John Hitchin

Planning the Opening and Running of a Bookshop

Copyright © John Hitchin, 1998
Center for Publishing Development, Budapest, 1999

CONTENTS

SOURCES OF FURTHER INFORMATION

This brochure sets out the approach to setting up a model bookshop from the very beginning. The concepts in it are on the North American or Western European model of the ideal general high street bookshop and thus it will be differ considerably from ideas about book selling that hold good in other parts of the world. The pressures of a highly competitive retail market place have ensured that, in the last decade or so, the modern bookshop is a long way away from the traditional concept and this contrast can be seen even within European Union Member States, where old fashioned bookshops that still exist can be compared with major booksellers who have changed with the times or with recently opened bookstores of a wholly new kind.

It is difficult to conceive of a new, high street bookstore now being set up other than as a modern retail unit. For the opening of a bookshop should include most, if not all of the following features:-

A wide range of stock, representing a significant proportion of current local publications and all relevant foreign titles

A bright, well lit store with plenty of space for customers to move around in

The latest electronic technology for stock management, point of sale and controls.

A fully comprehensive information system that is customer user friendly

Keen well informed staff anxious to help

Modern merchandizing methods

A full range of marketing and promotional tools

Tight management controls, including security systems

To begin with the potential bookseller needs to be quite clear about the decision to open a bookshop. Any form of independent retailing in the modern business environment will require a huge commitment, especially in working time, if competition with chain stores and supermarket outlets, which increasingly dominate the high street, is to be successful. Furthermore, the potential bookseller will need to recognize the extra element of commitment and skill that selling books requires. For books are amongst the most complex of retail products (and it is a measure of their complexity that many people do not even regard them as 'products') and they are certainly not amongst the most profitable, given a relatively slow rate of stock turn; low margins; high costs and high capital investment - all contributing to a relatively very low rate of return on an investment. So the potential bookseller has to be highly committed.

Bookshops are often opened entirely on a 'hunch', the feeling that the owner has that this is the right place to be. There is, quite often, nothing wrong with such judgements, provided that they can be backed up by some careful analysis, which will be essential if outside funding needs to be raised for the project. What then can be done about assessing the potential?

Population and demography

It is said of retailing that there are three matters of most importance for shop. they are: position, position, position”. Choosing a site for a book shop is of critical importance and the correct choice will have a considerable bearing on the ultimate success of the enterprise. To begin with it should be recognised that a really prime site is almost certainly beyond the means of a bookseller just starting out, even if a large chain may be able to afford it. Prime sites are usually too expensive for bookselling. Criteria for site choice might include:

What is the flow of potential customers in the centre? Where are they coming from and going to? Is there a place nearby where they gather, do they hurry past the potential site?

What are the other shops in the immediate area selling? Do they seem to be doing well? What is the position on occupancy - are there many shops empty or is the area fully let?

Where is the competition? Is it desirable to be close to them? Or is there a strategic position to be taken on the other side of town?

Property owners and their agents will almost certainly have research on retailing patterns. If engaging a retail property agent to search for a site, insist on access to their research database.

The ideal size and shape.

The search for a site ought to concentrate on a building with a frontage made up of clear plate glass windows with a good clear doorway for preference, a rectangular ground plan (i.e. in proportions say of 1 across to 3 or 4 deep) and occupying one or two floors which should, if at all possible, include a basement that can be used for selling books (i.e. not for storage). Quite often an older building (say late nineteenth century) will lend itself to adaptation as a multilevel book store in a way that does not suite other forms of retailing.

It need not be strictly rectangular, since some of the most interesting book retail designs are based on extremely irregular shapes. so for example a relatively narrow frontage can support an L-, or T- shaped interior, or indeed a polygrammatic layout with a number of irregular corners. The allocation of space to levels must be a function of the existing building, but ideally more area should be available at lower levels than upper, and it should be noted that basements, which attract low rentals, have proved to be very good for book selling, provided the staircase has been designed carefully enough to attract customers down stairs.

NB.: people always prefer to go down rather than up to purchase, and will then be more prepared to climb after having made a purchase.

It is important to begin by choosing and appointing a legal advisor for drafting and checking contracts and for permissions.

A rental agreement for retail property is usually for a fixed period, the longest of which is usually 25 years. Care should be taken to ensure that the site, once selected, is unencumbered, as far as it is possible to know, by any proposed changes to the property itself or the immediate surroundings. A clause in any contract should ensure that such a contract is nullified if these changes do take place, since they can badly affect the performance of the business. If an old building is chosen as the site, then it must be made quite clear which party is responsible for maintaining and repairing all aspects of the fabric, both externally and in the interior, and this particularly applies to the provision of services: electricity, water etc. It should also be recognised that the enterprise, as it becomes successful will almost certainly enhance the value of the property for the landlord, who will therefore be attempting to increase the passing rent at each review. This is a matter for the interpretation of local laws relating to property matters, but it is a well known factor that changing high street property values have driven often well established bookshops from their sites and into secondary pitches, to the ultimate detriment to the business.

It will be important to obtain expert advice on the drafting of any agreement with a landlord, given the factors (and others) outlined above. It is a characteristic of the setting up of large bookshops that a good deal of time and expertize is devoted to getting the right rental agreement and to ensuring that the relationship between the landlord and the tenant is a smooth one. It has to be anticipated that the landlords interests are quite different from the bookshops and that poor trading through circumstances beyond the booksellers control (i.e. a sharp increase in taxation or a drop in living standards) will be of little interest to a landlord (especially if that landlord is an investment institution such as an insurance company), who will be solely concerned with maximising the return on the investment in the property and who is only too happy to throw the bookseller out in order to let the store to some more attractive retail tenant. This cautionary note, whilst seeming obvious, is especially important in the world of bookselling where the difference between profit and loss is a very narrow one and the margin for error very large.

The position of local government can be either benign or unhelpful, depending on the nature. A good local council will recognise the importance of preserving vibrant high street retailing and may even recognise the need for a good selection of books stores. Watch out for any restrictions on commercial use that would limit the scope of the bookshop, such as the playing of music, and find out if any planning permission is required

These are inevitable but care must be taken to ensure that they do not cripple the shop. An examination of the basis on which local taxes are charged is recommended before any decision be taken about a particular property. Local taxation officers in every country are known to make rather arbitrary decisions about the basis for a land or property tax charge and there decision should not necessarily be taken as final. Expert advisors are available for this subject.

The rent payable is likely to be the single biggest cost factor. Means of establishing this vary from country to country, but it is usually possible to establish what the going rate is in the immediate vicinity and this can be used as a benchmark. Modern rental agreements often include extras, such as scales of rental rising each year or a percentage of turnover element that is added to the basic rent. Occupancy of shopping centre sites will almost certainly mean a number of extra and sometimes complex clauses.

In addition to the rent there is often a Service charge, which consists of a number of costs incurred by the landlord, such as building repairs. It is important to discover how these are calculated. In addition does the property incur a standard charge yearly to be set aside against future liabilities (the so-called sinking fund).

In negotiation a rental agreement for a new building it is often possible to enjoy a Rent free period, until all building works are complete or until the site is seen to have been fully developed.

