How well do you run your newsagency?

I have put together some questions newsagents could ask themselves to self-assess whether they are doing a good job running their business.  There is no judgment intended with these questions.  No, I genuinely am trying to get newsagents to look at their businesses objectively …

1. Is your stock on hand data accurate?  If you think it is, when was it last audited?  Without accurate stock on hand data you can’t assess business performance.
2. Do you reorder stock using your computer system or using manual processes?  Experience shows that manual ordering leads to more dead stock.
3. Do you regularly review slow moving stock items and respond to keep stock moving?  This should be done monthly.
4. Do you comply with supplier EDI standards?  Around 50% of newsagents do not.
5. Do you produce (or have produced) a quarterly P&L and review this?  This is vital for quality business decisions.  I get it monthly for my stores.
6. Do you operate to a budget?  How often to you compare business performance with the budget?  This should be done at least quarterly.
7. Do you regularly compare your business against benchmarks: occupancy, labour to sales, overheads to sales, cards to total sales, magazines to total sales, stock turn by key departments?  This should be done monthly.
8. Do you manage theft?  I.E. track, manage and control fraud touch points in your business.  Newsagents who do not track theft are more likely to be a victim of theft.

These are important questions we all should ask ourselves regularly.  If we are not doing these minimum things in our businesses then we cannot call ourselves professional retailers.

Too often I see newsagents demand a certain level of professional courtesy and treatment by suppliers yet refuse to manage their own businesses respectfully and professionally.

There are some high-quality, professional, newsagents out there.  There are also some who complain about suppliers yet run poor businesses.  This checklist is designed to help you see where you are and to challenge you.

We need to be accountable for our own business situation and business performance. Often, success or otherwise comes back to how we run our businesses and how much we respect business data.

I’ll gladly help any newsagent work on their business.  You can reach me at mark@towersystems.com.au.