How to Start a Dollar General Franchise Business in 2021

How to Start a Dollar General Franchise Business in 2021

 

Have you ever considered how to start a dollar general franchise business in 2021? What are your investment plans? How do you intend to earn passive income? Is how to start a dollar general franchise business part of how you can become your own boss? One of the easiest and best businesses to start is a dollar general franchise business. A dollar general business is a convenient shop that provides services to budget conscious shoppers. In the UK, the dollar general franchise business, is called the one pound shop, where you buy different products, with most of the products selling for one pounds or one dollar.

The dollar general franchise business has become part of our daily life and is not such that will be fading out very soon. There will always be people in the community that would not want to go to the big shops, but will rather want to do their shopping in the local dollar shop, either because they are very budget conscious or they know that the dollar shops helps the community to thrive.

So if your interest is to start a dollar general franchise business, which you should no doubt start, we have got you covered, as we will be providing massive value that will help you achieve that. In this practical guide, we will be highlighting how to start a dollar general franchise business in 2021 and beyond. According to research findings, there are over 15,000 dollar general stores in America alone, selling over 10,000 American products  and has generated over $21 billion. So what is stopping you from starting your own dollar general franchise business so as to take your share of the American pie?

So to get you started with your business, we will be looking at the following steps you must take on how to start a dollar general business franchise, and your business should be up and running in no time if you follow through with the steps.

  1. Register your business
  2. Do a market research
  3. Decide on a business model
  4. Obtain permits/licenses/insurance
  5. Open a business bank account
  6. Choose a location
  7. Hire a team
  8. Find a supplier
  9. Order products
  10. Market your business

 

  1. Register your Business

No matter the state or country where you live or the type of business you want to start, the first important step is to get your business registered, as you will not even take yourself serious if you don’t have your business registered. Every state or country have different operational guidelines when it comes to business registration. There are basically three forms of business legal structures, that your business registration will fall under, which are sole proprietorship, limited liability partnership and Limited Liability Company.

To get started with the process of your business registration, you should contact the company house of your state or country and get your business registered, but it is advised to contact a lawyer for professional advice on the best form of legal structure that is best suited for your business, if you cannot make the decision on your own. It is however, recommended that you register your business as a limited liability company, as this form of business legal structure, offers some form of protection against personal loss of property in case of business failure.

Once you have your business registered, you should proceed to the revenue board to register your business for tax purposes, you should also apply and obtain your Employer Identification Number (EIN). Your business needs the tax registration for the purposes of remitting taxes when your business becomes operational, while the EIN, will be needed for opening of business bank account, and the EIN will also be needed for tax purposes, as some state or country, may require your business to collect sales tax.

  1. Do a market research

In as much as you want to start your dollar general franchise business, it is very important that you have an idea on the type of business and how it is run. So once you have registered your business, it is then expected that you do a market research on the dollar general franchise business system so as to understand its operations. With the market research, you should be able to find out who your customers will be? What their purchasing power is? How much will you be charging your customers? How many competitors for your types of your business are out there? How will your business will be different from others? The answers you will get from the questions will form the basis, upon which the decision on how you will run your business will be made, and how detailed your market research is, will determine how successful or otherwise your business will be.

  1. Decide on a business model

Once you have sorted your market research, the next important key step is to choose a business model for your dollar general franchise business. There is the option of either choosing to purchase a franchise from an existing business or to build your own dollar shop from the scratch. But since our focus on this practical guide is franchise business.

It is better and easier to purchase a franchise, than to build your own shop from the scratch. If you for instance decide to choose the option of purchasing a franchise, which you should, you can achieve that by simply searching online for franchisers such as Dollar General or Family Dollar, and you should then apply to become a franchisee, and once your franchise application is approved, you can use the benefit of their training and brand recognition to scale your business and become profitable within a short period of time.

  1. Obtain Permits/Licenses/Insurance

Your dollar general franchise business needs certain permits and licenses to operate, but the nature of permits and licenses needed will depend on your state or country. It is then important that you reach out to your state chamber of commerce or any other relevant trade associations to find out all types of permits and licenses that your business will need to operate.

One of the permits your business will need for instance, will be a certificate of occupancy permit. Your dollar general franchise business needs a shop location to be operational and a certificate of occupancy will be needed for the location. Your business in some states or country will also require that your business collects sales tax, and if your business is to collect sales tax, you must apply for the permit or license that will enable your business do that. It is therefore required that you contact the relevant authorities to find out all the necessary permits and licenses as apply for them accordingly.

After you have applied for the required permits and licenses, the next most important requirement for your business, which is a non- negotiable, is the insurance policy for your business. There are basically two types of insurance cover your business must operate with, which are general goods insurance and workmen’s compensation policies. But it is very important that you contact an insurance broker for advice on the best form of insurance cover that is best suited for your business.