Booksellers are well advised to try and seek a clause in the agreement on the prevention of other bookshop openings in the same development or any adjacent property under the same ownership. This should apply to both new and to bargain bookshops.

Are the Terms of the lease clear? is a question that the bookseller must ask of their legal advisor before the Final offer letter is sent by them to ensure the property.

Read the draft lease carefully so as to be able to discuss it with professional advisors. Make sure that the legal advisor confirms that all appropriate searches are in order. Agree the date of exchange of contracts and the date of completion, i.e. the date at which builders can move in. The legal advisor must check local government regulations; limitations on use; clarify rights available to tenant; the limitations of access to the front, the sides and the rear; goods delivery arrangements. At the same time it is a good idea to investigate electrical/gas supply/water and what economic tariffs are available.

It is unlikely that the start-up bookshop will wish to own the property but it is worthwhile establishing whether such a possibility exists in the future. If so in what form is payment required and when? Meanwhile in the rental agreement is there any subvention from the landlord by means of a contribution towards fitting out? The answers to these questions have significant bearing on calculating the affect on cash flow. Once the date for a rental agreement is known it is important to obtain immediate access to the property and to have detailed plans ready for the professional advisors (although if these can be obtained beforehand then they will have a head start). The tenants handbook in the case of centres with services should be obtained from the landlord as soon as possible, since items in it may well affect the planning of the shop, e.g. the disposition and nature of the windows. Confirm the postal address with the local postal services as soon as it becomes available since it will be required by all the service providers and by suppliers. Contact the Telecom company for telephone requirements, including direct lines for computer modem and/or fax. This is an urgent matter in some countries, given the long lead time that telecom companies often require. Form a clear view about the kind of bookshop that is wanted before taking the first step, often taken before the conclusion of the discussions with a potential landlord, which is to:

Having an architect/designer and quantity surveyor for the design and the building of the shop is a crucial factor. The architect/designer is likely to have previous book store design experience and is therefore familiar with the latest techniques employed in bookshop design, and the quantity surveyor will ‘manage’ the setting up of the book store. It is just possible to combine these roles, but experience has shown that the Quantity Surveyor can make a significant impact on costs, can help choose the right contractors and can be expected, within reasonable bounds to complete the project in the time The architect can help with the form of fixturing to be required, subject to decisions taken abut the approach to merchandize, and the layout of shop will need to be in accordance with these merchandizing requirements. Similarly particular decisions are needed at this stage for fixturing for non-book merchandize allowed.

A good bookshop has to perform a wide variety of functions. These will include:

holding stock systematically for the customer in search of a particular title and who prefers to look for the book themselves, using the stores signage system; displaying a range of titles suited to impulse purchasing. Over half all books bought are chosen on impulse; providing attraction points to stimulate awareness of a subject or a theme e.g. current fiction, books on the environment, books as gifts etc.; creating an exciting environment that encourages customers to browse and to be stimulated by new ideas; providing a pleasing atmosphere that will encourage visitors to return to. Merchandizing systems can do all these things and more, but only if staff are encouraged to be creative and adaptive about the equipment use. This is best achieved by setting up a variety of display schemes on the shops inception and then getting staff to participate in making various changes to the scheme.

Above all the bookshop must appear to be ‘user friendly’, a characteristic missing from most book retail outlets in the country (although there are some striking exceptions). Clear and precise sign-posting helps with this task, but the content of signage is important: it must seem as though the bookshop actually cares about customers and is prepared to talk to them on a friendly one-to-one basis. Information of interest to potential bookbuyers must be easy to access, e.g. the Visual Display Unit carrying bibliographic databases should be on a pivot so that the customer can see what is appearing on the screen if they so wish. The aim here is to encourage potential customers to look upon the shop as a resource, capable of providing information that may, or may not lead to a sale, but that is always willingly given. Install notices as ‘reminders’ for customers - books recently reviewed with copies of a favourable review pinned up, details of film 'tie-ins', anniversaries, information about literary events and people. Of special importance is the information provided to parents of children learning to read or in school, teachers, and anyone concerned with the encouragement of reading as an enriching skill. All these aids should add up to the book store becoming a ‘cultural experience’ and one that encourages regular use of the bookshop.

The precise choice of other fittings will depend on the configuration of the site, since customized fixturing may well have to be built to fill in gaps left by the standard fixtures inability to fill ‘awkward’ gaps left in an irregular site. Such fixtures can often be used to make striking features to promote subject areas e.g. gardening books, with indoor house plants.

There will also be a need to design the interior of the window, or at the very least adapt standard fixturing to allow for access to the window, provide strong support for window displays, whilst at the same time ensuring that passers-by can look into the interior of the shop in an unimpeded fashion. Designers can come up with a number of solutions to this problem and proprietary systems exist to enable point of sale material to be suspended between floor and ceiling The precise choice of other fittings will depend on the configuration of the site, since customized fixturing may well have to be built to fill in gaps left by the standard fixtures inability to fill ‘awkward’ gaps left in an irregular site. Such fixtures can often be used to make striking features to promote subject areas e.g. gardening books, with indoor house plants.

There will also be a need to design the interior of the window, or at the very least adapt standard fixturing to allow for access to the window, provide strong support for window displays, whilst at the same time ensuring that passers-by can look into the interior of the shop in an unimpeded fashion. Designers can come up with a number of solutions to this problem and proprietary systems exist to enable point of sale material to be suspended between floor and ceiling

Generally modern bookstores can be fitted out using variants of industry standard modular systems, adapted for the purpose and for the style of the shop. such business exist in several countries in Western Europe and despite the higher costs associated with shop fitting in the west it is extremely unlikely that local custom made fixtures, especially given the cost of imported raw materials, would be able to match these ‘turn-key’ solutions. The main feature of such systems apart from their attractiveness, is that they are unitary and therefore entirely flexible. It must be possible for staff to alter the fixturing around at frequent intervals to allow for varying merchandizing requirements - the promotion of large format books or non book merchandize, seasonal promotions such as Christmas etc. There will need to be: total flexibility; durable usage; easy maintenance and easy replacement. Fittings must be designed to display differing formats of books, either face or spine forward; enable staff to make features, built around in-store promotions; able to sell a variety of non-book merchandize, such as gift and greetings cards, calendars etc.; provide table top space for piles of bargain or bestselling titles;

be modular allowing for fixtures to be re-merchandized, whilst on the other hand, provide merchandizing opportunities for irregular spaces in the store.

A critical point in the shop is the point at which customers pay for their books. This can be rather forbidding, with electronic equipment making it look like the check out of a supermarket. It is important that the cash desk be by or near the door, preferably on the right hand side as one enters the shop, so that customers who tend to move in a clock wise direction end up by the till as they leave. A cash desk by the door is a major deterrent against thieving. EPOS equipment should be embedded in the cash desk furniture and be unobtrusive, so that the customer is not put off. The area adjacent should be both a control position for the shop - the place where the person in charge of the shop is likely to be found ( managers should not be given offices - their place is on the shop floor) and it can be an information point where a second or third VDU is used for accessing the shop’s and the industry's bibliographic databases, and where customer information is provided and customers orders are taken. Depending on the physical shape of the shop this area would also be designed as a visual information point with best seller lists and point of sale material relating to current titles on prominent display, together with advertisement for the shops services.

