Overcoming the Challenges of a Family-Owned Retail Operation

“A client first came to SCORE in 2008 looking for guidance from us as his family members wanted to buy their cousin’s Sporting Goods business. The step-mother in the family offered to provide the funding. The client’s brothers would also offer some funding and the step-grandson and nephew would be the managers of the store. I worked with the client to review the value of the sporting goods retail store and we noticed right away that the inventory was too high.

As it turned out, the family purchased too much inventory that was obsolete. I continued working with the client, providing advice on the business, working with family, putting together financial controls, and managing the inventory. I kept the client from investing too much money into the business. I also tutored all the store managers on how to value inventory usage compared to sales usage. We continue to work together to grow and improve operations. ”

Robert M. Cox, Jr.
Montgomery County SCORE (#513)
Montgomery County, PA