This advice applies whether you’re running a classic newsagency or one that’s already been modernised. The key to success starts with understanding your current situation – and that means diving into the data.
Why Data Matters
Knowing your business inside-out forms the foundation for making informed decisions. This involves gathering information from various sources:
- Up-to-date financials: This includes your profit and loss statement, debtors and creditors reports, and a list of all outstanding debts (both official and unofficial).
- Inventory: Maintain a complete stock listing with total value, along with a separate list for items that haven’t sold in six months or more (dead stock) with their total value.
- Store layout: Create a floor plan showing gross profit percentage by product category and how much space each category occupies.
- Staffing: Track total rostered hours per week, including unpaid owners, and calculate your revenue per hour worked.
- Sales Trends: Compare your category-level sales for the past six months to the same period a year prior.
Taking Action: Starting with Quick Wins
Just wanting change isn’t enough. You need a clear picture of your current state and resources to navigate transformation effectively. This data will reveal immediate opportunities and your business’s capacity to fund change. It’s my starting point for every transformation project I undertake.
Clearing Out Dead Stock
Here’s a recommendation for a quick win: identify dead stock that’s not selling and that that’s already been paid for. Freeing up this cash and space can be a great boost. Create a dedicated clearance area with a uniform discount (50% is a good starting point) to move this stock quickly.
Uncovering Hidden Gems
While clearing dead stock, analyse the remaining data to understand your current business performance. Look at sales comparison reports to identify any untapped potential within existing categories. This can serve as your first easy win.
Embrace Continuous Improvement
As you analyse the data, keep building out a list of ideas and actionable steps. You might even discover previously overlooked opportunities or hidden strengths.
Finding the Right Guidance
Some seek help from accountants or consultants. While these can be valuable resources, in my experience, the ideal advisor has current, hands-on experience in retail specifically within the newsagency space.
Transformation is Yours to Own
It’s your business, and the desire for change is yours. The next steps are yours to define and execute. Owning the transformation process empowers you to build a stronger future.
Getting Fit for Change
Gathering data, cleaning house, and getting your finances in order are crucial steps – your equivalent of getting “match fit” for the more significant changes to come.
newsXpress is here to help
newsXpress is a marketing group helping local small business newsagents to create more valuable and enjoyable businesses.
