Partners lawrence and tyrell are partners in a small retail...

Partners Lawrence and Tyrell are partners in a small retail business They sell hats and T-shirts from a kiosk in a shopping mall. Recently they have been thinking about selling other items as well, but they cannot agree on what items to add to their product line. Their disagreements have caused the business to suffer financially. What advice would you offer Lawrence and Tyrell to help them work out their differences? What solutions would you suggest? Write down your suggestions for them.

Transcript

00:02 All right, so here we have some business owners, and they're trying to figure out what they should sell and what they should maybe not sell.

00:10 They can't agree on what i'm to add.

00:13 And so their business is suffering, so that's unfortunate, but it happens sometimes.

00:18 So what solutions would we suggest? well, i would suggest probably taking a step back and looking at their overall mission.

00:26 What are they trying to achieve with their products they're selling? and what do they do? how does what they sell achieve that mission? there's a, you know, you ask yourself, what are you not just doing it to make money, you're doing it to serve a purpose, like a mission.

00:46 Providing people with the best possible computer experience.

00:51 And therefore, how does their, what do they do that achieves that mission? we make really good computers.

00:58 Let's say they were like a competitor for apple or something like that.

01:02 And then they can look at brass tech or, just your money, what items do they sell more of? that's a good thing to consider.

01:12 If you want to sell hats and you're selling t -shirts and maybe one of the partners wants to buy and sell more hats, but they don't sell as much as t -shirts.

01:24 Look at those.

01:25 Look at those sales.

01:27 At the same time, which one makes the most profit? maybe they sell a bunch of t -shirts, but they only make a buck or two per t -shirt.

01:37 So maybe that might not be the most benefit, the most useful way to spend their time and effort selling these t -shirts where they get a small profit margin.

01:49 But then maybe they also sell, i'm just making stuff up here, maybe they're selling chairs, but they only sell one chair a week.

01:57 But within that chair, they maybe make 50 bucks on it, which might override or overtake their two bucks per shirt that they sell.

02:10 Also, again, kind of looking at their business as a big picture, what's their return on equity? and the return on equity, that's where you take your assets, your total sales.

02:23 It's called roe, roe...

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