Set Up Costs

Set up costs are all of the expenses associated with purchasing a newsagency. An allowance needs to be made for these costs when considering the viability of the purchase. The amount to be provided for varies depending on the size and other factors but as a rule of thumb, an amount of 15% of the purchase price should be factored into calculations when considering the affordability of the business. It is generally accepted that a 15% allowance may be too high for an expensive newsagency ($750,000 plus) and a 15% allowance for costs may not be enough for a small newsagency (less than $300,000). The only way to accurately calculate the set up costs is to make an accurate assessment of all of the expected costs together with your business broker. These costs will include: