Do not Believe All the Hype when Opening a Dollar Store

People will try to sell you all sorts of businesses nowadays, from work-at-home opportunities to real brick-and-mortar businesses.  Since many people are trying to save money by shopping at dollar stores, someone may make you a tempting offer saying you will not need that much cash when opening a dollar store.

Do not let this hype lead you down the wrong path.  This is not true in most cases, like with any business you will need cash for many different things.

Location is everything when opening a business like a dollar store.  If you do not choose a great location, then sales will likely be low in the future.  However, getting a great location probably means that you will have to pay more on your lease payments every month.

The particular building that you decide to move into will also determine how much money you will need to invest.  Obviously, larger buildings are usually more expensive.

You certainly can't go about opening a dollar store until you have found a supplier to get merchandise from.  Merchandise costs money, so you will need to have enough to have a grand opening complete with fully stocked shelves.  Right after the grand opening is when you will probably have to place a replenishment order, so you will need more money for that as well.

Unfortunately, displays and shelving typically do not come with your dollar store merchandise unless you're buying something like greeting cards.  Therefore, you will need to purchase gondola shelving and other displays before opening your store.

Who is supposed to run the store?  Hopefully, you will hire a few workers to help you out.  They certainly will not do it for free though, so you will need money to pay them, even before you really start turning a profit.  You might be able to get a few friends or family members to help you out in the time being.

Your employees will need equipment to do their job correctly.  You, the manager, will also need office equipment to do yours.  These are all items that will need to be factored into your starting budget.

Of course, you can't forget about marketing.  You will certainly need to market your store if you actually want people to show up for your grand opening and in the future.

As you can see, there are certainly upfront costs for opening a dollar store.  Do not believe the hype if someone happens to tell you any differently.