Many entrepreneurs who are opening a dollar store forget that aggressive cost management is one of the keys to the success of their business.
They don't realize that cost management will be required from the time the very first purchase is made in preparation for opening their store and it includes every purchase that is made as long as the store is open and operating.
While low cost items may not warrant a huge investment of your time and energy, other costs will require continual scrutiny.
Those who are opening a dollar store often assume that major expenses should be examined as they prepare for opening a dollar store.
While they might look for methods to reduce the costs of store fixtures by buying used fixtures rather than new, they fail to understand the costs of merchandise and ways to reduce those costs as they create their first orders.
Those same entrepreneurs forget that cost management must occur on a daily basis.
When opening a dollar store the goal of achieving breakeven status will remain a high priority.
That means that costs such as labor must be measured against store sales.
While it is nice to have extra cashiers so the owner can be away after the store first opens, that likely will be a cost that store sales cannot cover at the beginning of operation.
Likewise it will take focused effort to reduce the cost of goods sold during the early months of operation.
Yet that is exactly what the entrepreneur must do after opening a dollar store.
Every means of reducing the cost of goods sold must be utilized.
It might be negotiating for lower prices, increasing quantities, negotiating freight costs, or buying similar merchandise locally.
All options to reduce cost must be examined.
In a tight margin business such as will be faced when opening a dollar store cost reduction is a high priority.
It is a high priority that must be started even before the store opens.
It will remain a high priority for as long as the store is open and in operation.
To Your Dollar Store Success!