Buying a newsagents - what professionals do we really need?

joanna3292

We are looking to buy a well-established newsagents - not to make us rich but just to enable us to tick along and kind of get out the rat-race for a while! We have found a nice leasehold place with an affordable rent and a purchase price we can afford. However we need to make sure that we cover all the extras before we plunge in. We have been offered advice from a business mortgage broker who can arrange our business loan - they are asking nearly £2,000 for this service - do we really need them? Do we need a proper structural survery on a leasehold property, I would think not but I am unclear as to the responsibilities that we will have on the property? Obviously we will need a lawyer to check out the lease but is there anyone else we have not thought about? We want good advice but dont want to overdo it and cause unnecesary expense. Any advice appreciated - many thanks

poppysarah

Get our of the rat race?
I think newsagents are about as in the rat race as you can be.

It might be a repairing lease in which case you have to repair everything that needs doing so a survey would be a good idea.

You need to see the books of the place to see whether it actually makes any money. Have you ever run a business like this before? What time do they start work? 4am? 5am?

oldone_2

Don't buy a newsagents.You have to open 7 days a week, getting up early to receive the papers.Paper deliveries have to be organised (when a paper boy doesn't turn up our newagagent has to deliver by himself in a car). If you go on holiday you have to arrange trustworthy relief. Most important of all you will be in competition with supermarkets and garages which also sell papers.

pickles110564

My parents are newsagents and have been in the trade for 40+ years.
It is a very hard life, they get up at 4am every morning, 7 days a week.
By the time they finish the bookwork they do not get much sleep.
They have never taken a Holiday.
However they love the life they lead and would not change it for anything, I have been asked by several of the customers about when will I take over the business but I just laugh, why would I give up working just half the year, paid sick etc etc.

PasturesNew

I'm sure you'll get answers to the actual question you asked soon .... however, in the meantime, it seems people are agreed that a newsagent isn't great.

What are your drivers and motivations for choosing a newsagent shop?

GDB2222

Buying a newsagents - what professionals do we really need? I was going to say a psychiatrist, but it's just my little joke, so don't mind me.

On the property, it's probably a repairing lease, so yes a survey is needed. I wouldn't want to be taking out a loan to cover the key money on a lease. That seems high risk to me.

RobertoMoir

I wouldn't say there's anything wrong with becoming a newsagent if that is what you want to do but it's not "getting out of the rat race" by any means.
It's kinda like the idea that running a pub looks easy because all you see is the landlord standing around greeting the customers and pouring the odd drink... but that's harder work than you think, and there's a lot they do out of hours that you don't see and that's where they really earn their money.

Mutton_Geoff

Last week I asked my local newsagent how the credit crunch was affecting him. "Crunching hard, sahb, crunching hard" was his reply. A recession is often the best time to get into a business though. Low rents, low SAV etc.

besonders1

I know someone who turned an old residential council house into a newsagent 5 years ago. there are no other shops nearby and the owners have just recently retired and paid off their mortgage.

Newsagents are very profitable though, I remember there were complaints from neighbours about parking on their street and been woken up at 6AM by noisey customers waiting for a morning paper before going to work.

So good luck

newsseller12

I am a newsagent and have been for 5 years, I run it with my wife and to be honest it is great. It is long hours ( I work 6.00am till 9.00pm 7 days) but rewarding.
Ours is freehold unlike yours and our loan is with RBOS, There was an arrangement fee for this loan similar to a mortgage but no brokers fees.
Remember to factor in the cost of purchasing existing stock from the vendor and also the rather hefty deposits you have to place with your news suppliers for the first 6 months.
Get a solicitor who is clued up on commercial leases to check the lease out for you.
If you have any more questions feel free to PM me.

joanna3292

Thanks Newsseller12 for your helpful reply. There are a few negative replies that frankly were not particularly helpful. I just wanted to clarify that by getting out of the rat race I meant doing our own thing, being our own boss and not commuting into London every day which I have done for over 10 years and dont really want to do any more. We have no experience in buying a commercial property although my husband has around 20 years experience in retail, including newsagents. He spent many years running pubs so is fully aware of the long hours etc. The hours may be long (6am - 6.30pm which is pretty much what we have been doing) but this is obviously something that we have given thought to and have factored in wages to pay staff so that we have time together and also important time with our 3 young children. The newsagents we are currently looking at has had a very steady, good income for the last 15 years. The place is looking tired and fairly dusty about the shelves. We are hoping that we can improve turnover but have done our sums on the current profit in case we cannot improve turnover or the recession hits harder.
I really just wanted advice on which experts we need and in particular whether a business broker is necessary? We have already factored in the cost of stock, other start-up and business expenses etc.
Thanks Poppy for pointing out that the lease may be a "repairing lease". That was a term that I was unfamiliar with and so will do some research on this.
Newseller12 thanks for the tip on the hefty deposits for news sellers - we were planning on spending at least a week at the newsagents with the current owner so we can phone all suppliers to see what deals/terms they have. He currently has a lottery machine, photocopier, does pre-packed sandwiches, greeting cards plus the usual newsagency stuff. Is there anything you would particularly recommend or stear clear of? Many thanks