Cash Is King When Opening A Dollar Store
Author: Bob Hamilton
In this day and age it's important to know exactly what is required to finance the preparation, opening and initial stages of a new business. Opening a dollar store is no different. It is important to have clear, accurate dollar store cost information developed. It is also important to have projections for expenses as the store begins operation. This is not the time to guess about the amount of cash required to start and carry your new business during the early days until profits start rolling in. This is a time to be conservative and to be well prepared for whatever lies ahead.
Don't allow yourself to ignore the risks that your new business will face. Don't shortcut efforts to clearly understand cash your requirements. Don't fail to assemble the right amount of cash to cover everything. After all, starting a new business is difficult enough without also facing cash shortages during those early start-up stages. In this article I present 4 tips to help you prepare and then start your new dollar store business.
Tip #1) Develop accurate projections of both your dollar store sale levels and dollar store cost before you open your new business. Seek help from an expert in developing those numbers. After opening a dollar store refine those projections as you gain a real-life understanding of exactly what the business numbers say.
Tip #2) Have cash in-place to cover initial dollar store cost as well as projected costs. With projections developed, next be sure you have the cash to cover them. Better yet, make sure you have more than enough cash to cover them when starting your dollar store.
Tip #3) Hold a reserve account with cash to cover unexpected requirements. Virtually every new business is faced with unexpected expenses. It might be sales running lower than anticipated. It might be an unexpected emergency that must be handled immediately. It might even be adding inventory to cover business growth at faster than anticipated rates. All will require cash from your reserve.
Tip #4) Maintain a cash reserve well into the future; even after your dollar store business is generating a profit. Don't relax and allow your reserve to dwindle away just because things are going better than anticipated. Maintain a cash reserve for your business for as long as the business is open and operating. After all you never will know when having a reserve fund to cover unexpected dollar store cost makes all the difference to your success.
To your success when opening a dollar store!
About the author: Learn how you can Start your own Dollar Store Business at www.openingadollarstore.com. Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer.
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