There are many theories about the right size for your first dollar store. If you are opening a dollar store I recommend that you open the largest store possible. However, I also caution that it is critical to have adequate funding to properly operate a larger store.

Opening a dollar store requires more money than one would think. While the total investment in inventory will likely be smaller than opening a retail store in another product line, replenishment is a much bigger investment than would be expected. Not having backup cash available for replenishment merchandise can doom your store to failure.

The presence that a larger store makes can create a buzz in the community. The larger size allows the store to carry a much wider assortment of products. It is also possible to carry a wider range of items in both brands and features within a product category. This creates the opportunity for more sales.

Opening a dollar store with a larger retail sales floor positions the small entrepreneur to more successfully compete head-on with major national chains. Larger stores almost eliminate the competition associated with smaller locally owned dollar stores.

Opening a dollar store that is larger also opens the opportunity for complementary business operations. Case lot sales and wholesale distribution are both very possible.

With the higher volume that a large store must sell lower cost of goods sold is much easier to achieve. Lower cost of goods sold can mean more profits for the owner who is opening a dollar store.

If you are opening a dollar store consider opening the biggest store possible. Be prepared for the added work and the added investment. Know that with successful marketing and cash management a larger store can create lower costs and more profits.

To Your Dollar Store Success!