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Patricia M. Johnson & Richard F. Outcalt
Retail Strategists and Retail Turnaround Experts
Co-Founders, The Retail Owners Institute® • Business Strata:G®
There are many ways to succeed in retailing, many ways to assert your competitive edge, whether location, pricing, merchandise selection, knowledgeable staff, etc.
But there is only one way that retail businesses fail: they fail financially. So the key to success? Have a competitive edge, and take charge of the financial demands of the business.
As a retailer, navigating your financials can feel overwhelming. That’s why we’ve created a suite of online calculators designed specifically for independent retailers like you. No spreadsheets, no guesswork—just fast, clear insights for your next business decision.
Here’s how and when to use five of our powerful tools:
The question it answers: What would happen if I...?
Start here when you’re facing big-picture questions about your business:
“What will it take to break even?”
“Should I close a store? If so, which one?”
“Can I afford a remodel? What if I need a loan?”
In just minutes, this tool shows you your projected Profit & Loss, Open-to-Buy, and Cash Flow—all in one place. With just a few inputs, you can test different scenarios and see the financial outcomes instantly.
If you’re exploring strategic decisions, this is your go-to calculator to uncover the real impact on your bottom line.
The question it answers: What do our “vital signs” show?
Want to know how your store is really performing? The Key Ratios Calculator delivers fast, accurate metrics like:
Profit %
Gross Margin %
Inventory Turnover
G.M.R.O.I.
Current Ratio
Debt-to-Worth Ratio
Plus, it benchmarks your results against industry standards for your retail segment. Use this tool to evaluate financial health, identify strengths, and address weaknesses. Perfect for quarterly check-ins or when preparing to make big moves.
The question it answers: How resilient is my business?
When sales are up, down, or flat, resilience matters. This tool analyzes trends in your Balance Sheet ratios to reveal the staying power of your business.
Get a 1-to-5 score on key metrics to spot early warning signs or validate your strengths. Use it when planning for the future—or when you just need peace of mind that your business is on solid ground.
The question it answers: Will we make a profit this year?
If you want clarity about your P&L, this tool is a must. Enter what you already know—sales, gross margin %, and expenses by category (use our SPEEDY Expense Analyzer, aka “the Bucketizer”, if needed). In minutes, you’ll see:
A 12-month profit projection
Expense trends as a percent of sales
Immediate insights into trouble spots or opportunities
And if you don’t like what you see? Adjust inputs in real time to explore “what if...?” scenarios. Test different strategies until your plan “pencils out.”
Use it for annual planning, mid-year reviews, or any time you need confidence in your profit outlook.
The question it answers: How much inventory should I buy—and when?
This tool combines the art and science of buying to give you clear monthly buying plans, by department, in minutes. Enter basic info — beginning inventory, expected sales & margins, and planned turns—and you’ll get:
Maximum inventory to bring in each month
Ending inventory targets (the real key number)
Your projected G.M.R.O.I.
Perfect for planning upcoming seasons or refining your buying strategy. Need adjustments? Change sales, margins, or turns and instantly see the impact.
This tool helps you balance buying and selling like a pro while keeping an eye on cash flow and inventory turns.
Well, that depends on your situation!
Big decisions about your business? Start with the 3-in-1 Integrated Calculator.
Need to evaluate financial health? Use the Key Ratios Calculator or Financial Strength Rater.
Planning for profit? Head to the PROFITS Forecaster.
Fine-tuning inventory? Try the Multi-Department Buying Plan Calculator.
Each tool is built for speed, accuracy, and your retail reality. No accountants, no spreadsheets—just you, your numbers, and decisions you can trust.
Let’s get started!
Use the link below for the Strata:G Calculators. (That’s “strategy.” Every retailer needs one!)
"How are sales?" is always one of the key questions among retailers. And the preferred response? "We beat last year!"
Now, thanks to The ROI, you can have even more perspective.
We make it easy to compare your results to other retailers in your retail sector. Go here on The ROI site to see the quick reference trend charts.
At a glance, find out...
Are you outperforming the retailers in your sector?
Seeing the same trends for the trailing 6 months?
Or...??
*Reports from the government are still lagging; latest numbers – available January 14, 2026 – are for November 2025 sales.
Let's say you're feeling better about your business. It's no longer losing money. Sales are inching upwards. You're ready to move past that "hunker down" mentality of recent years.
But, you discover that your vendors, or your bank, or your landlord do not share your enthusiasm! They say, "Glad your sales are better, but...." Or, "Our credit department is still reviewing it."
"What's with that?", you wonder. "How could they NOT want more business from me? I've been a darn good customer! Is there something they know that I don't know?"
Could be. And you won’t find the answer on your P&L.
Here's what your Balance Sheet is telling outsiders - in nanoseconds! - about your business:
Will you be able to pay your bills on time?
