What’s All the Concern About Location when Opening a Dollar StoreSaturday, May 19, 2012 | 5:06 am
Sure they it’s just one word; location. Yet we have all heard when opening a dollar store the very success of your business rests on location, location, location. This single decision is seen as dictating not only whether you will succeed or not, but also the dollar store sales levels you achieve and ultimately whether dollar store profits become a reality for your business. In this article I present important considerations about the decision regarding your choice of location in greater detail.
· So many things enter into the decision about the right location.
You must examine every other aspect of each location under consideration. This examination includes size of the space under consideration, amount of fix-up required, traffic counts, visibility, neighboring businesses, the number of targeted shoppers in the immediate area, and nearby competition. Don’t forget to look at signage, entrance and egress, the number of parking spaces and even their relative proximity to the front of your store.
· Some second-tier locations can be successful.
However you must recognize you are dealing with a second tier location and know what makes it second tier. Then you must budget extra money for promotion and advertising. Just as you would when initially examining other potential locations, you must thoroughly collect information and then examine every aspect of the location.
· Seek professional help in collecting the data.
While the prospective landlord may provide some of the required information, look to other experts for help. Seeking the help of commercial real estate broker can save you many hours of data collection time. Look for a broker with knowledge of the area and businesses surrounding your proposed location.
· Analyze the costs, projected dollar store sales and dollar store profits as a part of your decision making.
There is simply too much at risk not to invest the time to analyze the prospects for success of a location before signing the lease. Be sure all costs are considered. Then input projected dollar store sale levels and even projected dollar store profits. Each location will have slightly different dollar store sales projections and even a small adjustment in monthly payments can make a huge difference to the projected annual dollar store profits for your business.
· Review your proposed decision with your attorney and accountant.
Seek their inputs prior to signing any paperwork. Often their impartial outside look will provide questions or concerns that must be answered before a good final decision can be made.
· If in doubt, keep looking.
Opening a dollar store isn’t a race against time. Be sure you have examined the best locations that are available, collected and analyzed the right data to make a sound decision, and that you have received input from the right experts before making a final decision. If for any reason you feel the data says this isn’t the right location, then keep looking.
To your success when opening a dollar store!
About the Author
Learn how you can Start your own Dollar Store Business.
Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer.
(posted in ideas for small business)
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