Opening a Dollar Store Means Taking a Long-Term View on Finances

There are many out there who might be willing to tell you opening a dollar store is like having a key to an endless money vault. For a lucky few it might seem like that is exactly what happens. They open their store, boatloads of traffic arrive, and soon the profits follow. For the vast majority, the truth is after making an investment of time, sweat and money, there is more required. There is more work, lots of marketing and patience. Finally the fruits of all the labor begin to appear. In this article I present opening a dollar store means taking a long-term view on finances.

When opening a dollar store it is important to have adequate finances to successfully open your store. By that I mean you must have all of the cash required to cover initial rent and utilities. More important is you need the capital required to cover leasehold improvements if you are responsible for them. But there’s even more. You also need to have the finances to cover store fixtures and displays, initial merchandise, advertising and marketing, merchandise replenishment orders and start-up payroll.

Don’t expect this to be a get rich quick business. Those who make the right moves can find they earn a very solid income. For many sales and profits will exceed expectations. However opening a dollar store is like any other business venture. It takes time and patience to accomplish the desired results.

Focus on cutting every cost possible. While you need to be sensible in this arena, know the high-leverage expenses like payroll, rent and cost-of-goods-sold and stay focused on them. Remember to negotiate lease payments before you sign. Look for ways to minimize labor expense such as eliminating non-value-added tasks and reducing the amount of labor required to perform vital jobs in your store. Never be satisfied with your cost-of-goods-sold numbers. When you reach one level, set a new lower target and develop plans to achieve that target.

If you are opening a dollar store you must continually build sales levels. While many will assume all they need to do is throw open the doors to their store and jump out of the way as the stampede of eager buyers enters, that’s not the way it works for most. Sure you’ll have many value-oriented customers immediately, but you must develop and execute marketing plans to continually build your customer base. Never allow yourself to sit back and be satisfied. Do everything possible to bring more shoppers through your doors.

To your success opening a dollar store!

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