Is your business getting financially stronger, or weaker?
This lively Webinar of the Week, led by Pat Johnson and Dick Outcalt, Co-Founders of The Retail Owners Institute, will show how you can know that for yourself. In moments.
After all, your vendors and lenders already are doing this. Shouldn't you know what they know?!
2025 may have been very challenging for your business, but 2026 doesn’t have to be. Maybe we can help.
As an independent retailer, you carry a lot on your shoulders, but you don’t have to face it alone. The Co-Founders of The Retail Owners Institute offer personalized consulting services designed to help you navigate today’s retail challenges.
Start with a free, confidential Zoom session with our Co-Founders, Pat Johnson and Dick Outcalt. Known as “The Zen masters of retail finance,” Pat and Dick bring decades of experience and a practical, empowering approach.
Reserve Your Complimentary Session Now
It will be fun to meet you!
RetailOwner.com
Avoid mistakes • Seize opportunities • Look ahead now
As we approach the final week before Christmas, the last shopping weekend; amidst…
All the volatility, uncertainty surrounding tariffs, inflation, etc.
Concerns about merchandise availability
Mixed messages about the shoppers and their intentions, whether Millennials, Gen X, Boomers
The bifurcated economy - Wall Street versus Main Street
The "K-shaped recovery" - those doing well doing better; those doing not so well doing, well, not so well
Amidst all of that, we believe the appropriate answer to "How are you doing?" always will be based on your definition of "What constitutes success?"
Think you’ve never documented that? Think again.
We encourage a quiet moment of reflection, back to the time when you were first dreaming about owning your own store.
You were not alone!
In fact, each year in the United States, about 100,000 new stores start up. Every hour, every day, 11 new retail businesses switch on the Now Open! sign for the first time!
Who are these new retailers? People just like you.
They love the products, or the customers who buy those products.
They want to be their own boss.
They're willing to take risks.
They want to contribute to their community.
They are creative, have a vision for new ways of doing things.
They're not afraid of hard work.
They like being around people - the people who work for them, the customers, the suppliers, their neighboring merchants.
Whatever differences there might be, there is a shared experience: they all Dreamed the Dream!
Now, fast forward a few years. Living the dream is not easy. We appreciate that.
But especially this year, when there is seemingly no consensus about anything, it is more crucial than ever to remind yourself "What constitutes success?"
That starts by revisiting your dream.
Then, take a look around your stores. See the experience you’ve created. The merchandise you feature. See the people on your staff. The customers. Your neighboring merchants.
So, how are you doing this year? Our guess is you have much to be proud of.
Have a wonderful Holiday Season, and may 2026 be full of wonder and joy.
Hope is always in style!
When it comes to managing inventory, every retailer faces these dilemmas:
Not too much
Not too little
Not too old
Not too narrow
Not too deep
Not too pricey
Not too cheap
In other words, it MUST be "Just right!" (Where IS Goldilocks when we need her??)
We're not talking about the ART of buying: the taste and judgment that goes into selecting the merchandise.
The more fundamental issue is the "SCIENCE" of buying, the quantitative part. And for that, you need a basic budget for how much inventory to bring in, and when. (What some call an Open-to-Buy plan.)
Open-to-Buys now can be done online, by you, from anywhere, in minutes! Automagically!*
And that's why The ROI can insist so boldly, “Control your inventory buys – or get out of retailing!"
Watch this lively, insightful and free Webinar of the Week, led by Pat Johnson & Dick Outcalt, Co-Founders of The Retail Owners Institute.
See how turns are like cruise control for inventory levels.
See how The ROI's online SPEEDY Multi-Department Open-to-Buy Calculator empowers you to do buying plans whenever you need them, all on your own.
And meet the Buyers Tally Sheet; don't go to market without it!
Take advantage of this powerful session. And be sure to encourage all of your buyers to take advantage as well
Why Wait? Try It Now!
Set – and enforce! – those boundaries on your inventory buying.
Raise your inventory turnover, then get ready to watch your cash flow improve!
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*Unlimited access for ROI Members to Multi-Department Open-to-Buy Planner. (Not a Member yet? Let’s fix that. Go here to get Member Access to the entirety of The ROI now.)
*Reports from the government are still lagging; latest numbers are for October sales.
Technology never can replace judgment.
"Artificial intelligence," "machine learning," and all the latest algorithms can save time. And accomplish more analysis than could otherwise be done. But replace judgment?!
However, like The ROI's financial projecting resources, appropriate technology sure can inform a retailer's judgment!
Schedule a free Zoom session with the Co-Founders.
The Retail Owners Institute® has been empowering owners since 1999 to "Turn on their financial headlights!" Our tools and resources are trusted by thousands of independent owners to help grow financially stronger and resilient businesses.