A common question people reading my ramblings here ask is why should they buy a newsagency? They see issues I raise as show stoppers in their consideration of buying a newsagency. Sure, there are challenges. Every business has challenges. Overall, newsagents can manage the challenges. A well managed newsagency runs well – the key is good processes, sound advice from experts / mentors and a regular stream of marketing and business development initiatives.
Life as a newsagent is good. It’s honorable work and important for the community – we’re the last bastion of personal service in a very corporate retail world.
Newsagencies have an excellent future if we focus on the right business decisions for our businesses. This means we broaden the focus of the newsagency in some areas and narrow the focus in other areas. For example, we need to tell our core suppliers we will do less of their bidding unless it can be demonstrated this work (posters, displays and the like) generates real revenue for us as opposed to them.
By leveraging our traffic, building a deeper basket on the back of increased traffic while at the same time tweaking margin, we can build very successful businesses. Our blessing, right now, is our traffic. Today, this is what makes buying a newsagency a good move. Entrepreneurial newsagents can leverage that traffic and create for themselves and excellent return on their investment.
Te key is to know you are going into a master / slave relationships in some parts of the business and to make decisions which minimise pain from the lashes as much as possible.