Whether you’ve got a traditional newsagency or you’ve already made some changes, understanding your current position is absolutely essential. It’s the very first thing newsXpress focuses on when working alongside newsagents.
Think of it this way: having a clear picture of your business’s present state is the solid ground upon which everything else will be built. It involves taking a thoughtful and thorough look at your operation from all angles. So, what information will be most helpful? Here’s what we consider important:
- A profit and loss statement that reflects the current situation.
- Up-to-date reports on who currently owes money to the business (your debtors) and who the business currently owes money to (your creditors).
- A comprehensive list of all outstanding amounts owed to the business, both through formal invoices and any less formal arrangements.
- A recent stocktake that provides the total value of all the stock you currently hold.
- A specific listing of any stock that hasn’t sold for six months or more (often referred to as dead stock), along with its total value.
- A floor plan of your newsagency that indicates the gross profit percentage generated by each product department or category, as well as the amount of floor space allocated to each.
- The total number of hours rostered per week for all staff members, including yourself, and the total revenue generated per hour.
- A comparison of your revenue across different product categories for the past six months when compared to the same six-month period in the previous year.
While a desire for change is good, it’s equally important to have a clear understanding of your business’s present circumstances and its capacity to accommodate change. The information outlined above will highlight immediate opportunities and provide insight into your ability to invest in making those changes. This is always the initial step in any business transformation we undertake together.
When you’re reviewing this data, we suggest focusing on identifying some achievable early wins to help build momentum. For example, if you find you have, say, $10,000 or more tied up in dead stock that has already been paid for, consider making a concerted effort to move it. Freeing up that capital and the physical space it occupies can have a surprisingly positive impact on your business. Perhaps setting up a designated clearance area with a consistent, reasonable discount, such as 50%, could be a good approach.
As you’re addressing the dead stock, take some time to carefully analyse the rest of your data. This will help you understand your current performance across different areas and identify potential opportunities within your existing product categories. This deeper understanding will provide a thoughtful direction for your initial steps forward.
As you gently explore the data, make notes of any ideas or specific actions that come to mind. You might just uncover some valuable opportunities that you hadn’t previously considered.
Some retailers find it helpful to seek advice from accountants or business consultants. While this can certainly be a valuable resource, it’s wise to ensure that anyone you consult has current, practical retail experience within the newsagency industry specifically.
Remember, this is ultimately your business. You are the one guiding the process of change and transformation. Embrace that ownership.
Begin by gathering this essential data, gently streamlining your operations where possible, and building a strong, clear understanding of your current position. This will thoughtfully prepare you for more significant and rewarding developments in the future.
newsXpress is here to help.