The type and position of the stairs between floors if not already in place, is a crucial factor in the effective bookshop design. Stairs must be wide and easy enough to encourage movement without taking up valuable floor space. Ready made stair case fittings can be acquired, but it is probable that to suit the bookshop stairs would need to be tailor made and this has, inevitably, a significant impact on the capital sum required to fit the shop out. A Freight lift is an essential feature of a bookshop on more than one floor that expects to do any reasonable amount of business. These can be bought complete and fitted to suit the particular configuration of the premises

Modern bookshops store most of their stock on the shop floor, but there must be adequate space for receiving goods, adjacent to the delivery entrance to the shop and enough space for work to be carried out in checking goods against documents, or compiling returns. Architects seldom realize how bulky, and heavy books are and how much space is needed, say, to cope with the pre-Christmas rush. Space must be set aside for staff quarters including adequate toilet facilities, unless these are provided elsewhere in the building.

Effective lighting, which need not be expensive, can be employed to provide ambience, comfortable levels of seeing and drama. Care must be taken about the quality of light sources: on no account use strip lighting for it has an extremely deadening effect on the book stock. Any overall scheme is likely to include low voltage spot lights, ceiling mounted, either on tracks or inserted into a false ceiling. By the use of transformers that brings the voltage down to as low as 12V, the overall lighting costs of the store can be kept within reasonable bounds. Drama can be achieved by using spot lights strategically placed and again employing energy saving bulbs. Such schemes are capital intensive initially, but bulb replacement and current usage would be well down on more traditional schemes.

Air conditioning can double with air circulation heating systems and the correct choice of equipment will contribute considerable cost savings, yet able to provide a comfortable environment in any extremes of temperature. Particular care is needed to ensure that the bookshop does not become too hot and therefore providing an unfriendly environment for browsing. A variety of stand alone equipment can be installed to ensure that air is cooled in 'hot-spots'.

Is of critical importance. Clearly designed signs of varying types, both produced on a permanent basis by outside sign makers and those produced on the shop's word processing or DTP systems, make a big contribution to the attractiveness of the bookshop. Never underestimate the amount of detailed sign-writing that can take place throughout the shop, for example on plastic 'shelf-talkers' that are place immediately below a particular book.

Make sure that the design of the shop includes provision for:

Work out carefully beforehand the size required, the exact position and how the signs are to be fixed. There ought to be strict observance of the established house style

Once the shop is set up then it is possible to make special features, all generated by in-house computer design techniques. They could well include:

• Signs suspended above table features to give context to the displays below:
• Shelf edge signs (so-called shelf-talkers) to give more precise sub classifications of books, or to highlight authors or to feature a particular title;
• Notice boards at various strategically placed sites, advertising the shops services
• A best seller display with titles prominently numbered
• A notice board advertising local cultural events

The Architect will produce rough plans for discussion and then final plans for approval

The QS will ensure that permissions are cleared: with the landlords architects, the local fire authorities, the planning department and any environmental agencies. If the plans involve the fabric of the building being altered then the landlord will need to be asked and it is possible that a structural engineer will be required for specialist advice The Quantity Surveyor should produce a brief that should cover the following topics:

• Contract sum/date for posession/date for completion/production of drawings/Insurance on site/Separate contracts for special items
• Legal approvals
• Site entry/ existing services to be maintained/auxiliary services required/fencing & compounds/sign boards/setting out
• Site meetings - dates, who attends
• Communications - architects instructions/ consultants (if any) instructions
• Correspondence: who originates, who sees copiesApprovals (samples etc.)
• Information: drawings, specifications, schedules, drawings issues/main contractors progress/sub-contractors drawings
• Finance Certification/Variations/Dayworks/Bills of quantities/Financial statememts
• Quality control and site visits: Consultants Structural engineer/ Quantity Surveyor/ Architect
• Requirements: photographs /sequences/ model(s)/access/staged

Once plans have been finalized list all the fixture requirements and decide which supplier to use by seeking quotations if appropriate. Prices may well contain an element for installation, so it is worthwhile assessing these separately, in case the builder on site is able to do the job more cheaply. Sources may vary for metal, wood wire and plastic fittings and trade associations can sometimes provide lists of sources. If not then several European organizations exist, notably that which organises the yearly trade fair for shop fittings in Dusseldorf.

Window display fittings can also be obtained from specialist window display companies.

Fixtures for equipment e.g. pivotal arms for VDUs will probably be available from other sources, most likely those from when electronic equipment is obtained. Care must be taken to integrate the delivery and installation of the fixtures and fittings with the building works so that the latter are not interrupted whilst progress on fitting out is not held up.

Once decided on the systems approach to be taken, agree which particular lighting system from which manufacturer and check the costs of usage before ordering. At the same time agree with the electricity service provider having clarified the most appropriate service for the systems

The heating, ventilation and/or air conditioning equipment, having been specified by the professionals (and in a large building this may need the services of a heating engineer) go out to local suppliers on tender, since there can be substantial differences in what appears to be comparable equipment. Order with appropriate suppliers having investigated suitable tariffs

Integrate the installation with building works, especially those of the contracted electrician, who needs to be fully informed about the intended equipment for load calculations.

The electronic element of the book store is of critical importance. The efficient running of the store will depend upon the use of electronic equipment and considerable care should be taken to make sure that whatever the system it is appropriate for all the identified functions.

For a bookshop's sales and stock records, a computer system is becoming essential. There will be no need to design one especially since a number of excellent systems exist in Western European and North American book trades that can be easily adapted to local use. It will be important to take on a system that is capable of carrying out all the roles for which it will be required. These will include:-

Some books from local suppliers may be without EAN/ISBN bar codes, although it is to be hoped that the majority of books bought will have been properly allocated an ISBN. It will be a requirement of the store that delivery notes/invoices must state the ISBN, so that as a part of the process of checking goods in the bar code can be added to the book if it is not already in place. this is easily achievable if the necessary software and a printer is added as an adjunct to the bookshop’s computer system and that part of the process of physically handling the goods on delivery is to sticker them with bar code labels.

EDI (Electronic Data Interchange)

An essential part of the electronically ordered book trade is the need for the computer system to be able to ‘talk’ to other computer systems - to the book stores suppliers and to some, at least, of its customers as well e.g. the main libraries. Major suppliers regard the EDI communicated order to be the fastest and most efficient way of transmitting orders and in some cases the package on terms can be improved if EDI ordering is offered as a standard.

Power protection - it is likely that power supplies may have significant voltage variations and are subject to surges. It will be vital therefore to build in adequate protection against these ‘spikes’ and ‘brown-outs’, and this is best achieved by putting a powerful buffer between the mains power supply and a dedicated line to the computer system (it should not be connected in any way to other forms of power within the store).

Networks - If the bookshop is of any size, i.e. on several floors or stocking more than a limited range of books it will almost certainly need at least one computer screen and keyboard on each floor and in a number of cases, printers as well. In addition computing facilities have to be available at the point of goods deliveries and at the cash desk (at least two VDU’s and keyboards). All these can be connected by one of the industry standard network packages - Novell is one such that has been tried and tested in book shop conditions.

