When opening up a dollar store, one of the top considerations you must make is the size of the store. There are several advantages and disadvantages associated with the store you will open up. While there might be pros in opening up a large store, there are cons as well and these have to be considered very carefully before making a decision.
- For a dollar store startup, you should recognize that a larger store will be harder to manage and management challenges are associated with all aspects of the business.
- You will need more employees than you would in a smaller store and you will have to train and supervise them.
- You will be ordering more merchandise and you will have more merchandising and stock work to do.
- A larger dollar store will also need a higher initial financial investment. You will need money reserve to maintain store operations before you can start making sufficient profits. Even the cash flow will require more expertise and more time. In addition to that, you will have more utilities and maintenance costs in a larger store.
- The larger the store you have, the higher the risks you will face. However, if you do analyze everything carefully and decide that it is manageable, then this can prove to be worthwhile and very profitable for you.