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.
Residual Income Investments
Two financial terms that are often times confused with one another are residual income investments and passive income investments. The different between these two terms is fairly easy to explain. First passive income is generated without any effort, or very little effort, from the investor. On the other hand, residual income is generated from the efforts initially invested by the investor.
Real estate investing can produce both residual income and passive income. If you want to make residual income investments in real estate then you can buy a property and then sell it with owner financing. This means that instead of making the buyer get financing through a bank you will agree to carry the contract and they will then submit to you monthly principal and interest payments. These payments are considered residual income. On the other hand, if you want to generate passive income from real estate investments then you can invest in trust deeds. Trust deeds are basically private mortgage loans. This investment activity is passive because you don’t have to actively participate in the management of the account to make money.
If you are interested in a business opportunity to make residual income then you can look at entering into a sales company that offers residual income on the sales made by the people that you sign up under you. For example many door-to-door sales companies pay their sales team a commission on what they make as well as a smaller commission on the amount of sales generated by all of the people who were signed up by the salesperson. Passive income can also be generated from business opportunities. However, for tax purposes the passive income cannot be derived from the active participation in a business, nor can it be derived from interest, capital gains, or dividends.
Real estate investing can produce both residual income and passive income. If you want to make residual income investments in real estate then you can buy a property and then sell it with owner financing. This means that instead of making the buyer get financing through a bank you will agree to carry the contract and they will then submit to you monthly principal and interest payments. These payments are considered residual income. On the other hand, if you want to generate passive income from real estate investments then you can invest in trust deeds. Trust deeds are basically private mortgage loans. This investment activity is passive because you don’t have to actively participate in the management of the account to make money.
If you are interested in a business opportunity to make residual income then you can look at entering into a sales company that offers residual income on the sales made by the people that you sign up under you. For example many door-to-door sales companies pay their sales team a commission on what they make as well as a smaller commission on the amount of sales generated by all of the people who were signed up by the salesperson. Passive income can also be generated from business opportunities. However, for tax purposes the passive income cannot be derived from the active participation in a business, nor can it be derived from interest, capital gains, or dividends.
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