Write a report on how to set up a newsagents business.

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Introduction

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.

Who is my market?

Many of my customers will become regulars. Others will be passing trade.

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.

Competitors

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.

 The chain of production

My business in the chain of production comes under consumer retail. Here is an example of the chain of production in chocolate and the process it goes through in the chain of production to get to the consumer position.

Raw material

Coco beans and sugar cane

Primary Sector

Extracting the coco in the farming process by harvesting it ferment it and drying.

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Same process applies to the sugar cane.  

Secondary Sector

Manufacturing

Using the raw materials in to a chocolate bar

Tertiary

This is were the chocolate bar is transported to a retail outlet for consumers to buy

  

Consumer

This were the consumer has bought the chocolate bar for there personal use.  

As you can see my newsagents comes in the last part of the chain of production before the customer buys it. So it basically my responsibly to get ...

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