Computer hardware servicing - it will be as well to ensure that the equipment is bought from a reliable hardware manufacturer and one with the ability to provide on site maintenance under an extended warranty. The equipment is going to be so important to the running of the store that it would be a short sighted measure if the initial capital outlay did not take account of this very necessary on-going cost.

Software servicing - it ought to be possible for software problems to be solved ‘at a distance’ that is to say that the dedicated system supplier ought to be able to correct faults by accessing the bookshop's software from a remote site via the modem. It is very important to establish that this is going to be possible because the system will almost certainly ‘crash’ from time to time and help will be needed, often urgently, if the business of the bookshop is to continue satisfactorily.

Standards of EDI - there are European standards for all book trade electronic communications. These have been established by EDItEUR who publish a manual giving full details. These standards will be important when dealing with larger publishers, wholesalers and major customers such as libraries all of whom are likely to be operating such standards.

The bookshop will be able to build up its own database fairly quickly from the recommended titles from publishers that form the opening stock and early purchases thereafter and great care should be taken to do this, including the adding of titles, not necessarily stocked, but for which requests are received. It may well that the more electronically minded publishers can help with this task by downloading their data files, but this has to be dealt with in an expert fashion and care taken to avoid corrupting data already held. The national database, however imperfect should be accessed, preferably by using the CD-ROM version if available, and foreign language databases should include the Global version of the Whitaker Bookbank (Bowker-Saur) which would take care of all English language publications, together with Electre for France and one of the major German wholesalers databases for German books. Some research should show what else is needed, including other national databases such as the Spanish, but it is likely that other language selections can be built up from suppliers own databases. In addition consideration should be given to using one of the BookData databases so as to be able to easily produce catalogues and lists and to provide better information to enquiring customers.

This can be built from customer enquiries and orders and from asking customers to fill in a catalogue or mailing list request form. It is possible to accelerate the process by adding, on a speculative basis, the names of persons identifiable as having an interest in books, e.g. named academics, teachers, librarians etc.

For the accounts section of the bookshop a dedicated computer is needed. It need not be a part of the EPOS/Stock Control system and need only to be an adequately sized PC loaded with one of the standard accounting packages, that will be used to produce:-

• The Nominal Ledger - i.e. details of all transactions affecting the business financially.
• Purchase Ledger - details of all buying transactions
• Sales Ledger - records of goods supplied on credit
• Payroll - with all the relevant regulatory criteria built in
• Production of management and audited accounts
• Word processing, using one of the industry standards.

This computer system can be connected up through the network to the bookshops main computer system and this will facilitated the exchange of information and files between the two system.

Choose the main publishers who appear to be able to provide the largest part of the stock and ask them to provide their recommended basic stock lists, and if relevant have their representatives call. Talk to wholesalers known to provide good services - they may well be a significant alternative source of supply. (See sections below on likely sources of supply)

Using any available directories, set up a mailing list which includes all sources of supply and prepare a letter, which should be as positive in tone as possible, that sets out the new bookshop's plans and what is required of suppliers (see section on terms, below)

Match the bookshop's own ideas about suitable titles against the suppliers own core lists for bookshops of a similar kind and then amplify both lists as necessary. Remember that the bookshop is only going to be as good as a really intelligently worked out range of stock can make it.

Every bookshop ought to pay particular attention to the locality in which it resides. Local interests will be dictated by the nature of the place, but may include local history, old photograph collections, natural history, industrial archaeology etc., local publishers ought to be seen and talked to, since their advice about the local book market is always welcome and they will be pleased to welcome a new bookshop. Look out for particular aspects of local culture and taste that may affect book choice.

Clarify the position on non-book book merchandize and identify suppliers to obtain their stock lists. It is best to start with a few, good quality suppliers with comprehensive catalogues and to concentrate on those who are already used to dealing with the book trade. Adventurous buying can come later, since it can be a risky and expensive business.

Once the information about stock has been gathered and sorted, data can be inputted to the computer's stock database by calling up the relevant titles from the national bibliographies, or better still by accessing suppliers, particularly wholesalers, databases. A complete a record as possible before the stock actually arrives makes for a much more efficient set-up programme for the shop in the wake of shopfitters.

If the computer's database has been prepared then producing the orders for the opening stock should be comparatively easy. But bear in mind that if this is not possible then preparing orders by hand is a long and time consuming business and can lead to possible inefficiencies, such as ordering titles twice or missing them altogether

This requires careful vetting of current publishing. Some book trade magazines carry very useful summaries of new title publishing and these can be very helpful in making selections. Err on the side of caution in buying quantities: if the sourcing of supply has been properly worked out it is easier to go back for more.

A new book store would be expected to carry a full range of local publishing. This is not particularly difficult in terms of numbers of titles to be stocked, but it does represent a problem for the image of the store. For whilst local publishing is often flourishing, some of it will inevitably badly designed, poorly produced and meretricious. It will be unwise to buy in many of these titles and they should not be prominently displayed. If such publishing improves, it must be given every encouragement and the best way to do this will be to place heavy emphasis on stocking and selling quality fiction and non-fiction for which, surely, a sizeable market exists. The aim should be to try and stock all such titles and to promote them whenever possible. In this way, working closely with quality publishers, it will be a mutually beneficial process: the shop will rapidly gain a reputation for being a reliable stockholder, thus increasing its potential as a source of mail-order sales.

Parents with disposable income tend to supplement the quality of school materials with books purchased themselves. It is to be hoped that the school text department of the store can work closely with textbook publishers to ensure that the shop earns a reputation for carrying a comprehensive selection of learning (and teaching ) materials, since the overlap with purchases of books for other purposes could be considerable. Academic text books can sell very well in the proximity of institutions of higher and further education. In which case, a systematic approach to academics at all institutions of higher education to work out with them realistic set text lists, offering advice about likely availability will lead towards the book store becoming the destination for students.

These fall into a series of niche markets and the buying and stocking of appropriate titles in areas of the professions such as medicine, the law and the pure and applied sciences is likely to be closely linked with the acquisition of key titles from foreign publishers. This will especially apply in the field of business and management, where the right selection of titles and a close working relationship with specialist publishers will make it possible to employ target marketing methods to reach a potentially large and steadily growing audience.

Translations of English language best selling series of computer books (e.g. the “... for Dummies” series) are usually widely available to complement the smaller range of domestic titles in this area. A comprehensive stockholding of both the national and foreign language (in practice almost entirely American-English) computer books will be a considerable magnet for many book buyers seeking help with their computers. This is a specialized area, with a rapid turnover in titles and a very short shelf life as one system of computing overtakes another, but the rewards are considerable. A member of staff who specializes in this area would be a great advantage.

These will be bought with an eye to quality, especially graphically, and the book’s ability to excite the interest of the child. such books can then be employed for face out displays to give the children's book section of the shop a particularly bright and colourful appeal. Care will be needed to avoid some of the very poor quality material that exists on the market at present, and every effort should be made to work closely with publishers of quality children's books on the promotion of their titles, with events, including author readings, and special display material to encourage interest in worthwhile books.

