With headline after headline about business failures, employee layoffs running rampant and overall negative news everywhere you look, many are now asking whether it is even possible to achieve dollar-store business success and dollar-store profits in today’s economic environment. The answer is actually straightforward; it is yes. However, be sure to read on for some qualifiers to this answer.
Do your homework
You must do the right upfront homework. It doesn’t matter whether we are talking about good times or bad, every business needs a business plan. Your plan doesn’t need to be so thick and heavy that it is difficult to carry. It doesn’t need to include pages of information and details you will never use. It does need to be the result of research, thought, and analysis. It must include all the critical information required to create a roadmap for starting and growing your business. It must be a roadmap to reach dollar store profits.
Understand and meet the financial requirements
You must know the financial needs of starting and growing your dollar store business. More importantly, you must have the financial means to cover those requirements. Don’t just guess at the numbers. Work with your accountant to establish projections that include industry data. Don’t start by assuming you will beat the industry and achieve dollar store profits instantly. It will take time, effort and solid management.
Become customer focused
You must focus on your customers. There is competition in the marketplace. Those who succeed do so by knowing the exact needs of their shoppers. They then meet those needs dead on. But it doesn’t stop there. Those achieving success build a rapport with their shoppers that just keeps getting strong. Do the little things that make shoppers want to come back to your store time after time.
Focus on cost
You must focus on cost; specifically cost reduction. With the tight dollar store profits that come in this business, never lose track of your costs. This starts from negotiations for your chosen location to spending for improvements, fixtures, equipment, and displays to open your business. Payroll must be managed carefully too. As well as, becoming a bargain hunter who constantly searches out the very best pricing on the dollar store merchandise in your store. Never accept the status quo; always be looking for opportunities to improve the bottom line; your dollar store profits.
Build your sales
You must be willing to step out and market your business. Sales growth must happen for your business to thrive. While there will initially be some growth just by word of mouth that is not enough. You must take advantage of every opportunity to gain new shoppers. Many tactics such as placing flyers in shopping bags, adding banners to the front of your store, and working with other local businesses to exchange traffic are very low cost. Others like radio and television advertising require a fairly significant investment. Track the results and repeat those efforts that pay off with more traffic, sales, and profits for your business.
Build in success
Build your dollar store business with a focus on success in everything you do. Grow your employees by providing training. Offer feedback on a job well done. Grow your involvement in the community. Donate to worthwhile efforts. Become involved in local events. Make your shoppers happy to enter your store. Create a great shopping environment. This starts with a simple ‘hello’ as shoppers enter. Add the products that are in demand. Thank everyone for coming into your store whether they are buyers are just lookers. All of these powerfully combine to create an environment of success.
To your dollar store business success!