Those starting a dollar store often face great difficulty finding the perfect spot to open their new business. Some locations are perfect, except for the almost impossible task of getting into the parking lot, or being required to walk 1/2 mile from the designated parking to your front door, or shoppers never being able to find a place to park at all when they enter the parking area. In other cases these criteria are not the problem. It is a location that is way too small, or way too big, or it is hidden in a dark corner at the back of the building. So what are some of the important considerations when you are seeking the perfect spot?
Specifically, what should those starting a dollar store do if the target spot is too big? In this article I provide four options to consider:-
- If you are talking about only a small excess area and your rent is low enough, consider building a temporary wall until sales and finances will support ‘moving the wall’ to allow for display area growth. Make sure the finances work. Make sure you have an attractive temporary wall that can withstand the traffic it is about to see.
- Ask your landlord to divide the space down to an acceptable size. Complete this negotiating before you sign any paperwork. Don’t make assumptions which may turn out to be wrong and face a huge extra monthly financial burden you cannot handle.
- Sublease a portion of the location. Once again negotiating this with your landlord before you sign any paperwork is recommended. An even better strategy would be to line up a sublease tenant before signing as well.
- The default is of course to pass on the location entirely and move on to find one that is the right size for your business.
If you are starting a dollar store never jump into a lease or rental agreement until you know it will work for your business. Don’t allow pressure, frustration or the emotions of the moment to make you feel as if you must act now. Take your time and collect all of the data you need. Come up with a plan for your proposed new store. If there is excess space know exactly how you will handle it. After all, just leaving a portion of the sales floor empty will hurt sales. Develop your plan and negotiate the details. Then when all is well you can move forward with opening your own dollar store.