Academic texts will be a staple stock range and it will require the shop staff delegated to buy these to work closely with institutions of higher and further education so that lecturers of subjects that are supported by foreign language texts work out, well in advance, what texts are going to be recommended. It is recommended that staff ‘steer’ lecturers towards imprints that are easier to obtain, since regular failure to obtain the right texts in time will be very damaging for the book shop’s reputation. It will be important to establish close links with the representatives of the larger international publishing houses so that crises can be overcome and advantage taken of these companies willingness to see their business grow in the market.

The remarks about international publishers of texts apply to general reading in large part.

English: the main foreign language. This suggests that comprehensive ranges of the low priced paperback classics series should be stocked and prominently displayed, since even by Bulgarian pricing standards they remain remarkably cheap. Otherwise a range of paperbacks from the most reputable houses is recommended

French: the cheap paperback series should receive most emphasis, otherwise more care should be taken to work closely with institutions teaching French and the Institut Francaise, if there is one nearby

German: although this is a smaller market and German paperbacks tend to be more expensive, some reference books and literary classics should be stocked. Again a working relationship with a local Goethe Institut is a good idea.

Other foreign languages would require investigation although it goes without further explanation to propose that all European languages are represented in dictionaries and phrase books. It may well be that there exists a modest market for titles from neighbouring states.

Whilst there is forecast a sharp growth in the sales of these products in Europe, it is suggested that extreme caution be exercised in this area. There are relatively few owners of Multimedia equipment and they, by means of the equipment they own may well be used to ordering material from overseas sources and only a comprehensive range of items would persuade them to switch. Such a large investment is not likely to be remotely sensible in financial terms. However, a few basic multimedia products might be stocked and demonstrated for novelty purposes, although the security problem should not be overlooked. The time will no doubt come when multimedia usage does take off so having one foot in the market from the beginning will certainly be an advantage.

There is a very strong case for complementing the book stock with paper related product especially in the children’s area. The most obvious candidates would be gift cards and art reproductions, especially in postcard format. A careful choice of quality product in this area, does much to improve the brightness of the shop and it is possible that with the necessary ‘know-how’ access gained to well known international ranges. Because of their rapid obsolescence, diaries and calendars are a good deal more risky until the market is better judged. Wrapping paper and gift tags should be considered, especially seasonally, when combined with a gift wrapping service

If the owner is not personally managing the bookshop, it will be crucial to choose the right management. The main qualification will be the person’s knowledge of modern retailing methods, rather than any detailed knowledge of the book market.

This is of paramount importance. Modern retailing is technically a complex subject, with a heavy reliance on electronic methodology. Familiarity with this approach to selling books will be essential. First hand knowledge of international publishing will be useful but not essential. A keen sense of the best methods of merchandizing books will also be important. It will also be important to be able to train and to motivate staff to be able to obtain the quality of service required for the success of the bookshop. If the shop is of any size there will be a need to delegate management of the shop floor(s) to others. A senior member of staff responsible for each floor would chime well with the obvious need to have book specialists e.g. fiction & literature; scientific, medical and technical; children’s and school books etc.

The people must be of superior calibre. They should be literate, and will know about books - up to a point. Most of all they must have a very positive attitude to selling books. This is less easy than might seem the case: plenty of people who apply for jobs in bookshops appear on the face of it to be suitable, but they lack the motivation to ensure that the store they work for maximises its sales. If the proposed bookshop is to work efficiently then it must be apparent to anyone entering its doors that as a potential customer they really are going to be well looked after. Nothing will be too much trouble, especially when it comes to helping potential customers who are ill-informed or just downright vague - it will be the shop staff’s mission to turn that very vagueness into a sale, and have a very satisfied purchaser who will want to become a regular customer. It is the practice currently to pay lower wages to retail staff and booksellers are no exception. This should not be the case. For excellence of service has to be paid for and highly motivated staff do not come for a pittance. On the other hand to be well paid will lead to a high degree of commitment, which is exactly what is required.

Establish the criteria needed to select the right staff. They will to be bright, willing and friendly. They should be neat and tidy although overly formal dress is not required. Most of all they should be passionate about selling books (and this is not necessarily the same as wanting to read them). A good manager appointed first, will be the essential arbiter in selecting staff and in effect choosing his ‘team’. Curriculum vitae should be matched against the job descriptions for the role for which the candidate is being recruited. The attitude of suppliers towards the bookshop will be much affected by the quality of staff. They will realise that the bookshop needs their committed support if they find themselves dealing with superior staff and people prepared to meet them half way on launching new titles and authors.

Each member of staff will receive a job description which gives precise information on the nature of the role they need to play. Terms of employment are based on the staff members performance against the job description and consistent failure will need to be disciplined leading to dismissal if the member does not improve their performance. A bonus scheme be considered in order that staff can identify with the performance of the shop and that high performers obtain the opportunity to study book selling in another country on a short, part paid for sabbatical.

Regular weekly training sessions will be necessary, probably by having the shop open 30 minutes later, say on a Tuesday. It might be worth adapting materials that are used, with great success, in one of the EU member states, such as the UK, the Netherlands, Germany or Denmark all of whom have very full courses, some designed for distance learning. Translating materials will be a problem to begin with, but it may be possible for some English speaking staff to use materials from the English speaking world. Training sessions will cover basic skills in operating systems and equipment, handling transactions, controlling stock and serving customers. More elaborate schemes will be put in place as the book store management finalize their modus operandi and allow themselves to codify procedures for say customer service (which will depend to some extent on the logistical arrangements that can be put in place). It ought to be a requirement that all staff go through an induction course and thereafter that they acquire further skills as a route to advancement.

Considerable care and attention needs to be given to the establishment of Health and Safety regimes, to the issuing of clear instructions, to notices posted in strategic places in the book store and to regular training sessions devoted to the subject. It is as well if at least one member of staff receives specialist training in First Aid.

The concept of a service oriented book trade is foreign to much retailing. So the range of services that can be offered by a bookshop will quickly mark it out as an exceptional source for books and quite different from any rival operation. The build up of services needs skills application and continuous staff training.

It is a characteristic of book buyers that over half do not exactly know what they want and many potential book buyers do not even enter bookshops because they are too apprehensive about making fools of themselves. The layout of the bookshop must be user friendly, as will the sign-posting and notices, which will emphasis the services on offer and the need for customers to talk to staff about their book needs. Staff training will concentrate on the ways in which customers can be encouraged to discuss their book needs however vague and help will be given to those visitors who need help with advice about book selection . Training should also concentrate on getting staff to absorb as much information as possible about the ranges of books available. Staff must be thoroughly familiar with the use of the computerized bibliographic databases. The atmosphere to be created is one that will cause potential customers to want to make a detour to visit the bookshop, often just to browse. However the offering of help and advice is, and must be seen by staff, to be directed towards increasing the shops turnover, whilst making customers feel at home at the same time. This will be a difficult but important balance to preserve, since the atmosphere must not generate into one of high pressure selling, with customers afraid to ask questions.

It will not always be easy for customers to locate particular titles, however clear is the sign posting. Staff must be trained to look the title up on the computer’s stock database, so that they will not only know whereabouts the title is to be found, but also the status - is it on order? is it available? If the title is in stock, staff will, almost without exception and regardless of what they are currently doing, take the customer to the place where the title is to be found and locate it. If by chance it is missing (i.e. a victim of errors of data inputting or shoplifting) then the next step, “can we get it for you?” must be taken.

