subject: Get Your Financial House in Order Before Starting a Dollar Store [print this page] Have you ever noticed how almost every small business opportunity seems to come with a cheering section that continually pushes the idea that riches are just around the corner. The same is true for those opening a dollar store. There are those who claim you can just fill the shelves and then open the doors and riches are yours. Well, there might be a lucky entrepreneur who periodically finds this is true. Yet for the vast majority of those starting a new business there is lots of hard work, plus investment and time required before there is even a hint of profit.
In fact the best advice for those starting a dollar store is to hope for the best and yet always plan for the worst. They should expect circumstances and challenges to be more difficult than they ever imagined possible. They should set themselves up to weather the worst so they can eventually see the rewards of their planning and hard work in the future. In this article I present get your financial house in order - advice everyone considering a small business opportunity of any type should heed.
Reserves for cash flow
Establish a reserve fund to support your business during the early stages. This fund needs to be large enough to cover everything until consistent dollar store profits start flowing. When starting a dollar store be sure you don't short-cut this requirement by assuming you will be able to outperform others by achieving early profits or by under-estimating the costs associated with preparing, opening and operating you store.
Reserves for business growth
Those starting a dollar store soon discover that marketing pays off. The return is fast sales growth. But it takes money to fuel growth as well. Labor costs grow, the dollar store merchandise requirement expands as more and more merchandise must be in the pipeline to keep the shelves filled. Be sure you are prepared with a reserve that can support these costs and others as well.
Reserves for the unexpected
There is one thing about business - the unexpected happens. It might be broken doors or windows that are your responsibility. It might be an increase in costs, or even unexpected costs you forgot about entirely. It might be a temporary closure of the only street leading to your store or a snow storm or wind storm that temporarily shuts down business. You don't know what the unexpected will be, but do prepare by having a cash reserve to help you weather the challenge.
Get you financial house in order before undertaking any small business opportunity. Expect the best, but plan for the worst. Develop a plan to deal with unexpected expenses. Remember that it is always better to have some unused emergency funding than to be in desperate need of cash just to keep your business open and operating!
To your success with your dollar store small business opportunity!
Get Your Financial House in Order Before Starting a Dollar Store
