There are many things that you will think about when you are trying to make the choice between buying an existing dollar store and deciding to go through the entire dollar store startup process yourself. Some of the things you will think about are directly related to how difficult a dollar store startup will be for you to handle. These are typical considerations, but they should not be the only thing that you consider. Here are 3 important factors you should consider. Carefully examining them can really help you to see which option is best for your situation.
Consideration #1: Customer Base
With a new business you have to start from scratch. You have to build up your own customer base. With an existing business there is a customer base already there. You need to think about how many of those customers will stay once they learn the business is under new ownership. You may not have as much freedom to make changes because you risk alienating the old customer base.
With your own dollar store startup business you set the standards and people learn what to expect from your store so you make people feel comfortable from the beginning without worrying that you are making changes they won’t like. You need to decide if you can keep the existing customers satisfied enough to stay around or if you would be better off just starting fresh with a whole new customer base that you build yourself.
Consideration #2: Reputation
An existing dollar store will come with a reputation already established. This can be good or it can be bad. You have to think hard about the reputation you are buying along with the business. If the dollar store has a bad reputation then you face a challenge of trying to change that. With a new business you don’t have a reputation and you can completely shape how people think and feel about your store.
This is really something that has to be looked at on a case by case basis since you may run into an existing store that has an amazing reputation and would be a great choice over trying to build your own store and reputation. On the other hand you may come across a store that has a bad reputation and may be more hassle than just going through the dollar store startup process and building your own reputation.
Consideration #3: Profits
When you buy an existing dollar store you get some idea of the cash flow and profits. You can examine past records to see when the busy times are for the business. You can see trends in sales. You get a lot of information and can get a good picture of what to expect once you take over the business.
When you go through a dollar store startup you have no concrete idea what will happen. You can take an educated guess, but you are basing that on research. You are taking a huge risk because you do not know for sure that the business will make any money at all.
There are no guarantees in either situation, though. Even though an existing business is doing good does not mean that will continue once you own the business. Many factors determine success and some of those will change once you take over. With your new business, you have a lot of control. You have the ability to choose a high traffic location and to design the store in any way so that you can attract more customers.
Many things should be carefully measured before making your final decision on what you want to do. As you can see there are pros and cons for both buying an existing store and proceeding through the dollar store startup process to begin your new business. You have to decide what works best for your situation and what makes the most business sense for you.
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