Checklist for Starting Your Own Dollar Business

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how to start a dollar store

These shops are known for their cost-friendly items, with most of their products selling for one dollar. Because these shops are inexpensive, they are one of the only retail establishments to profit in the past few years. According to Statista, from 2017 to 2021 there has been an increase of 5,000 dollar stores in the US. Now would be a great time for owners looking to create their own discount establishment in 2022! Don’t know where to begin? Here we’ll break down how to start a dollar store step by step.

Permits

When opening a dollar store, you do not need a special license, but your city or state may require some general business registrations. These include a business license, sales tax permit, Employer Identification Number or EIN for tax purposes and an Occupancy Permit. You may also need a Resale Permit so that you can conduct retail sales and collect taxes. Research the permit legislation for your specific city/state to ensure you have all of the proper documentation before opening your doors.

Location

For your discount enterprise, you’ll want to choose a central location near many roads and highways so customers will drive by. You’ll also want to be somewhere high in foot traffic, such as a town plaza or shopping center. When choosing a location, keep the rent in mind for planning your budget. A good rule of thumb is to keep the rent of your site at less than 10% of your start-up budget. When searching for an optimal locale, consider the competition within the area. You ideally want your store to stand out and not be only one of many.

Employees

Regarding what you need to start a dollar store, employees may not be vital, this also depends on the size of your space and how many customers you get. If you hire staff, remember you have to account for payroll costs and may be required to obtain certain types of insurance such as workers’ compensation. When hiring employees, you do not want to hire excess because that will present extra costs for your business. But at the same time, you will want to hire a sufficient number of workers to run the shop efficiently and successfully.

Inventory

Like any other store, when opening a dollar store, you must have sufficient inventory and reliable suppliers. For this retail establishment, it is best to obtain a wholesale supplier. Research different wholesale suppliers for the discount industry and choose one that is reliable and efficient. You can find a list of wholesalers at Naw.org. You will also have to decide what specific products you want to sell. Most discount shops sell a variety of products in the toy, beauty, baby, health, snacks, and cleaner categories, among others. You may want to start with the basics and see what competitors are selling, and then do some research on what the most popular current products are.

Equipment/POS System

Equipment should be one of your priorities when considering what you need to start a dollar store. Sellers must have reliable equipment to serve customers properly. One of the essential items to have is a good payment system. The National Retail Solutions Point of Sale System (POS) is a great option. This payment system has advanced software and useful features like a customer-facing display screen and inventory tracking. Check it out here. Other equipment you may need includes an open/closed sign, carts and baskets, bags in a variety of sizes, and a security system.

Insurance

When opening a dollar store, you must obtain certain types of insurance, just like any other small business. You will probably need the most common types of insurance, such as general liability, commercial property, workers’ compensation, and business interruption coverage. A list of the different insurance types you might want to invest in can be found here.

Marketing

The last step in the checklist for how to start a dollar store is a good marketing plan. There are many ways to market your discount shop. One simple yet effective way is through word of mouth, primarily if your shop is located in a small town. Additionally, to advertise your establishment, you can put up flyers, create a billboard or several in your local town/city, and spread the word on social media platforms. You can also contact your local news outlet and see if you can get an article written about your business in the local paper. Finally, you should create a grand opening with decorations and a banner to create excitement and get customers through the door. Now that you have everything you need to know, you are all set to start your own dollar business; good luck!

Start with NRS today!

Don’t fall behind by missing out on all that modern POS systems can do for your small business. Contact NRS today at (833)-289-2767 or [email protected] to learn more about how modern ingenuity and resources can help you maximize profits.