With the right supply arrangements in place, it ought to be possible to offer the enquiring customer the service of ordering the book, for many of the likely enquiries. Every effort must be made to order the book or to arrange for a title to be set aside when a stock delivery containing the wanted book arrives. The customer will be handed a special order slip, with some idea of the likely delivery date. The customer will then be telephoned or sent a postcard when the book arrives. Addresses caught by this process will, of course, be added to the mailing list. Speed of delivery is an important part of customer service. Arrangements for special orders need to be reliable, so that staff, properly informed, can tell customers when they might expect a book.

It has already been pointed out in this proposal that books are frequently bought as gifts. Much can be done to encourage this trend by catalogues, displays etc., but schemes for book buyers can accelerate the process.

A number of countries run national book token schemes with varying degrees of success. Unfortunately since the schemes are not relevant in other countries, they do not export. The bookshop can however consider launching a scheme whereby customers are encouraged to buy a dedicated voucher, wrapped into a gift card, as a form of gift giving. The promotion of this scheme will also serve to promote the general idea of books as gifts and will serve to highlight the bookshop's services.

A range of wrapping papers should be stocked which customers can buy in anticipation of trained staff gift wrapping their purchases for a small charge, or possibly for free. Promoted widely at Christmas, it will also serve to highlight the bookshops’s qualities. It is worth looking into the bookshop launching its own design of paper, that could be linked with aspects of bookshop's overall design and logo.

The bookshop should be a lively and interesting place. Considerable care is needed to achieve this. A wide range of titles attractively displayed will be the most important element in the ambience of the book store. Style, design and furnishing will all contribute significantly, as will fixturing and lighting. However finally the ambience is created by the staff - their willingness to help, their friendliness and their display of lively imaginative bookselling.

Price promotions can, if there is no fixed price regime in place, form an important part of the marketing mix. From time to time, windows and in-store displays will be given over to bargain priced books. For example in January, the traditional time for ‘sales’, the shop can run down its Christmas stock, get rid of titles it has been unable to shift and complement this with titles bought in for the occasion, to make for a combined major bargain book sale, with suitable special point of sale and adverts in local papers. Such a SALE can quickly become an institution, whilst serving also to keep stock levels under control.

The relaxation of rules about shop opening hours in the Western European economies has led to bookshops, especially the groups, following the US precedent by opening their stores at very varying hours, notably late into the evening. Evening opening, especially at the end of the week should be considered, if resources permit. Provided it is permissible, Sunday opening should also be considered, even if other retailers in the vicinity remain closed. This represents an important service: for it is demonstrable that where book stores do open into the evening, they are well attended and extra books are sold.

Consider means by which customers having once visited the bookshop can be persuaded to return. Special offers to regular customers can be built in to a 'loyalty card' scheme, together with invitations to events and private, evening showings - of books for Christmas, for example.

The success of the bookstore will depend not just on volume but on the trading margin it is able to earn. Careful negotiations with suppliers under the following heads is called for.

Discounts The basic discount sought, should reflect the stores preparedness to stock titles in depth, systematically, order up from the publisher any title in their back list and work closely on promotion. The future of commercial book selling throughout Europe depends on bookshops being able to pay high street rentals and invest in quality staff and terms of trade will therefore be increasingly weighted in the retailers favour.

Rights of return have to be carefully negotiated. It may well be better in some instances for the title to be bought firm (i.e. without return rights) in the clear understanding that any stock unsold after a certain time would be sold off at reduce prices in order to clear it from the shelves. On other occasions a publisher may want the bookshop to take a significant quantity at high risk in which case a ‘see-safe’ policy must be adopted, that is that any unsold stock is returned to the publisher after a defined period without question. Overall returns should be kept to 10% of purchases, as they can prove to be expensive to process.

Pricing policies These are difficult to determine if the status of the fixed price is uncertain. Suppliers must be made to recognize that the bookshop reserves the right to set its own prices. The situation is quite different if there is a fixed price law, since the bookshop cannot reduce prices to clear unsold stock and must, therefore, have better rights to return this old stock.

Payment terms The cash flow of the bookshop depends on favourable terms of payment, customarily one month, although this may be longer with some foreign suppliers, especially from those suppliers with long delivery lead times.

An overall ‘package’ This is often the best way of establishing a sensible trading relationship with a supplier. Such a package might include a relatively high discount in return for a commitment to stockholding and promotional support and a reliable payment record together with a sensible returns level. All main suppliers should, if possible, be dealt with this way and it will therefore make it easier to fit other suppliers in on the same basis if they do not want to be left out of the bookshops perceived success. This approach is standard practice in the Anglo-American market.

A general trade wholesaler may well be an important element in an inefficient distribution chain. However it will be of critical importance to maintain direct and close links with all the main publishers, and it would be preferable for these to supply the bookshop direct, provided that they can be relied upon to deliver the right quantity, quickly and accurately. The bookshop will have to work hard to build up a reputation of supplying almost any book in print within the shortest possible time of the book being ordered. This ability to service the multifarious needs of the entire book market will be a most important factor in the bookshop's eventual success. Failure to offer such a service, on the other hand, is to expose the bookshop to considerable competitive pressure from rivals wishing to out do it.

Obtaining books from key publishers overseas is desirable, given the need to maintain close and friendly relationships with major suppliers. The new bookshop needs to explore exactly how each publisher proposes to ship books and how the urgent order can best be sent, for the same reasons of being able to offer high service standards to customers, especially those in the academic and professional spheres. This data should be stored on a computer database so that staff can access it when dealing with customer enquiries.

This is a possible route if a distributor is known to carry a wide range of English language titles. However it must be recognized that it is extremely unlikely that any such importer is going to be able to meet the needs of a large new international book store and if a trading relationship is established with such an importer it must be clear that it is only for urgent or top-up orders.

Major trade wholesalers such as, for example: Bertrams or Gardners in the UK; SODIS in France and Libri or KNO in Germany are likely to be key suppliers. All these companies have wide stocks of titles in their respective languages and the British and German wholesalers in particular offer an almost comprehensive service, using reliable forms of shipping. It is very likely therefore that the proposed new book store would rely on these sources of supply very heavily and it may well be that deals struck with them might lead to both a simplification in the supply chain but also an improvement in margin through cost savings. This is a matter that would need to be explored carefully leading to detailed negotiations. The considerable merit of this course too is the import of expertise - for such suppliers can provide a wide range of product knowledge and they offer sophisticated means of Electronic Data interchange, thus speeding up the ordering process

Adopting Western European methods of assessing the potential market and using market research will be extremely difficult given the almost complete absence of any reliable objective market data. It may be that this situation will slowly right itself, especially if other branches of the communications industry employ such techniques e.g. media research by newspapers, magazines and radio/television stations. But the absence of any raw data on book buying and usage will hamper efforts. It will be up to the store therefore to conduct its own research. This can be undertaken in a variety of ways:

• Devise a questionnaire asking for demographic information at the time of purchase. a prize might be offered on a ‘lucky dip’ basis.
• Ask students to undertake a street questionnaire by interviewing passers-by. this approach can often reveal more about designing the appearance of the bookshop to appeal to the casual book-buyer.
• Prepare some form of simple set of questions in connection with an advertized book promotion. a high profile promotion or competition can often attract large numbers of entrants for a relatively modest prize. This is also a good way of gathering names and addresses for mailing list purposes.
• Investigate target audiences e.g. question students at the university or contact local businesses seeking information about their book wants.
• Undertake a promotion with a national newspaper or magazine, which again asks simple questions of likely respondents. The media can often be quite helpful in this respect.
• When the data is available, employ Geographical Information Systems modelling using computer analysis to pin point possible markets

Considerable work will need to be done in finding out about the myriad sub-classifications of likely book purchasers. Visits will need to be made to all institutions of higher and further education in order to ‘pick off’ individual lecturers who may represent considerable sources of revenue over a period; to libraries, especially those where the librarian can be of particular help in identifying special areas of interest; to schools to meet as many teachers as possible; local society or interest group organisers; indeed any person who can be identified as being a likely customer or can lead to future custom. A special effort will need to be made with local businesses, especially those affiliated to international companies, with access to funds for buying books.

