This article will teach you how to start a Dollar Store business.
Dollar stores sell all kinds of products and bring in all kinds of clientele, making it a winning business combination you should be excited about. Dollar store franchises have exploded with the downturn of the economy and every household in the U.S. looking for ways to save money on daily living items.
Step 1: Consider Your Local Market
It makes sense that if you’re trying to learn how to start a dollar store business, you want to set one up in your own community. However, before you can do this, you need to take the time to look around your city and see if dollar stores already exist.
If they do, this isn’t necessarily a bad thing, as long you live in a good-sized city. This means there is demand. You need to ask yourself, though, if this competition will be good or bad. Will you be able to position yourself somewhere where it will be more convenient for at least half the town’s population to come to you?
Step 2: Consider a Franchise
The next step in learning about how to start a dollar store business is considering a franchise. Companies like Family Dollar and Dollar General will set you up with a franchise provided you have the beginning capital they need. This will also come with other benefits in terms of getting free guidance.
However, if this isn’t an option or if you’d rather be completely in charge, it’s still possible to have your own store. If that’s what you plan on doing, keep reading as we cover the rest of learning how to start a dollar store business.
Dollar Store Franchise Opportunities:
OwnaDollarStore.com – $30,000
Step 3: Look into Suppliers
Now that you have decided to start your own store, you’re going to need your own supplier. The National Association of Wholesaler-Distributors is a good place to start for this. Retail trade magazines will be helpful too, as they regularly include lists of wholesalers you can contact.
Dollar Store Suppliers:
Step 4: Select Your Supplier
Call and speak to any supplier you’re interested in, but only if they offer the lowest possible average per-unit prices and an expansive product line. Ideally, you only want to deal with one supplier for your store and, obviously, you want them to be cheap. If you are a supplier, there are many things you need to consider, such as Third Party Risk. Both the buyer and the supplier need to be happy with the price. It’s important to make sure that you do consider the third party risk, as this is something which is really important for your business. If you need a little bit of extra help in sorting this out then you can use something like this third party risk management system.
Step 5: Get Retail Prices
Even though it’s called a dollar store, you don’t have to sell everything at that price. Instead, you can look into what your supplier recommends as a suggest price as well as what any local competition may be pricing it at.
As you can see, learning how to start a dollar store business isn’t too difficult. Yet, as soon as one succeeds, you can go out and start another.
Step 6: Market Your Dollar Store
A big part of learning how to start a Dollar Store business is marketing. Obviously, if you don’t handle this step, you may not reach your full potential.
- Create a Website
- Create a Custom Business Card – Vistaprint.com is a good place to start
- Attend local council meetings, chamber of commerce events, Rotary meetings, and other local gatherings
- Create a Flyer – Vistaprint
- Launch a Grand Opening
- Provide Promotional Events & Discounts
Let us know if we can help you with the start of your next business.