One of the most common questions I get privately from people who find me through this blog is what should I ask for when looking at buying a newsagency?
The question itself, when asked, indicates how green a prospective purchaser is when it comes to purchasing a business.
Here is a list of data I suggest newsagency business purchasers access from the vendor or their representative:
- P&L from the accountant for the last two years. i.e. not a spreadsheet created for the purpose.
- A good explanation of any add-backs.
- Sales data reports, for the last two years, from the POS software in use – to verify the income claim.
- Sales data reports from the lottery terminal to verify the income claim.
- BAS forms to confirm data in the P&L.
- A list of all inventory to include purchase price and date last sold for each item.
- A copy of the shop lease.
- A copy of any leases the vendor expects you to take on board.
- A list of all employees: name, hourly rate, nature of employment, start date, accrued leave.
This is good basic information that will enable any purchaser to undertake reasonable assessment of a business.
A good business will shine through the numbers just as a business with upside achievable by new owners will shine through.
My advice to newsagents looking to sell who are concerned about this list is: think about it now and focus on your business so the data I have listed looks good.
Every day you make decisions in your business that impact many of the data points listed.
This is why I say every day is your pay day. Run a smart, lean and profit focused business and you will have a good pay day today and a good one when you come to sell.
The most appealing businesses are those that are easier to run and are making money.
The time to focus on that is now.
Sure a purchaser can turn a business around. They should get the rewards if they are expected to do that for your business.
The price you can sell your business for will be based on what it is making now.
Getting the data ready for the sale of the business could, of itself, help you improve how you run your business.
I cannot believe the number of internet advertisements for newsagencies for sale. In nearly 90% of the ads the defining promotional angle is the price drop. So many for sale in the $50 to $80,000 price range with stock INCLUDED!
Why would you outlay money to buy a job with crushing hours, stifling competition and little chance of capital gain. You are being sold the Big Lie.
Oh ‘Andrew’, it is sad you bring your hate and despair here. There are plenty of newsagency businesses providing a good return and not requiring crushing hours. Sure, there is competition – that makes good retailers stronger.
If you cared about the newsagency channel you would make a supporting contribution rather than this drivel from you.
Check the internet. Newsagency For Sale ads sweetheart. They don’t lie.
Check the internet. Newsagency For Sale ads sweetheart. They don’t lie. AND I’m pleasantly surprised one of my comments got through to the keeper.
I didn’t say they did ‘Andrew’. What I did do was challenge the nonsense you wrote. For some reason you want to talk the channel down. Your obsession is pathetic.
“Hate and despair”. I made a legitamit comment and you turn it into a YES campaign tactic.
Yes, ‘Andrew’, hate because you clearly hate newsagency businesses and the families that rely on them for income and despair because of, well, your own words.
Newsagencies can be terrific businesses to purchase.
I don’t and never have hated newsagencies. I’ve had two. What I do object to is your habitual habit of talking down to people who may have an alternate views to yours. Newsagencies are struggling. Newsagencies are closing daily. Stop gilding the Lilly.
‘Andrew’ your hate for them is obvious from your comments, you seek to do them harm. Sure there are closures, of businesses that have not transformed for the times. No lily gilding going on here.
You said: Why would you outlay money to buy a job with crushing hours, stifling competition and little chance of capital gain. You are being sold the Big Lie. There are people buying newsagencies, happy with their purchase, enjoying being self employed, enjoying reasonable hours, making money and looking to a bright future.
Just because you hate the channel based on your experience, don’t force others to expect your narrative for them.
ABS statistics tell another story. This channel is choking to death. The ‘silk purse out of a sow’s ear’ comes to mind.
I would just ‘hate’ naive inexperienced people to waste hard earned money on these businesses
Andrew certainly there are newsagencies closing ! Yes certainly there are newsagents working crushing hours. However the same can be said of Pharmacies, Cafes, Restaraunts, Clothing shops,Post Offices, Trucking Companies etc, etc.
Just because this blog is about newsagencies it tends to narrow the view to that but the prime point of the thread isn’t one unique to newsagencies. There are also good Newsagencies(I work less hours now than I did when I bought this place and make similar money. I open half day Saturday, don’t open Sundays and never open public holidays), just like there are good businesses in the ones I named above. Just because people have failed to adapt and failed as a business doesn’t make every business under that description either good or bad. Sometimes business is tough but you either knuckle down, find options and work through it or you give up and die. Maybe it was my military training but the second option never seemed like a good one to me.
Would I be cautious if buying a Newsagency now. Definately ! Particularly if it wasn’t diversified (and I don’t mean the pseudo gift shop in most cases) but I would also be cautious of buying any business even if it involved golden arches !
..and BTW I’m not NewsXpress or with any marketing group. 😉
‘Andrew’ you continue to try and drag newsagencies and their owners into your fog of despair.
I know of newsagents who lead relaxed lifestyles thanks to their profitable businesses. Just because your experience is different does not mean it will be the experience of others.
I know of newsagents opening new businesses. This, too, challenges your claims.
Anyone buying a business should vet carefully, of course.
hey Andrew T you can have my newsagency for $25000 wiwo who knows the third time lucky theory might kick in for you ????
Hi Ken. Still trying to sell the old dinosaur. Good,luck with that.
‘Andrew’ I admire your commitment to your mission, you really do want to drag as many as you can to your place of hate. Your experience may have been better had you transformed your newsagency. If you were a regular here you would know I have been calling on newsagents to do this for thirteen years, and prior to that is a variety of industry publications and in my newsagency management book.
That you did not transform your business, fine new traffic and happiness is on you and you alone.
My God you’re a fool at times. Why would you second guess what I did. I sold them both, 2011 and 2013. I saw the writing on the wall. Both were trading reasonably well. I broke even on one and the following year the purchaser went broke. Lost his marriage, house and business because of the bastardry of Westfield. The other newsagency was a cracker and sold well. It is now struggling with a declining customer base and rapidly increasing outgoings. Newsagencies phhht!
Get out while you can.
Once again, ‘Andrew’, you seek to talk down the channel. Your obsession is sad. If you did sell as you say then move on, live your life elsewhere. That you spend so much time here, spinning your negative opinions seeks to harm the lives and businesses of the thousands still in the channel, plan ty of whom are enjoying themselves and doing well.
I don’t need to assume anything. Had you transformed your businesses they would be thriving today.
“”Andrew T // Sep 28, 2017 at 5:34 PM
Hi Ken. Still trying to sell the old dinosaur. Good,luck with that.””
Andrew, with your attitude that outlet will never sell. I’d bet you killed the business yourself with negativity and are seriously looking for someone else to blame.
Why are you ppl still entertaining this Andrew bloke ?
Dirty little Andrew sits at his dirty little keyboard what a creep