Many who open a dollar store don’t realize the complexity of the business they are entering. They get in and things flow pretty smoothly. Now things have changed. The economy is slowing, which has also slowed sales. One the other hand, merchandise and transportation process are skyrocketing, which is pressuring already limited profit margins. For many who are in trouble there seems to be no-one to turn to for help. This article provides options to consider as you work your way through the troubled times your business is facing.

Start by clearly understanding the problem. Be very clear on exactly what is causing the problem and what the impact is on your business. A simple statement like my sales are down will not do. You need details. Is the problem the cost of good sold? Is it a decline in sales? Is it due to increases in expenses? Have you changed the way you operate your business with unexpected disastrous results? Or is your problem a combination of several of these? Or is it something else?

With the problem identified it is time to move on to clarify the details? What changed to cause the problem? If something else caused the problem then you have not gotten to the root cause. Keep digging until you unearth the real problem your business is facing. With that done, you need to quantify the impact that it is having. If sales are down; how much? If costs are up; how much?

Now you have the problem identified and the impact quantified. It is time to look at methods for resolving the issue. This is a good time to seek help from your customers, your vendors and your employees. You don’t need to disclose the fact that you are having a problem. Yet you can solicit a brainstorm list of potential solutions from all of these groups. Don’t forget to add your ideas to the list as well.

Next move on to narrow down to the best options for addressing your problems. If it is a sales problem, don’t try one solution at a time. You can quickly and easily implement several low/no-cost sales-enhancing changes at the same time. Normally I would suggest doing it one at a time, but if your business is in trouble making 2-4 low-cost changes to enhance sales is a good thing to do. Cost cutting might be better done one step at a time. Possibly you work with your landlord for temporary rent relief while someone else implements a part-time sign holder at the corner of the parking lot.

The important thing is that you must recognize there is a problem. Get to the true root cause. Collect potential solutions. Narrow down to the best options. Implement and collect results data. If you the change isn’t big enough, repeat the process. Be aggressive. You are working to save your business!

To Your dollar store business success!

Are you interested in opening you own dollar store? Check out “A Beginner’s Guide to Opening a Dollar Store at http://www.OpeningADollarStore.com

Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer. http://www.marketingsuccesscenter.com

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