What Every Store Owner Should Know: Practical Skills and a 30-Day Plan

Store owners need to know how to calculate how much their store earns from sales, plan payments and purchasing, understand customer needs, organize sales staff, and check accounting records. Start with your own documents: sales and returns, supplier invoices, expenses, bank statements, and inventory balances. They will help you identify which store problem to address first.

Here is a 30-day practice plan. During this time, you will prepare a break-even calculation, a payment calendar, a list of products to review for purchasing, and a plan for working with sales staff. This is a learning plan: results depend on the accuracy of your data, customer demand, and what you do next.

Prepare your data and choose one task

Use the most recent complete month. If your store is seasonal, add data from a comparable season: pre-holiday sales and sales in an ordinary month can differ significantly. For an online store, check orders placed, purchases paid for, cancellations, and returns separately.

Gather the following in one folder or spreadsheet:

• sales, discounts, and returns for the chosen period;
• the cost of goods sold and supplier invoices;
• expenses for rent, staff, advertising, delivery, banking services, and other store needs;
• cash balances, debts, and due dates for upcoming payments;
• inventory balances, open supplier orders, and delivery dates;
• recurring customer questions and errors in store operations.

The owner defines the task and makes decisions. An accountant or the employee who maintains the records can help check the figures. The buyer confirms supply terms, while sales staff explain what happens during a sale. If you work alone, carry out these steps in sequence.

Choose one task for the first month: determine the minimum sales volume, identify a future cash shortfall, review purchasing for a specific category, or reduce order errors. Write down which document or metric will help you check the result.

Calculate how much remains from sales after costs

Gross margin: the share of revenue left after covering the cost of goods

Gross profit is sales after discounts and returns minus the cost of goods sold. Gross margin shows this difference as a percentage of sales. Formula: gross margin = (net sales − cost of goods sold) ÷ net sales × 100%.

In this illustrative example, amounts are in Ukrainian hryvnias (UAH): net sales for the month are UAH 100,000, and the cost of goods sold is UAH 70,000. Gross profit is UAH 30,000, and gross margin is UAH 30,000 ÷ UAH 100,000 × 100% = 30%. The store still has to cover other expenses from that UAH 30,000. You can determine the final profit after accounting for them.

For this exercise, calculate the margin separately for several products and categories. Use actual prices after discounts. Agree with your accountant on a consistent approach to VAT (value-added tax) in sales and cost of goods. If there were no sales during the period, this formula cannot be used to calculate the margin.

Margin is calculated on the sale amount, while markup is calculated on the cost. Markup = (selling price − unit cost) ÷ unit cost × 100%. This formula cannot be applied when the unit cost is zero. Keep both formulas beside your calculations so staff understand the metrics consistently.

Break-even: how much you need to sell to cover costs

First, divide expenses into categories. Fixed expenses do not depend directly on the number of sales within the chosen level of operations, such as fixed rent. Variable expenses grow with sales: the cost of the product, packaging, or a payment processing fee. Break-even point in units = fixed costs ÷ (selling price per unit − variable costs per unit).

Separate illustrative example: monthly fixed costs are UAH 60,000, the product price is UAH 1,000, and variable costs per unit are UAH 700. Each unit leaves UAH 300 to cover fixed costs. Break-even: UAH 60,000 ÷ UAH 300 = 200 units per month. Revenue at this volume is UAH 200,000, and variable costs are UAH 140,000. Together with fixed costs, they total UAH 200,000.

This calculation assumes the price and costs remain unchanged and that you sell one product. If the result is fractional, round the number of units up to the next whole unit. If the price does not exceed variable costs, the formula will not produce an attainable break-even point when fixed costs are positive.

For a store with a varied assortment, calculate break-even in hryvnias. First, for the expected sales mix, determine the share of revenue left after variable costs: (revenue − variable costs) ÷ revenue. Then divide fixed costs for the same period by this share expressed as a decimal: for example, 30% is 0.30. The calculation is possible when the share is positive and assumes that the product mix in sales remains unchanged. Recalculate the model if prices, discounts, or the sales mix change. Compare the required revenue with a realistic demand forecast: the formula does not confirm that your store will be able to sell that much. Variable costs may include more components than the product cost in the gross margin formula. Count each expense only once.

