Every business faces challenges. For most retailers one of the biggest challenges is consistently growing store sales. Those who are opening a dollar store face the same test. Long term growth in sales determines the success of the store. In fact long term growth in sales is a key ingredient in determining survival of the business.
Most entrepreneurs who are opening a dollar store may be unsure of the right sales levels for their store. Further many don’t know where to look for information so they can establish realistic sales goals for their business. They ask what levels are too low, and what levels are too high.
One of the easiest and yet most effective methods for understanding what might be possible is to benchmark others in the industry. Benchmarking is simply examining aspects of businesses that are most successful in your industry. If you are opening a dollar store remember that benchmark data can be used for much more than just determining sales level targets.
Start by identifying 2-5 of the top performing businesses in your industry. Much of this data can be gathered from industry organizations or directly from data that is published by these firms. If you are opening a dollar store be sure that you gather this data as a part of your pre-opening work.
Be sure that you don’t ignore the best dollar stores in your local area as well. Often a local business owner will be willing to share not only basic business results, but also strategies that you can use to start your business on the road to achieving those same results. Many remember when they were first opening a dollar store and want to help others to avoid the land mines that they found the hard way.
If you are opening a dollar store be sure to establish long term goals that compare to the best of the competition. Follow that by establishing short term goals that move sales in that direction.
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