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Starting your own business is filled with risks, challenges and unexpected problems. Yet for those who take action and actually start there own business there is the potential for so many rewards. There’s the pride of ownership. There’s the freedom of being your own boss. There’s the potential to make big profits. The list goes on. For those opening a dollar store there are certainly plenty of opportunities for reward. Yet there are many opportunities to make mistakes as well. For example you could buy the wrong dollar store merchandise to open your store. Some of the mistakes will be close to fatal for the new business. Others will likely do damage to the business but not leave it beyond repair. In this article I present 8 mistakes to avoid when you start your dollarstore. Mistake #1 – Opening a dollar store without proper funding and financing. At one time there were many lucky dollarstore owners who started with a little cash, some credit plus a wish and a prayer. Well, the times when that strategy will work are gone. Dollar stores are retail businesses. They must be managed with intelligence and sound judgment. One place you should never compromise is when it comes to funding for your store. Know the costs and be sure that you are positioned with proper financing to make the business work. Mistake #2 – Poor location. We’ve all heard it before; Location! Location! Location! The need for a great location was never more important than in today’s economic environment. Fortunately there are commercial real estate specialists who can help you find the right location. Even more, they can provide traffic information, demographics data, competition information and more as a part of their service. Be sure to consult with a knowledgeable attorney before signing the final lease agreement. Mistake #3 – Assuming you don’t need to actively work the business. It sounds great to say you are the business owner. However sitting back and watching, or taking those long dreamed about vacations are in the future. Unless you have major capital and a large store with n excellent manager it is critical that you are present and actively working your dollarstore business. Your turn for leisure will surely come, but the time is not now. Mistake #4 – Overpaying for the location. If you are opening a dollar store be sure the lease agreement is fair for the location. Don’t get tied up in a multi-year lease with huge add-ons or increases. Seek start-up time at lower rates. Pay what that location with its attributes is worth and not a penny more. Mistake #5 – Poor store design. Take the time to create a footprint for your store. Make sure the traffic flow in the store is smooth. Make sure the fixture and department arrangement is conducive to sales of dollar store merchandise. Leave areas for impulse items and bulk displays. Place cash registers in a logical location. Mistake #6 – Overpaying for equipment and fixtures. It’s so easy to buy new. It’s so easy to go for top of the line. Yet you can save thousands in start-up expense by purchasing used fixtures when opening a dollar store. Purchase good quality fixtures that are the right height and width for the sales area. Mistake #7 – Not carrying the right dollar store merchandise. It’s important to maintain a store that is filled with the products your shoppers want and need. Never underestimate the sales you’ll achieve by carrying a great assortment of consumable products. Carry hot selling impulse items. Mistake #8 – Overpaying for merchandise. You may be in hurry when opening a dollar store, but really examine the prices you are paying for the dollar store merchandise you buy. Negotiate for lower freight charges. Don’t start out by filling your dollarstore with merchandise that you will be lucky to break even on after selling everything. To your dollarstore success! Want the best ideas to earn from your dollar store business? Check out "Tactics to Add Streams of Income to Your Dollar Store Business" at www.OpeningADollarStore.com.
Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer.
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