Plan cash by the dates money comes in and goes out

Profit for a period and available cash can differ. For example, goods may already have been sold on deferred payment terms, but the customer has not yet transferred the money. The difference between profit and cash flow explains why a sales report is not enough to plan payments.

Prepare a calendar for the next 30 days. For each payment, enter the date, amount, recipient, reason, and person responsible. For incoming funds, add the expected date of receipt and a note on how firmly it is confirmed. Mark separately receipts with a confirmed date and forecast sales. Also prepare a cautious version of the calendar: what will happen to the balance if a customer pays later or sales are lower than expected.

Calculate the balance in sequence: cash at the start of the day + receipts − payments = cash at the end of the day. The next day starts with that balance. A transfer between your own accounts does not increase the store’s total cash.

If the forecast shows a negative balance, determine the date by which you need to act. The owner can review a non-essential purchase, ask the supplier to agree to a different payment date, or clarify when the customer’s payment is expected to arrive. Plan contractual payments according to the agreed terms, and taxes and payroll according to deadlines confirmed by the accountant.

Mark separately owner contributions, loans received and repaid, and withdrawals for personal use. This will help you explain changes in the balance and avoid counting a loan as sales.

Match purchasing to demand and inventory

Before placing an order, check the specific product: how many units have been sold, how many are in stock, how many have already been ordered, and when the delivery will arrive. For clothing and footwear, consider sizes separately. The total stock for a model may hide a shortage of the size customers need.

Make a list of products in three groups: need replenishment, have sufficient stock, and need their purchasing reviewed. Add a reason and next step for each item. For replenishment, estimate how many units you expect to sell before the next delivery and during the period covered by the purchase. Account for products already reserved by customers and confirmed deliveries that will arrive on time. Determine the order quantity based on available stock, possible delays, the supplier’s minimum order quantity, and the payment calendar. This is an estimate based on your data and should be reviewed as demand changes. For seasonal products, check whether there will be enough time to sell them after delivery. For products with a limited shelf life, check how many you can realistically sell before they expire.

Inventory turnover: how sales compare with stock

Inventory turnover ratio = cost of goods sold for the period ÷ average inventory at cost. It shows how many times during the period the sales volume at cost equaled the average inventory.

Separate illustrative example: the cost of sales for the month is UAH 120,000, and average inventory at cost is UAH 60,000. Turnover is UAH 120,000 ÷ UAH 60,000 = 2 times per month. To determine the right turnover for your store, consider demand, delivery times, and product shelf life, and check whether stock will last between deliveries.

For an initial estimate, calculate average inventory by adding the opening and closing balances and dividing by two. If inventory changed significantly during the month, take more frequent measurements, such as daily. Determine the cost of goods sold and inventory value using the agreed valuation method. Use the same products and the same period for the calculation.

Compare a category with its previous comparable periods. Check product availability alongside turnover: fast sales can coincide with frequent supply gaps. If average inventory is zero, division is impossible—first find out why the value is zero.

Learn about customers’ specific experiences

Conversations with customers can help you better understand the circumstances behind their decisions. One-on-one interviews provide detailed feedback, although they cover a small number of people. Start with a few short, voluntary conversations and compare the answers with sales and customer inquiries to the store.

Ask about their most recent purchase or attempt to buy:

• What were you looking for, and what did you need it for?
• Which options did you compare before choosing?
• What information were you missing?
• What made it harder to choose or place the order?
• Why did you buy the product or decide against buying it?

Record the substance of the customer’s response without adding your own assumptions about them. Anonymous notes are enough for this exercise. You can check whether a recurring question about sizing is addressed by changing the product description, or compare a complaint about an item being unavailable with stock records. A few responses can provide a basis for testing an assumption; they do not represent the views of all customers.

Agree on actions and follow-up with sales staff

Write down who receives goods, checks prices, responds to online inquiries, hands over unfinished orders, and reports discrepancies. For each task, set a deadline and a way to confirm completion. Illustrative example: before the end of a shift, a sales associate adds unfinished orders to a shared list, and the next shift confirms it has taken them over.