  1. Open a business bank account

You may be tempted to operate your personal and business accounts as one, you should not fall into such temptations. It is therefore important that you open a business account for your business. You should contact your local bank to find out the types of business bank account that is suitable for your business. There are different terms and conditions attached to each type of business bank account, it is expected that you check out the terms and conditions for each type of business bank account and go with the one that is fit for your business.

The advantage of opening a business account for instance is that you can use it to apply for a business credit card, which can serve as a line of credit for your business. Please bear in mind that the Employer Identification Number (EIN), which you applied for at the point of registering your business will be needed at this stage for the opening of the business bank account.

  1. Choose a location

In following through with on how to start a dollar general franchise business, it must be noted that your business will need a location or a store to operate from. It is then expected that you look for a location for your business. The location however, must be such that will be easily accessible to their prospective customers. The location you will choose, will be either a one that is already built which you will rent or one you can build from the scratch.

So look for a location where you can either rent an existing shop or build a new store. It should also be noted, that your franchisor, may already have a location, so it is important that you find out what options that comes with the franchise agreement.

  1. Hire a team

Your dollar general franchise business will need employees to run successfully, so once you have chosen a location that is suitable for your business, it is then important to set up an employment system. How will you hire your employees? How much will you pay them? Will you pay them with cash or bank transfers? How will you replace employees immediately when they leave for instance? This are the system that you need to put in place, so as to get your dollar general franchise business operational without hitches.

  1. Find a supplier

As a dollar general franchise business owner, it implies that you will be selling goods and products to meet the needs of your customers. Finding of suppliers if you are going with the option of franchise will be to find a franchisor that you can meet up with their requirements, or if you are building your store from the scratch, you will have to find suppliers, which will supply products to your store.

  1. Order products

Once you have reached an agreement with your suppliers or franchisors, it is now time to order for products, so as to set up the store. Ordering the products will help in setting up the store, by arranging the products, so as to display them in a form that will be appealing to customers when they walk into the store. Ordering of the products will also help you in finding out the quality of the products, so as to know what your customers will be expecting. But since it’s a franchise business, you already have the assurance of the brand name and the quality of products that the franchisor will be supplying to your store.

  1. Market your Business

It must be stated that no matter how beautifully set up your business is, without marketing your business, nobody will know about the business. Hence it is expected that you market your business. When it comes to marketing your business, you have to be creative, by adopting innovative marketing methods and not just the traditional marketing methods.

If no one knows that your franchise dollar store exists, they are not going to buy anything. One of the key marketing activities you can embark on is to an event out of your grand opening, as this will help to spread the word about your new business. You can then also consider placing ads in local newspapers or on the town bulletin boards. Other available marketing channels to promote your new business is to for instance register your business with Yelp and Google and encourage your customers to leave positive reviews. Services like Google, Facebook and Instagram can also be used as they provide advertising platforms that will help your business get noticed for a small.

You can also adopt any of the following steps:

  • Flyers
  • Signage’s
  • Friends and family networks
  • Referrals
  • Word of mouth
  • Website/blog

Estimated cost to start a Dollar Store Franchise

Starting your dollar general franchise business will generally requires spending in the following areas.

  • Leasing property
  • Office equipment
  • Signs and fixtures
  • Advertisements and promotions
  • Inventory
  • Salaries for workers
  • Cost of insurance
  • Ongoing royalties

According to research findings, Initial startup costs begin at about $25,000 to $50,000 and range up to $300,000 or more. That covers almost everything you will need to get started, including inventory, lease, fixtures, signs, office equipment, franchise fee and marketing.

For instance, if you decide to go with Liberty Dollar franchise, they offer a complete startup package ranging from about $25,000 to $275,000, depending mostly on the square footage of the store. The package covers inventory, freight, furniture, fixtures, training and access to the company’s buying network, among other things.

On purpose, we have not covered how to raise funds for your dollar general franchise business, if you want to find out how you can raise funds for your new business, you can read this post here: https://freemoneydomain.com/how-to-get-a-grant-for-your-start-up-in-2021/

Final thoughts

We have through this practical guide, provided massive value on how to start a dollar general franchise business, and we are confident that if you follow through with the steps, you should have your business up and running in no time.

But the question again as we will always ask, are you willing to start your own dollar general franchise business? Do you have want it takes to be successful in business? Are you ready to take your own share of profit? You can only prove this if you are willing to step the decision and go through with the decision.

What are your thoughts with regards to this guide and do you have any business idea that you want us to write about? Let us know in the comment session.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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