Write a report on how to set up a newsagents business
I am going to write a report on how to set up a newsagents business I have 50 thousand pounds to invest into this business. I will use my knowledge and also business theory to help set up my business. The reason I am setting up this newsagents business is because running a newsagent is often a community service. Most newsagents not only sell newspapers, magazines, confectionary, drinks and tobacco, but also stock books, fresh produce, such as sandwiches, and toiletries or medical products.
Many newsagents find that it is worthwhile retailing other products such as phone cards, and offering alternative services, such as the lottery, to increase revenue and to compete in an increasingly fierce market. This report looks at the issues involved in starting up and running an independent newsagent shop. Types of customers are likely to be children and teenagers who mostly would buy confectionary and magazines such as chocolate sweets and teenaged magazines. My other customers would be elderly people who would mostly buy the local and regional newspaper.
Elderly people treat their daily visit to the newsagent as a social outing. Other people would be such people travelling to work who pick up a newspaper to read on the bus or train I could exploit this customer base as my business is near a bus stop. My other customers will be people who drive to work so in this case they will not be able to read the newspaper whist they are driving so the way ill try to attract these customer is by having tobacco confectionary, drinks and fresh produce such as sandwiches for them to take to work.
My competitors will be such store as WH smith, Londis and Alldays as these stores have a majority of products the consumers can buy but these stores are near by ill will try to compete by with same amount of product range and lower prices ill will try to get lower prices by buying bigger amounts of stock which will cost cheaper. But the advantage I have got is I am just outside the centre of town so instead a costumer going in the middle in town having trouble parking the car I will be just outside town were they can park up outside by store and buy what the customer wants.
The other problem I have is bigger outlets such as supermarkets are now selling just as a newsagent they have an advantage because a customer can do all the shopping he/she needs in one store an example would be Marks & Spencer’s, Asda and Sainsburys. The only advantage I have got is being just outside of town. The other way I will win customers is by having every product always on the shelves and having the freshest produce such as sandwiches, donuts, biscuits, cakes and bread. The bread will be supplied by cuisine de la France that does deliveries every morning.
Now I have got the job specifications done I am now going to recruit two full time shop assistants and three newspaper distributors. The selection strategies I am going to have are for the two shop assistants an application form and a one on one interview. For the newspaper distributors it will be just a one on one interview. To get a vast amount of applicants interested in the jobs I am going to put an advert out in the newspaper and the internet as my business has its own website.
Also I am going to advertise posters in my shop window and around the residential area. My Newspaper distributors will be on i?? 12 a week both morning and evening newspaper distributors. The morning newspaper distributors will have to be at the shop between 6 and 7am so the newspapers can be delivered on time and giving a quality service to the customers. Same as the evening newspaper distributors they will have to arrive at the shop between 3:30 and 4:30 pm to ensure the newspapers papers are delivered on time to the customers giving a quality service.
As there is an offence to recruit a child under 13, as it is child labour I will put this on the poster and also ask for proof of age at the interview e. g. passport, birth certificate. The two shop assistants (aged over 18) I l will be needing the rates for them will be i?? 4. 50 an hour with a five hour shift Monday -Saturday and on Sundays 30 hours a week the two shop assistants will take the Sunday shift in turns. The shop assistants wages will be i?? 135 per week and i?? 540 per month and i??
6480 Per year (without Sundays). With Sundays the wages will be i?? 195 per week and i?? 780 per month and i?? 9360 per year. But because the Sundays will be taken in turns it will come up to i?? 660 per month and i?? 7920 per year this figure is what the shop assistants will be earning. The communication between my workers and me will be informal because this is a way motivating my workers and make them feel as if everyone is equal but l will want full respect of my authority