The Wholesale Forums

[money_man]

Hey all, i was considering buying a newsagent shop which currently has a turnover of 8000 pounds per week.

I already run an online business on eBay, Amazon and website.

So just wanted to know is this a good business to get into at the moment?

[Balooka Heights]

It all depends on the location and the community size.

If the first is good and the later is large, then it should be a good investment .

[Beneddie1112]

That's over £400,000 a year, sounds a lot for a newsagents?

[money_man]

Its a convenience store aswell, selling alcohol, groceries etc.

[hardwareheroes]

If the margins are good, that is a reasonable turnover.

However, its usually a 5 o clock start and 8 o clock finish and at that level, its not gonna be affordable to have too many staff.

You'll need to go to the cash and carry two or three times per week to stock up unless you have large storage area/good financing. This will mean you need someone you can trust to look after the shop in your absence or someone who can do the shopping whilst you look after the shop.

Its not the sort of trade I would recommend someone to get into if they want to make mega money or have an easy life but if you have nothing else to do with your time and you prefer to be self employed rather than working for someone else. its a reasonable return on any lump sum you might have if you buy wisely.

[PT]

Turnover is irrelevant, you need to be looking at the companies profits. Don't forget there's staff, rent, stock, plus a whole lot more to take away from that figure. Is the £8k a week an average? Because I'm certain its not going to hit that amount week in, week out. Take a look at the companies finances and maybe have a professional look over them too if your uncertain. How long is it before your going to see a return and is it really worth it?

You've also got to think whether your going to be able to run your current business as well as the newsagents/ commodities store? If not, what effect is this going to have on your income/ lifestyle?

Just a few things to think about...

[Tango34uk]

Also check out the local area, is there likely to be a new superstore opening soon, just down the road? That will affect trade?

What type of people live locally, do the locals all work? If they do, then you will need to open earlier and later to cover the people befoe they go to work, and when they return?

Does the store have a post office - is it closing?

Is there a local Post Office that is closing - that might drive trade towards your store?

What footfall do they get on average per day?

[Costaconsoles]

Why is it being sold?

[greedyboy]

£1000 a day is average for this type of store. GP would be around £200 for a 10 hour day.

Don't do it. The margins are crap and you are looking at seriously long hours/7days a week to make a basic wage. Tesco's and co killed off the convenient stores a long, long time ago.

Plus within a few years there will be a Tesco Express within a mile.

[greedyboy]

Need more proof?

http://www.watfordobserver.co.uk/mos..._the_brink.php

http://www.thisismoney.co.uk/news/ar...7&in_page_id=2

http://www.soton.ac.uk/mediacentre/n...v/05_191.shtml

http://phil-simms.blogspot.com/2007/...hil-simms.html

http://www.wilmslowexpress.co.uk/new...ore_in_village

http://www.thisislondon.co.uk/standa...ops/article.do