Regularly discuss with each employee what went well, where a problem arose, and what support they need. This approach to performance discussions involves specific tasks, support, and clear deadlines. A store can start with a short weekly meeting.

Review a specific situation: which order was lost, at what step, and what the employee was expected to do. Demonstrate the required action, let them try it, and agree on a date to check again. Write down the agreement and share it with the employee.

When evaluating sales on different shifts, account for hours worked, customer traffic, product availability, and promotions. Alongside sales totals, consider order errors, returns, and completion of agreed tasks.

Check figures against documents and actual balances

Suggested exercise: compare accounting records with independent data as of the same point in time. The owner or a responsible employee counts cash, reconciles the account against the bank statement, and checks the quantities of selected products. For each area, keep the opening balance and the documents recording transactions that changed the balance.

1. For cash, compare the opening balance, receipts, disbursements, and the actual amount in the cash register.
2. For the account, check the statement, fees, and payments that have not yet been credited. The sale and the receipt from a payment service may have different dates.
3. For inventory, compare the recorded quantity with the actual quantity. Check receipts, sales, returns, transfers, and write-offs.
4. Record each discrepancy separately: amount or quantity, document, possible reason, responsible person, and review deadline.

Do not change a balance just to make the figures match. First look for a missing document, duplicate entry, incorrect date, or quantity error. If the cause has not yet been established, keep it on the list of open questions. The employee carries out this reconciliation separately from reviewing reports.

Test marketing changes in small experiments

Choose one assumption based on customer conversations or sales analysis. Illustrative example: adding sizing information to a product listing may help customers place an order. Before the test begins, write down what you are changing, what you are comparing it with, how much you will spend, and when you will review the result.

Comparing options is the basis of an experiment in an advertising campaign. In your own exercise, change one significant element at a time: text, image, or offer terms. At the same time, record changes in price, stock, and store availability that could have affected sales.

Choose a metric in advance: the number of paid orders, the share of visits that result in a paid purchase, or the amount remaining from sales after subtracting the cost of goods sold, other variable costs, and advertising costs. Use the same calculation method for both options. The last metric does not yet account for the store’s fixed costs. Views and clicks can help assess individual steps, but they do not in themselves confirm profitability. Account for returns and cancellations.

If there are few orders, record that there is not enough data. At the end of the learning month, you can decide on the next step: continue the test within the budget, change the assumption, or stop spending. Evaluate differences between two short periods with seasonality and other changes in mind.

Review expenses and purchasing in Торгсофт (Torgsoft)

To review receipts and expenses already entered, open the “Balance by financial analysis categories” report in the “Payments” menu. Use this data to prepare the payment calendar; enter future amounts and dates in the calendar separately. The report shows receipts, expenses, and balances by category for the selected period, store location, and currency. For meaningful results, employees must record financial transactions and assign them to the correct categories. The purpose of the report is described on the Torgsoft financial accounting page.

To review a specific purchase, open “Analysis of the profitability of an incoming invoice” in the “Analysis” menu, select the required invoice and analysis date, and click “Refresh.” The report shows sales of products from the selected invoice from its creation date through the analysis date: quantity sold, balance, returns, discounts, revenue, and profit based on cost. Instructions are provided in the official report help.

Suggested exercise: choose one purchase and list the products that sold, remained in stock, or required significant discounts. Check that the cost and documents are correct. If there were write-offs, check the “Include write-offs in profit calculation” setting: it determines whether they are included in the report. Compare the result with the supplier payment date and the payment calendar. Account separately for the store’s general expenses before assessing final profit and deciding on the next order.

A 30-day learning plan for store owners

The following is a suggested sequence of exercises. The days indicate the timing of learning tasks. If documents are missing or a significant discrepancy arises, first find out its cause and adjust the schedule.

At the final meeting, choose several actions based on the data you gathered. For each one, record the reason, the person responsible, and the review date. Keep the original calculations and exercise results so you can check what changed after your decisions.