Newsagency operational management advice for new newsagents and others

There is plenty to learn for the new newsagent and plenty an old hand can forget. I am often asked about important day to day operational tasks in running a newsagency so I started putting together a list. It’s an evolving work in progress, something I am happy to share with anyone – not as a definitive list of what you need to be on top of in running your newsagency business but something at least you can check against.

1. MAGAZINES.
   1. Arrive invoices through XchangeIT – no other way.
   2. Only sell magazines by scanning. Never use department keys.
   3. Do not label all magazines. Do not label weeklies or high volume monthlies.
   4. When returning magazines, scan out returns. Do this at least weekly.
   5. Early return at least twice a month – based on what is NOT selling.
   6. If you have sub agents – only supply them through the sub agent facilities in your newsagency software.
   7. Check your magazine account as soon as it comes in to ensure you have received all credits.
   8. Pay your magazine bills on time without fail – avoid being cut off for weeks without magazines.
   9. You control where magazines are placed, it is your shop. Do not be told by publisher reps where magazines should go.
   10. You do not have to put posters in the window. I recommend against this.
   11. You do not have to do big magazine displays – it is your choice. I see no evidence of it increasing sales.
   12. I recommend against letting magazine companies set up display unless you think they will help drive sales.

2. NEWSPAPERS.
   1. You control where newspapers are placed, it is your shop.
   2. If you are regularly undersupplied, complain to the publisher as well as the supplying newsagent (if you do not have a direct account).
   3. Scan all newspapers you sell.
   4. Scan all newspaper returns – accurate data will be your friend in the event of a dispute
   5. You do not have to put out newspaper posters or place newspapers in a certain position unless you have signed a contract with a publisher agreeing to this.
   6. Manage your exposure to promotions where you sell stock for a tiny margin.

3. CARDS.
   1. Put out your own cards. Learn what you stock. Take ownership of this most important product category.
   2. Agree on an ordering process with your card co. account manager.
   3. Immediately report any over or under supply.
   4. Trust your data ahead of your gut.
   5. Pay on time or risk being cut off.
   6. Discount seasonal stock at the end of the season for a couple of days to p[ick up stragglers and make an extra few $$$.

4. STAFF.
   1. Have a documented position description against which your employees are measured.
   2. Have a roster every week.
   3. Have a structured process for handling annual and sick leave.
   4. Use payroll software for record keeping.
   5. Pay always on time and preferably by electronic transfer.
   6. Pay super on time. Do not start someone working for you unless they have provided a super account number with their tax file number.
   7. Change your roster regularly for casuals.

5. STOCK.
   1. Use your computer system to guide ordering of stock – order based on sales.
   2. Order to a budget.
   3. Scan everything you sell.
   4. Scan out personal use stock.
   5. Set your own mark-up policy for items that are not pre priced.
   6. It is easier to discount than increase prices.
   7. Do not pay for an external stock taker – do it yourself through the year.
   8. Check high theft risk items like cigarettes weekly or fortnightly.
   9. When arriving stock be sure to allocate accurately to departments and categories for accurate business reporting.

6. SHOP LEASE.
   1. Pay on time otherwise you could be locked out.
   2. Do not agree to a new lease unless you have read the entire document and are prepared to agree to it in its entirety.
   3. Conduct discussions with your landlord in writing to maintain a paper trail.

7. GST.
   1. Complete your BAS on time and make any necessary payment – to reduce the opportunity for you being audited.

8. FINANCE AND OTHER MATTERS.
   1. If you borrowed to get into your business, start paying this off from the first week, make progress everyweek. This avoids you having a challenge when you come to sell the business.
   2. Pay yourself a wage or at least accrue this in the accounts.
   3. Integrate with accounting software like Xero – keep bookkeeper costs down.
   4. Ensure workcover (workers comp.) cover is up to date and maintained.
   5. Ensure you have appropriate council permits for what you sell – i.e. food.
   6. Have a structured banking process that ensures that cash is tracked at all steps and at all time.
   7. Take a data backup every day. The best approach is an automated cloud backup – ask your software company.
   8. Bank every day and bank the takings for each day separately to make reconciliation easier.
   9. Use your software to manage the end of shift process to drive consistency and accuracy.

As I said at the start, this list is evolving with time. I hope it is useful to new newsagents and would be newsagents, to understand some of the day to day tasks you cannot afford to get wrong.