It is highly desirable to assemble all the relevant ideas, perceptions and know-how of the market in an overall marketing plan for the shop that can be used for the initial launch of the bookshop and thereafter for running appropriate promotions. Auditing this plan and amending it in the light of experience, is a useful disciplinary exercise. Such a plan ought to cover, in detail, the information gather about the market; the best ways of reaching that market; assessments of local media use; best routes for mail order; approaches to market sectors, such as schools, colleges and other institutions; approaches to children and their parents; display programmes; events and some form of cost/benefit analysis.

It is a good idea to work out very carefully the approach to be taken in copywriting, with, perhaps, some emphasis on a thematic approach or even an oft repeated copy line - "Bloggs Bookshop Best for Books!" and so on. the same applies to the design approach. the consistent use of a clear cut and very characteristic graphic design has an extraordinary effect o an audience that is more than usually educated in appreciating good typography and design, even if they are not aware of it.

The object of all the research outlined above and indeed of any approach by mail and/or advertising will be to increase the perception of a potential audience for a bookshop and to be able to target potential book buyers more and more accurately. It is important for the shop’s management to recognize that for it to succeed it will not be sufficient to open its doors and wait for customers to walk through them. Outreach techniques will be essential for the rapid growth of customer base of the store. Often arising out of the interest groups defined above but supplemented by address research (yellow pages etc.) and enquiry forms in the store itself, a mailing list, computerized (using database software) and subject classified, will need to be built up, firstly for promotional purposes, but then, more importantly, for mail order purposes. Seasonal catalogues can be easily produced using DTP software linked to the store’s stock file database (or using the BookData technique of a bibliographic database with promotional ‘blurbs’) and mailed to catch both the regular book buyer and the special interest group, or the gift purchaser, a Christmas catalogue would be a key item in a regular mail out campaign.

The most effective promotional activity is often generated by the bookshop working with publishers, but not expecting them to take the lead. One member of the staff could usefully be detailed off to look after promotional activity, reporting directly to the shop manager, who will want to co-ordinate promotional activity with new book publishing programmes and take advantage of the special promotional offers that are being made by publishers as part of the selling in process.

Attractive window displays are not easily achieved, yet really striking and original windows can create a whole image for the store. It will not be sufficient to fill the windows with books, indeed such a course of action will be most unwise. There is little evidence of Bulgarian publishers producing point of sale of sufficient attractiveness and there may well be considerable problems about importing P.O.S. material given Customs officers delight in imposing crippling import duties on it. Visiting foreign publishers should be persuaded to bring it with them, or to arrange for their shipping departments to pack it with books in such a way that it does not attract attention.

Every effort should be made to reflect the passing of the seasons and seasonal activity, so as to give the store a feeling of topicality. Easter, Christmas and other religious festivities can be celebrated and the advent of winter and summer ushers in changing leisure activity. Most importantly school and academic periods should be marked with a back to school window appearing before the beginning of each term.

Several opportunities for advertising have been indicated. Media research should demonstrate which medium of daily and weekly newspaper or magazine will have a readership most likely to contain a large universe of book buyers. Once selected, an arrangement might be struck whereby the book store takes a regular monthly space to advertise ‘new arrivals’ in an advertising site within the pages that is linked with cultural activity and at the same time the book store staff can provide a weekly best seller list for the medium to print, together with ‘bookish’ news and opportunities to meet and interview visiting authors. Heavy advertising is not necessary or wise given its high cost, but a judiciously placed advert can do much to draw a large audiences attention to the activities of the book store and can convey a sense of excitement and change to the potential customer, and of course, the adverts can also be used to promote interactive direct mail and selling activities with book buyers unable to make the trip into town. Poster advertising should also be considered, especially if local transport sites are on offer at recent rates. Look into train or metro station poster sites, bus interior adverts, taxi panels can all have their place. Outrageous but effective is the possibility, in some countries at least, of having ones own bus, painted entirely in the livery of the shop, but running on a good regular route. Floats can also be hired for special events and students and others be persuaded to be 'walking' posters - either as the traditional sandwich man (although the demeaning aspects of this form of promotion can reflect badly on the image of the bookshop) or by dressing up in costumes - children's book characters are firm favourites and many a bookshop has been well promoted by large Penguins and Puffins handing out promotional leaflets in the high street.

Otherwise the bookshop is probably on its own, which is no bad thing, given the extent to which it encourages genuine creativity. Life size models of papier mache are extremely striking and it may be that a local art or design school could be persuaded to help in return for a modest subvention of free books perhaps?. Graphics, sometimes three-dimensional ones (i.e. cut-out lettering) can provide simple but striking messages and with practice can be produced in-house. In particular leaflets, selecting choices of books or advertising a forthcoming event can be a powerful carrier of the right kind of message. Such material can be produced by using DTP.

Software should be acquired to enable the bookshop to produce its own camera ready artwork for leaflets, adverts, posters etc. Even a regular newsletter can be produced this way as can subject catalogues drawn from the book stores subject/title database. Careful rules will need to be laid down about the house style since it is tempting for staff to experiment with typefaces and looks within software packages of this kind, thus producing a most unsatisfactory melange of material. Rigorous adherence to the house style, possibly with the limitation of the use of only one or two typefaces will contribute to the book store having a very strong ‘look’ about it. For example classical Renaissance or Baroque faces for text and for text headings in catalogues and lists, will give the bookshop material a really bookish feel, whilst a Bauhaus Sans Serif face used for display purposes implies a pleasing, but unfussy, sense of modernity. Once learned these are easy packages to manipulate and much material can be produced at virtually no cost, except for printing and paper. Depending on circumstances and costs it may even be worth while adding a laser printer to the bookshop's plant so that material can be produced even more cheaply, but with quality preserved and instantaneity an added plus.

Every effort must be made to work closely with publishers to creatively interpret their lists to create opportunities for displays, promotions, competitions and events. Some will, inevitably, be more co-operative than others and there will be no harm in concentrating on these, for the need will be to create an atmosphere where publishers will want to talk to the book store about their new ranges. This is a sizeable culture shift that has taken place over the last 15 years, especially in the American and English markets, and it has been demonstrable that it is the most effective way to sell books. Such activity forms an essential part in the ‘package’ approach to negotiating terms.

