Accidents Will Happen

Q: A customer fell in our store a few weeks ago, and is now suing both the store and one of our employees for negligence. She claims that the salesclerk ignored her complaints when she said she was dizzy. I wasn't there, and don't really know what happened. Is there anything I could have done to avoid this crisis?

A: There's little you can do to prevent a lawsuit — warranted or unwarranted — against your business. You can, however, be diligent in documenting events that may lead to legal action. This might provide some protection for both the shop and any employees named in a case.

Prepare a report form to have on hand whenever an incident occurs — even if your store clearly is not at fault. Situations like someone falling on the public sidewalk in front of the shop, an employee cutting his hand on broken glass, or a customer having a heart attack on store premises should all be documented in such a report.

Instruct employees to write down what happened, the date and time, and the names and phone numbers of everyone involved (including witnesses). Include details such as whether the individual complained of pain, if first aid was provided, and whether 911 was called. Keep this report on file for several months, even if you don't hear anything further about the accident.

Most importantly, try to avoid accidents by regularly inspecting your store premises. In addition, every store should be equipped with a first aid kit, and ideally should have someone on duty who knows CPR.

Whenever there has been an incident involving a customer, you or your manager should follow up promptly with a personal phone call or a get well note. (If you fear there might be legal action, you might check with your lawyer first to see what you should or shouldn't say.) These thoughtful touches, together with good care at the time, may go a long way towards preventing hard feelings — and an expensive lawsuit.

Q: When I opened my first toy store two years ago, I had plans to open branches in at least three other markets. Now that I have this store running smoothly, I'm ready to take the plunge. I know I'll need a manager for each additional store. Any advice for finding good personnel for my expansion?

A: The success of your new branch will depend on hiring the right person, so you want to select the manager very carefully. When you hire a manager, you are in some ways taking on a business partner. The individual you select will be the public face of that store, and will be in charge of many of the day-to-day operations you now handle. Look for someone who shares your values and temperament, and is as excited as you are about your store concept. And be prepared to pay a good salary if you want someone who is willing to put in the hours and effort necessary to run the branch store.

Your best source for a store manager may be a current staff member who is willing to relocate, or a sales representative interested in getting into retailing. In addition to placing local help wanted ads, try networking through your suppliers, the leasing agent, or businesspeople you know in the market area. Take great care in screening candidates and checking their references. A dishonest manager is as bad as a dishonest partner.

If you think of your branch manager as a partner, you'll realize that you need to delegate some real responsibility to this individual. Allow him or her to oversee hiring, and have some creative input into store layout and buying decisions. The more ownership the manager feels in the shop, the better. You'll probably want to include some financial incentive for the manager too, so that he or she is rewarded when the store does well.

Before opening a new branch, give some thought to standardizing your product mix, packaging, and other elements that make up your "brand." Take time to also standardize your procedures, so that all the stores are run in a similar manner. Start all your managers with training at the original store so they can get a real feel for your vision before setting out to replicate it.

You'll undoubtedly also want to set up an accounting system that gives you regular reports of what's selling, as well as overall sales figures. Setting sales goals will help you measure each branch's success. But don't limit your involvement to checking the bottom line. Monitoring customer and employee satisfaction is just as important to determining if a new branch is functioning successfully.

To communicate with your new managers, an Intranet system would be ideal — or at least regular e-mail communication and perhaps a newsletter that goes to the employees of all the stores. Video or Web cam conferencing can help managers feel more in touch, but there is no substitute for visiting each branch regularly. Don't limit your visits to a few hours once every month or two. Plan to spend some real time in each store, encouraging the manager, and getting to know the staff and customers.

When you have more than one branch up and running, allow for your managers to meet with each other and to visit the "home" store occasionally. Sharing the managers' excitement and successes, as well as their challenges, will help keep you in control of your new retail empire.