blog, she was also working in law enforcement. Balancing everything was overwhelming and challenging, making it clear how essential systems and processes are in business.

Kathy asked TSC members about their business types and team sizes. This question was crucial because of the chart she shared, which showed that most attendees were solo retail business owners. Solo entrepreneurs are often underserved, leading us to:

The 3 Phases of Leadership in Retail

1. Delegating – For solo entrepreneurs. Start by documenting tasks that need to be completed. Roles typically outsourced at this stage include virtual assistants and subcontractors.
2. Managing – Typically for businesses with 2-5 employees. This is when entrepreneurs begin building an operations manual to standardize business processes.
3. Leading – For businesses with more than five employees, usually including a manager to handle daily tasks. At this stage, leadership roles such as CEO, CFO, and CMO emerge, allowing the entrepreneur to focus on creating the magic of the business.

Important Quote: “Running an inefficient business due to a lack of systems can cost up to 30% of revenue.”

How to Break a System Down to Make It Easy

Example: Inventory Intake Process for a Product-Based Business

1. Receive Product – Unbox, reconcile, and determine placement.
2. Price – Categorize, claim, and input into inventory/e-commerce systems.
3. Prep & Label – Remove unwanted tags and clean the product.
4. Place & Display – Assign a section, remove stale inventory, and follow merchandising rules.

Stale Merchandise System: Products that haven’t sold in 30-60 days.

1. Don’t discount immediately. Ask yourself: Can it be sold next season? Try remerchandising or refreshing its display.
2. Get creative – Bundle products, offer BOGO deals, create mystery bags, or start a discount strategy.
3. Turn it over quickly – Host a clearance sale, sell live, liquidate, or donate.

Example: Process for a Service-Based Business

1. Customer Inquiry – Client fills out a form, receives an automated email, and you organize the response.
2. Quote – Send a standard reply with pricing, terms, and conditions, saving it in a file.
3. Agreement – Send a prewritten contract with payment terms; the client signs and returns it.
4. Scheduling – Use calendar software to set reminders for key dates.

Example: End-of-Month Accounting & Bookkeeping

1. Categorize transactions.
2. Download statements.
3. Write other entries.
4. Review and reconcile accounts.

Why Systems Matter

Implementing systems allows your business to run like a well-oiled machine by making it:

• More streamlined
• More efficient
• More productive
• More profitable

What Can You Start Documenting?

Consider putting systems in place for:

• Email marketing
• Social media
• Pricing products
• Shipping
• Opening and closing procedures
• Market/event preparation
• Customer service

Ways to Document: Checklists, tutorials, diagrams, flowcharts, guidebooks, screen recordings, and step-by-step guides.

Tips for Getting Started

1. Choose 1-3 systems to focus on, starting with the tasks you like least.
2. Write down each step of a task.
3. Determine the best way to document it (e.g., checklists, tutorials).
4. Look for ways to make it more efficient using software, tech, or automation.
5. Document the system yourself or delegate it to a team member.

SYSTEM = Save Yourself Stress, Time, Energy, and Money.

Member Question:

“I’m having issues with employees following procedures.”
Answer: Create a checklist to help build consistency. Hold employees accountable.

Tip: Reward yourself when you complete a task to stay motivated.