Initial Setup Costs

The cost of setting up a newsagent can vary depending on location, size, and stock selection. On average, new shop owners can expect to invest between £20,000 and £100,000. Below are some of the key expenses involved:

• Shop Premises – Renting a small high street shop can cost anywhere from £800 to £3,000 per month, depending on the location. Purchasing a property outright could range from £100,000 to £500,000.

• Shop Fit-Out & Equipment – Shelving, counters, fridges, security systems, and signage may cost £10,000 to £30,000.

• Initial Stock & Supplies – Essential items such as newspapers, magazines, confectionery, tobacco, drinks, and household goods will require an initial stock investment of £5,000 to £20,000.

• Licensing & Legal Fees – If selling alcohol, tobacco, or lottery tickets, expect to pay for relevant licences, costing anywhere from £100 to £3,000.

• Working Capital – Ensuring you have enough funds to cover wages, rent, and utility bills for the first few months is crucial. Many new business owners set aside at least £10,000 to £20,000 in working capital.

Potential Earnings

A newsagent's income can vary based on footfall, stock variety, and business location. On average, a well-established store can generate:

• Daily turnover of £500 to £3,000, depending on location and product range.

• Gross profit margins of 20-40%, with higher margins on confectionery, drinks, and convenience items compared to newspapers and magazines.

• Annual net profits of £30,000 to £100,000, once expenses and stock costs are deducted.

Maximising Profitability

To boost earnings, many newsagents expand their product range to include lottery tickets, alcohol, fresh food, or even small grocery sections. Offering delivery services and setting up online ordering can also increase sales.

Finance Options for Setting Up a Newsagent

If you need financial support to cover start-up costs, EP Finance offers various funding solutions, including business loans, equipment finance, and commercial mortgages. Our tailored finance options can help you secure the right funding to set up and grow your newsagent successfully.

Get Expert Financial Support

Setting up a newsagent requires careful planning and investment, but with the right funding and strategy, it can be a profitable business. Contact EP Finance today for a no-obligation consultation and explore finance options tailored to your needs.