Sometimes, the road ahead can appear to have so many obstacles and the air heavy with fog that a pathway can be hard to find.
If you feel like closing is your only option, I am writing this for you. It’s an update to something I have shared before. I share it today as a supplier asked me to remind folks here.
If you feel like closing your newsagency is the option, ask for a second opinion. I and plenty of others in our channel will do this, based on your business data: sales data, P&L, and more.
Usually, in the evidence of data is opportunity. The challenge is that often opportunities cannot be seen because of the noise of obstacles and fog.
My hope is that in your evidence there is sufficient opportunity to find a path forward for the business, and for you.
Turning a situation away from closing is my only option can only come about by one or a mix of:
- attracting new shoppers
- getting existing shoppers purchasing more
- making more from some of what you sell
- reducing costs
It’s pretty simple when you read the list. The hard part is the action, that’s where retailers can get stuck. I mean, attracting new shoppers is difficult, especially in small business where the levers we can pull are limited.
The best way to attract new shoppers is to introduce new product categories and to pitch these outside of the business.
I get that it may be challenging to find the energy and money to make things work with new products. If the survival of your business matters you’ll find a way.
The best way to get existing shoppers spending more is through a smart loyalty mechanic and having a shop people enjoy.
The best way to make more from what you sell is by charging more or buying better, or both. Don’t go crazy. A modest increase in GP% could work wonders.
While doing these things you also need to work on reducing costs. That’s a common approach to saving a business. While it could help, rarely in my experience have I seen reducing costs alone be enough to save a business. Sure, it can be in the mix, but it alone is not enough.
Key to the success of any turnaround is starting on the road early, before fog and debris block the past. It’s important to all of us who own businesses to be looking well ahead, over the horizon, cultivating assets we can deploy when we think change may be needed.
If you think closing your newsagency is the only option, reach out. There are plenty of us in the newsagency channel who will listen, and offer advice if you’d like it.
You are not alone.
Mark Fletcher
mark@towersystems.com.au mark@newsxpress.com.au
https://www.linkedin.com/in/mark-fletcher-tower/