Are you just beginning to wonder how to start a dollar store? Or possible you are about to actually undertake a dollar store startup? In either case you are likely searching for the keys that all come together to determine whether your store will be a success or not. You are probably looking for a magic formula that always works. While there isn’t any magic involved, there are some important components that when properly applied all come together to support your business success. Read on as I present 5 of those important considerations on how to start a dollar store.
#1) Store location.
We have all heard that location, location, location is the key to success. Often this is not about locating the most expensive retail store space. It is about identifying a location with great visibility and signage, high traffic counts, ample convenient parking, many prospective customers nearby and more. The space itself must provide adequate space to properly display your merchandise. Solid anchor businesses with other complementary businesses also factor into the equation. As you can see this critical decision comes with many, many variables to examine.
#2) Proper funding.
Those who know how to start a dollar store never go forward without proper funding. Invest the time to develop a business plan, including financials. Clearly determine the funding required to prepare for your dollar store start up and then to grow your business to profitability. Factor in a reserve just in case things don’t happen as you hope. Don’t let inadequate funding and attempts to camouflage this problem to become an obstacle to your success.
#3) Traffic.
That is right, when it comes to traffic, more is better. You need hordes of traffic coming to your store. In fact this is such an important consideration that you must carefully examine the ability of a potential location to generate traffic before making a decision about the location. Stack the deck in your favor by ensuring the traffic coming into your store is targeted. Targeted traffic includes those in your demographic. They are much more likely to be buyers rather than lookers.
#4) Great dollar store merchandise.
You must have reliable suppliers. They must be able to consistently provide high quality, in demand, low priced merchandise for your business. Always have the core products that your shoppers need and want in stock and on display. Always be on the lookout for the new, hot merchandise items just as they enter the marketplace. Establish a reputation for always adding new items. Establish a reputation of providing great values for the price.
#5) Customer service.
At one time no business could thrive when outstanding customer services wasn’t part of the equation. Those days seem to have slipped by the wayside. Here’s your chance to stand above the pack. Bring back the days of old fashioned customer service. Create a store where shoppers feel welcomed and appreciated. Make each visit memorable. Create an environment that draws shoppers back to your store time and again.
To your dollar store start up success!
Find out how you can open your own dollar store business.
Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer
