Are you about to start a dollar store? If so you are probably counting all of the responsibilities you will face as a business owner. Among the most important will be handling payment of all the bills associated with your new business. And, there will be many. While it is nice to focus your attention on all the sales being generated, the reality is running this type of business demands careful budget management.

Budget management starts with knowing all the costs associated with your business. Even more important is to know the heavy hitters; those items that will make the biggest impact on your bank account. In this article I present 3 of the biggest costs most store owners face. Plan for these costs and you are one step closer to success with your business.

#1) Costs associated with the items you sell. Those running a dollar store must face the fact; dollar stores are high-volume businesses. And for most the number one cost is associated with replenishment dollar store merchandise. As you are calculating this one, be sure to include the actual cost of the merchandise AND the transportation costs to bring it to your store.

#2) Monthly rent/lease payments. For those who have no previous experience starting and then running a dollar store the amount spent on rent or lease every month can be pretty overwhelming. Be sure you have negotiated a deal that is in the best interest of your business. Consult with a commercial real estate expert if you need help negotiating. Be sure your attorney reviews all documents and proposed agreements prior to signing anything.

#3) Employee payroll expenses. If you are about to start a dollar store the importance of careful planning and scheduling of labor is about to hit you. With the tight profit margins and the huge number of costs, you cannot afford to spend even one extra dime on unneeded labor. You must know when employee coverage is required, and schedule accordingly. They must also know when having an extra employee serves no purpose.

Success with dollar stores requires knowledge of the costs and expenses associated with your business. Focus on minimizing and even eliminating waste. Don’t allow yourself to spend even one extra cent. After all, every extra penny needlessly spent is one less penny in your pocket. Make cost control your focus from the very first day you open for business and onward. While building sales is important, control cost is every bit as important as well.

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