The core purpose of any museum is to carry out is mission. To do this it must have a positive fund balance or profit.. Profit is a measure of the success of this purpose. Qm² strongly believes that the central commitment necessary to make a regular profit is to be PROFIT DRIVEN. The questions below reflect the core commitments necessary for a museum to be profit driven and have a positive fund balance. Many museums coast during the good times; others focus on operating well on a day to day basis; both may neglect driving for profit.

1. We begin the year with a profit plan i.e. set goals for revenue, costs and profit for the year.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

2. The profit plan has been negotiated with all key managers.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

3. The profit plan allows for adequate capital reinvestment in the museum.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

4. The profit plan allows for significant profit sharing or raises to employees..
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

5. The above goals (#1) include an aggressive commitment to cost control/reduction.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

6. Our financial goals are broken out into monthly and weekly goals.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

7. Our monthly and weekly financial goals are broken down into each department's contribution.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

8. Each key manager knows his or her area's contribution to the overall financial goals each month.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

9. All key managers are committed to the financial goals and their part of the goals.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

10. Actual numbers are accurately measured and reported each month (week?)
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

11. Actual numbers are reported within five days after the end of the month.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

12. All key managers know the gap between actual and planned for the company and their area.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

13. Actual numbers are accurately measured and reported each month (week?).
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

14. Key managers are always aware whether we are on target for making a profit or not.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

15. All key managers regularly problem solve to close gaps between actual and desired results.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

16. Key manager meetings are regularly held which publicly acknowledge gaps.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

17. Monthly, key manager meetings solve problems to close gaps.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

18. When it looks like we will not achieve financial goals, we do not lower the goals.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

19. We aggressively identify gaps very early in the year and work to close them.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

20. Everyone knows how important the financial goals are.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

21. We have a back up plan in place if there are significant shortfalls.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

22. Our annual profit plan does not depend on the economy recovering or growing.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

23. Our annual profit plan is not dependent on donor angels.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

24. Key managers are strongly motivated to achieve our profit plan.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

25. We have a track record of achieving our profit plans.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

All up your score and post it here__________.
Scores below 100 show weakness in being profit driven. Below 80 and the weakness is significant.

Scores below 80 reflect a business that is not profit driven. If the economy and other uncontrollable factors are in alignment, the business may be making a profit, but the business is no being led towards regular profits.

This can lead to a nice income for the owners and marginally incomes/benefits for staff.
Review the above statements scored below 4 to help you generate an action plan for profit.

Actions to Drive Profitability (What Result?, How Achieved?, By When,?)

If you choose No Action? Read The 'E Myth' by Michael Gerber to find out the challenges your entrepreneurial business may face in the future.

Retail

26. We sell our courses in our museum shop.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

27. We have a strong book selection relevant to our collection and exhibits.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

28. We carry a broad range of jewelry that sells well.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

29. We carry paper products customized to our museum-i.e. posters, post cards, etc.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

30. We carry clothing with great, relevant graphics relevant to our museum.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

31. We carry a broad range of children's products for children or parents or grand parents to buy.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

32. We carry clothing and other practical items which promote our museum.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

33. We have proprietary products such as two and three dimensional reproductions.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

34. Store personnel are trained in customer services skills and attitudes.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

35. Store personnel are trained in to answer questions about the museum, its collection, personnel and exhibits.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

36. Store personnel are trained to answer questions about local restaurants, and attractions that compliment the museum.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

37. Our museum store manager is a part of our exhibition and curatorial functions.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

Web Site

38. We review relevant books on our web site and partner with a book seller lilke Amazon.com who fulfills the order and pays us a commission.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

39. We promote and sell memberships on line.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

40. We solicit and take donations on line.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

41. Most items we sell in our store are also available on line for purchase.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

42. As visitors exit the museum we offer to email them with a discount for on line purchases.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

Measurement and Assessment

43. We measure capture rate: # retail transactions/# visitors.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

44. We measure retail dollars per visitor.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

45. We measure retail dollars per customer.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

46. We measure inventory turnover: Cost of Goods Sold/Cost of Inventory.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

47. We manage our retail inventory to keep cost down and not out of stock.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

48. Everyone in the store knows these numbers.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

49. Everyone in the store uses these numbers to evaluate store performance and improve it.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

50. We regular review every category of items and individual items to decide what to stock or drop.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

51. We have an easy to use and powerful point of sale (POS) system to manage information.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

52. We have a system for detecting shrinkage of inventory.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

53. Complimentary items for donors, press and other staff uses are always recorded.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

54. We have a system for recording and paying sales tax.
__Strongly Agree(4) __Agree(3) __Neutral(2) __Disagree(1) __Strongly Disagree(0)

Having scored your museum shop on these items, What Actions to Drive Profitability would you take? (What Result? How Achieved? By When?)