subject: Don't Hurry to Open a Second Outlet when Running a Dollar Store [print this page] Don't Hurry to Open a Second Outlet when Running a Dollar Store
Let's face it, when a true entrepreneur opens a new business there is an eagerness to become a winner. Most will do whatever it takes to achieve profitability. Whether it is cost cutting, growing sales, and anything else, prosperity is the goal. Many who seek success with dollar stores fit this mold as well. They are not afraid of hard work. They recognize what it takes to start running a dollar store and then to take that store to ever-higher levels of performance. Over time as most of the low hanging actions to build sales have been implemented, these business owners recognize it is time to take bigger steps.
After all success with dollar stores demands ever-higher sales. It is then that those running a dollar store might start to examine adding a second business outlet to their business. In this article I will present some of the important considerations before making a final decision on this strategy.
Be sure the time is right
Think back to the time, effort, money, and at times frustration you went through to open your first store. Always remember all the hard work, frustration and money it requires to achieve ongoing success.
1. Finances must be right
Nothing has changed from the time you opened your first store. It takes money to lock down a location, make tenant improvements, to purchase gondola fixtures and store displays, to pay for dollar store merchandise, and to purchase store equipment and supplies. Then there are the reserve funds to cover for the unexpected.
2. Systems in-place
One of the big advantages to adding a second location is you should have all of the systems required for successfully running a dollar store already in-place. The systems should have been fine-tuned and can now be installed in your second location as well.
3. Key personal trained and successfully performing
Imagine how much more easily you could have started your first store had you been fully (Or even partially.) staffed with trained and experienced employees. If you have a core of employees to maintain the success of your first and add a second store, then you are ready.
There are other considerations if you are to achieve success with dollar stores. Focus on maximizing the performance of your current store first. It must be running smoothly and generating a solid profit. Then be sure to weigh the advantages and disadvantages of growing your current location against adding a second location. Each idea has its own risks and rewards. Make sure you are doing everything possible to minimize risks while maximizing rewards for your business.
