f you are thinking about starting a dollar store one of the biggest challenges is trying to forecast the future. You must examine options and then forecast all of your startup costs, and then how much it will cost to keep your store open and properly running during those early months. On the other side of the coin comes the forecast of sales and profits. When you move from what might be – to what is really happening, there will be times when a quick reaction is required to right things.
It is important to think about the best options and to not simply guess what you should do. By examining the daily performance and accompanying indicators for your business the best options should become apparent. However, if you are unsure of the right action and cannot afford to bring in an expert to examine the situation, then look at two of your biggest ongoing costs – payroll and wholesale products. A surprisingly small adjust can make a quick positive impact on cash flow.
When starting a dollar store be sure to match staffing levels to store sales. However when there are big changes, allow staffing growth to lag behind any sales increases. After all, a positive sales jump may only be temporary. By allowing a little time before adding staff, you will be more positive about the sales jump being a real indicator of long term growth. For more details, please visit these sites:- www.bunnydirectories.com
Likewise when there is a drop off in sales, immediately start monitoring sales more closely. Do not allow a long delay to occur before making staffing adjustments. One easy adjustment is to reduce or even eliminate staffing from opening until the traffic numbers increase later in the morning each day. During this slower opening timeframe you can cover all sales transactions yourself without needing any additional help. Schedule coverage so help arrives as the number of sales transactions starts to grow each day. Just covering 2-3 hours per day, 5 days per week equates to an immediate drop in payroll of 10-15 hours per week.
Need more quick cost reduction? Place your purchasing of wholesale products on a tight budget. Eliminate all non-core product purchasing every-other-week. Keep the weeks you allow non-core product purchases to previous dollar levels. Following this process will allow you to maintain supplies of the critical most-in-demand products, and also still have a good selection of the non-essential products as well. Yet you will quickly see lower wholesale products spending.
When starting a dollar store be prepared for both the ups and downs of the business world. If sales decline and you need some cash flow relief examine staffing levels immediately. You can make simple adjustments without impacting your shoppers. Even more spending reduction can be achieved by putting a firm lid on your spending for wholesale products. Keep the core consumables shoppers must have, and reduce spending on less critical items. Be sure to maintain a full appearance by using shorter peg hooks, spreading products, pulling all merchandise forward on shelves and peg hooks, and by breaking down larger displays and placing the items on gondolas. You can weather temporary cash flow issues without telegraphing things are tough to your shoppers. Then go to work to understand and address the root cause of the decreased sales levels. Effectively handle this and staffing levels can return to previous levels, while purchases of wholesale products can also resume.