Small Newsagent query

MrMatisse

Have just seen a unit 450 square foot, Footfall not bad, rent only 650 a month.

Would it be worth my while opening a unit that small?

ANy advice appreciated.

PCPhoto

location location location


you wont get customers unless you have a decent location.

MrMatisse

Location isnt bad, Its surrounded by a housing estate.

Bandara

No it isn't, you will not be able to carry sufficent range of products to make customers come to your shop.

Also if you just try to stick to the simple stuff you'll quickly find that the margins on bread, milk, newspapers, cigarettes and phone credit I'd not enough to allow you to make a living.

Finally the effort involved in running a shop like this is not really much less that the effort required to run a 1500sq ft Spar. At least with the spar you can earn 100k+

NKtile

Hi there Really Stressed,

I would have to disagree with Hammertime. No offence meant Hammertime but from reading a number of your posts on business start ups, you oft seem to advice setups are not viable unless of a large size. I would suggest that the OP is not looking for the massive investment of a 1500 sq ft Spar etc. People have different ideas when setting up a business, some monstrous, some more modest,I think it is not possible to say that the size is not sufficient as the OP was asking about a ewsagency, and outside of most products you state is heading more for convenience store. There is a still a living to be mafe in residential areas from smaller newsagency ,such as the premises mentioned by the OP. Having had both convenience stores and newsagencies, there is money in both, both hard work.

Really Stressed any specific advice feel free to pm me, as is hard to say much one way or another on the briefr details you mentioned.

Hammertime hope no offence caused, however just pointing out in my opinion you would seem to be looking at ventures from a stronger backround financially, or more ambitious at any rate then some!Fair play to you! but i think some just happy to make more modest returns these days. Cheers!

MrMatisse

Any idea how much such a small unit would make net?

40-50k?

Cheers!:D

MrMatisse

a 750 square foot unit is also possible. I dnot have the resources to go for a full name brand 1500 square foot unit. I have retail experience with a supermarket multiple but am not too sure how units so small would fair today.

ScouseMouse

Rent is only one overhead.

You did consider rates, insurance, wages, esb, etc etc, didn't you?

MrMatisse

Rates 2k so not too bad.

Operating it as a sole trader.

ESB not too bad, no deli so that saves a bit.

Insurance is expensive as usual.

Just really wondering what such a small unit could do roughly on average net

DubTony

It's hard to put a figure on it without knowing almost everything about the area, the demographic etc. I had a 650 sq. ft. shop that turned over more than shops twice its' size a few years ago. So there's no real golden rule. But turnover doesn't make any sense if it's all cigarettes and scratch cards. As for net profit? Well, how long is a piece of string? That depends on the person with their name over the door.