Be The Boss In Your Own Business

Almost everyone you know would say that running your own business and being self employed is the best thing that can ever happen. Then the one business people see as the easiest to start is a retail store and in particular a dollar store. Normally even relying on personal savings can be used to start this kind of business. It really looks like the ideal solution to the issues of job scarcity that is going on right now.

Obviously the biggest attraction here would be the fact that the owner is his own boss and gets to take home the lion’s share of the profits and may also choose to plow some of it back to grow the business. It’s all left to the imagination what the owner may do to boost the business.

Dollar stores being the best option to many are nowadays seen springing up in most places. They are the easiest to start with moderate capital layout required to make it work quite comfortably. The main aim is to make loads of cash.

If it is the dollar store for you, the next thing is to make a list of the items you need to stock. Go over this with a lot of keenness as you will not want to omit anything your customers would need. Again the type of stock will determine the kind of customers that get attracted to the store. This is the backbone factor for any such business. Here is how to do it.

There is what you call essentials that are the necessary grocery every home must stock up on so these will sell pretty fast. They consist of toiletries, soaps, and other cheap clothing.

It would be a big decision but you will have to add to the list of essentials by stocking some of the not very necessary but easy on the eye goods which when the customers see they find it difficult to resist.

The best thing is to go out and check what other shops around have. Another way is to do a small market research or survey by way of fliers to know what exactly they need.

With your list ready, the next move would be to go to the suppliers whom you have selected very carefully indeed as this is where another problem may lay. Get the ones with easy trade terms and affordable stuff. In a one dollar store, it is quite important to get the right prices and choice of goods.

Reasons to Consider Opening a Dollar Plus Store

For those examining the potential of starting a dollar store there are many, many strategic decisions to be made. Each of those decisions inevitably affects the final overall success of the business. Dollar store costs and ultimately dollar store profits ride in the balance as the final make-up of the business is determined. One of the most challenging decisions involves determining whether you are opening a dollar plus store or you will stay with the tradition everything is only one dollar format. In this article I will examine some of the reasons this might be the right time to open a dollar plus retail business.

Reason #1) As your dollar store costs continue to increase for everything from merchandise to freight, rent to payroll, and almost everything else, the tradition dollar only format doesn’t provide the room required for adjusting your retail prices to reflect the increases you are experiencing. It traps you into a set price and your dollar store profits are squeezed – potentially over time to the point where none remain.

Reason #2) Dollar plus format enables you to generate much higher average sales per item sold. In a dollar only format the sale price of a single item averages $1. Yet in the dollar plus format, your average sale can be much higher. Depending on your final decision regarding the types, brands and overall quality of items sold, your average sale price per item can amount to $2, $3, or even $5 or more.

Reason #3) If your average shopper purchases 6 items, your total sale is $6.00 in a dollar only format store. Yet in the dollar plus format, even if the average number of items purchased is reduced to 4 items with an average sale price of $3 your average sale is $12. In fact you could have a reduction to 2 items per sale and still sell exactly the same amount in gross sales. Imagine the reduction in dollar store costs associated with labor if you sold 1/3 less items through your store. Many of your other expenses will also drop based on less merchandise being handled.

Reason #4) In the dollar only format if your cost of goods sold is 60%, your gross profit is 40-cents per item sold. Maintaining the same 40% gross profit, but with dollar plus sales changes the number of items required to achieve the same total gross profits. In fact, your average gross profit per item on a $3 average sale becomes $1.20. Build sales in a dollar plus store and you have much greater leverage to build your dollar store profits as well.

All of these reasons combine to make opening a dollar plus store a viable format option worthy of consideration. There are no guarantees when you open a business. Do your research. Study the marketplace. Analyze the data. Make the decision that works best for you and your specific situation. Just remember to consider dollar plus as you go through the decision making process. Your dollar store costs and your dollar store profits ride in the balance.

To your dollar plus store success!

Small Business Help Through the Five Universal Funnel Laws For Businesses

Years ago Sir Isaac Newton observed “What goes up, must come down” and hence we now have the Universal Law of Gravitation. Today’s small business owners can apply similar principles to their own growth and viability through the Five Universal Funnel Laws for Businesses “What goes in, must come out!”

Universal Funnel Law #1 – Every business needs a plan of action. A strategic plan that clearly articulates “Who does What by When” and may require the assistance of a small business consultant.

Universal Funnel Law #2 – Every business needs prospects. A marketing plan is a proven way to reach and begin to develop relationships with future clients.

Universal Funnel Law #3 – Every business must have sales. A sales plan along with a sale model or process works to convert prospects into actual sales.

Universal Funnel Law #4 – Every business needs customers or clients. A customer relationship plan further develops loyal customers and serves as a source for ongoing referrals.

Universal Funnel Law #5 – Every business demands dollars. A financial plan records the results of all activity.

These Universal Funnel Laws operate together and if you are a visually thinker, like myself, lay inside each other. Universal Funnel Law #1 is the largest funnel as it holds the other four funnels. As your business expands, so do these funnels. The questions to ask yourself are: Do I know all Five Universal Laws? And, more importantly, do I have plans in place to maximize my daily efforts to that my actions are ultimately increasing my business dollars?

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Copyright 2005(c) Leanne Hoagland-Smith, M.S.

This article may be freely published. Permission to publish this article, electronically or in print, as long as the bylines are included, with a live link, and the article is not changed in any way (grammatical corrections accepted).