Starting a dollar store in Florida can be lucrative, as many people enjoy shopping in discount stores that offer rock-bottom prices. Opening a dollar store with less that $5,000 can be a challenge, however, being cautious with your start-up spending, seeking out a low-rent location for your business and starting with a small inventory, you can open a dollar store for only $5000. Here’s how:
Step 1Search for a low-rent optimal location for your dollar store. Ideally, the location should be close to main roads and highways for drive-by traffic, get a good deal of foot traffic and be close to public transportation. Keep your rent to 10% or less of your start-up budget. Florida Business Brokers can help you find the perfect low-rent location for your dollar store.
Step 2Negotiate with the property owner for a low security deposit, such as one month’s rent. Once you’ve paid the rent and security deposit, put one month’s additional rent in your business bank account. Doing so will keep you out of financial trouble long enough to launch your business and generate cash flow.
Step 3Estimate your utility bills for the dollar store for the first two months. Do this by asking your new landlord how much the average utility bills are. Put three months’ worth of utility bill money into your business bank account.
Step 4Obtain a business license by contacting your county clerk or the department of licenses and inspections in your area. You may also need a resale permit to conduct retail sales and collect taxes. Business licensing will likely amount to less than 10 percent of your start-up budget, though fees vary per location.
Step 5Visit other dollar and convenience stores to learn what items are in high demand so you can decide what to order for your store. Typically, dollar stores sell a good deal of toys, health and beauty aids, snacks, household cleaners and tools.
Step 6Spend 40% or less of your start-up budget on inventory for your dollar store. To do this, you’ll have to compare vendors to get the best possible prices and start with fewer items than you would with a larger budget. Make deals to purchase in-demand merchandise from stores that have purchased too much inventory or are closing. You may even team up with another business owner to purchase items in bulk and then split the shipment. This will help you save money on your initial order. Surplus and salvage distributors can be good sources for cheap dollar store items as well.
Step 7Buy used store fixtures, display counters and cash registers.You can often find these at low prices when other stores are closing their doors. Leasing equipment also keeps your initial expenses low.
Step 8Purchase shopping baskets for your dollar store. They can be cheaper than shopping carts. Buying them used may help you stay within your budget.
Step 9Work in your dollar store yourself instead of hiring employees. This way, you can avoid payroll costs until you start to make a profit.
Find cheap ways to advertise your business’s grand opening, such as passing out fliers and posting them in public places. Create advertisements and hang them on door knobs in the surrounding neighborhoods. Ask friends and family members to help spread the word about your business. Hang balloons and a grand-opening sign outside your store on opening day.