A lively and interesting bookshop is always marked out by its willingness to participate in events. These can be varied and might include the following:-

• Authors signing new books and their back list titles
• Authors taking part in readings, discussions, interviews
• Books being ‘demonstrated’ e.g. a book on wine launched with a tasting
• Craft books linked with relevant craft activity
• Participation in local trader promotions - the street or area association
• Cultural events in co-operation with local cultural institutions
• Art exhibitions, linked to a title or series
• Book launches by publishers
• Cultural events organized with one of the foreign cultural institutes
• Poetry readings
• Events linked with local theatre or cinema appearances
• Topical discussions linked to books recently published.
• Special events for regular customers - who would be ‘invited’ to attend.

This document will be of considerable importance in the efficient and orderly running of the bookshop, for the systematic organization and operating of a bookselling operation depends on very careful attention to a myriad range of details. There can be no room for doubt about the correct way of doing things and every eventuality should, if possible, be foreseen. (See Appendix II for outline contents of a typical manual).

This is the life blood of the store and should be treated with the care and respect it deserves. All management and staff must be sure that the handling of cash is undertaken with the utmost care and that no risks are taken that might lead to incurring a loss.

Strict instructions will need to be given to all members of the staff given the responsibility for manning the till or cashing up. Routines will need to be established for the handling of domestic and foreign currency, cheques, credit and debit cards and other forms of international currency exchange. Given that this is an area where a wide variety of dishonest practices may well lead to serious loss, particular care will be needed to prevent fraud or theft. It is recommended for example that takings are regularly transferred out of the till (the most robbable part of the shop) to a ‘counter-cash’ container or directly to the shop’s safe, which will be carefully sited out of the direct sight of customers. On no account should this transfer become a matter of routine nor should it be observable, since thieves may well easily find their way to the rear area where the safe is kept (see Security below). The same caution must be employed in transferring money to the bank, so that staff undertaking this role are not put at risk.

Rules must apply rigorously for this part of the shops operations, for example:

• The till area must be kept tidy and clear of personal belongings at all times.
• The till should not be opened unless a sale is being made, or unless authorised by management.
• On no account should it be opened for persons asking for change, since this is often a prelude to theft.
• Cashing up procedures at the end of each day should be carefully worked out and a form designed to ensure that such procedures are always followed
• Any disparity should be investigated immediately and thoroughly. There is no guarantee that all staff are going to be completely honest however carefully they are vetted.
• It will be necessary to work out precise rules for operating at the till or EPOS system, once the choice of appropriate equipment is made and a manual produced which will form an essential part of staff training.

Once the financial arrangements are in place it will be necessary to open a bank account and to organise approved signatories for transactions (the owner may wish to reserve the right to sign all cheques) and to establish paying-in routines. Bank systems need to be understood and credit card machinery acquired with the necessary stationery to go with it. The bookshop will need a system of floats for the till and a sum set aside for petty cash. At busy times of the year it is worthwhile obtaining extra change from the bank in good time. Till bags are likely to be needed to transport cash, both inside the bookshop and to the bank.

Internal accounting books will need to be set up to record takings in an analytical way together with forms designed to regularise the cashing up procedures at the end of the day. Procedures to ensure that these are dealt with properly by the accountant are also required

The management of the stock will require the utmost care, since it is the major part of the investment of the enterprise. Systems must be put in place that ensures that rigorous control over the movement and maintenance of stock is adhered to at all times.

The bookshop must be a requirement of the shop that at its commencement it will have an efficient stock control system in place. This is best done by ensuring that all product carries bar codes and that all stock movements, i.e. goods in, sales out, write-offs, give-aways etc., are swiped by a bar-code reader. These will be attached to all computer terminals in the shop and it is recommended that at least one hand held terminal is available as well. The stock record should then, in theory, be completely accurate at all times with one notable exception - that of shop lifted items. This omission is identified when physical stock is matched with computer records, a process that should take place at regular intervals by staff delegated to look after particular sections of the shop. Staff should e on the look out when his task is undertaken, for 'gaps' opening p in stock -this may well mark a pattern of thievery that leads to more effective prevention, by tagging or by focusing cameras on the are for example. The computer should be programmed to produce a number of analyses on a regular basis:

• Sales per title - Daily or even more regularly for fast selling sections
• Titles for reordering, based on the above, but with heuristic analysis applied
• Titles on order not yet received - several times a week, so as to monitor deliveries
• Weekly best seller lists - not just the top ten, but numbers of titles, on a section by section or subject basis.
• Slow-selling titles - to be looked at, say, once a month for possible action (i.e. write-down)
• Thus stock control allows management to judge best the planning of investment
• Comparative sales by subject section
• Comparative sales by source of supply (it helps if gross margin earned can be calculated)

This activity should take place six monthly, and after the initial stock taking it is possible (subject to the auditor’s approval) that it can be done on a rolling basis, department by department. Stock can be ‘read’ by bar code readers straight into the computer where it can be matched against the theoretical stock. Care should be taken to identify particular areas where differences lie, so that security can be tightened up or an audit taken of the accuracy of the goods in/out situation for particular suppliers. Whilst it is a tedious task for staff they should be made to realise the importance of complete accuracy. A difference in stock value comes straight off the bottom line - i.e. their capacity to optimize their earnings. An effective stock-taking is generally as a result of the issuing of clear procedural instructions that all staff can follow closely. The auditors or accountants for the bookshop can often offer advice on this subject.

When designing the book store, careful account must be taken of the proper organization of the physical handling of stock. Procedures for each stage in stock handling should be carefully worked out and then monitored. Unpacking should be carried out quickly and efficiently (whilst this might seem obvious, few people outside the book trade realize just how formidable is the task of coping physically with large numbers of books). Trolleys, as employed in libraries, should be available to ensure that books are quickly and tidily distributed to their correct places in the store.

NB: proper stock handling is often the difference between a well run book store and a failure. Sales are maximized if goods reach their eventual destination quickly and correctly, staff operate more efficiently and the customer is often badly put off by piles of half opened boxes and books littering the shop floor.

A tidy and well ordered book store gains in its friendliness and ambience - no one really likes a mess and certainly a messy book shop does not inspire confidence.

The book store will need to employ cleaners for the heavy duty jobs, working to a carefully prepared briefed, but staff should work on a daily task basis on ensuring that the book store is always clean and tidy. A period of cleaning up first thing in the morning can be complemented by periods of shelf tidying and sorting towards the end of each working day. If staff are dedicated to a particular part of the store (it may well be the part for which they are responsible for stock-checking) the a certain pride of appearance can be a great morale booster, particularly if, within reason, the staff member can 'customise' their particular section. Care must be taken to select the right cleaning materials for the job: the wrong floor cleaner can ruin the surface of a plasticized floor finish. A 'kit' of materials should be assembled and kept together to ensure that it is properly used. Especially important is the cleanliness of the electronic equipment that can attract adhering dust and grime because of its electromagnetic qualities. Special cleaning kits can be obtained that do not harm the plastic surface of the equipment, whilst providing anti-static qualities.

Bookselling generates a great deal of paper card and plastic waste. It must always be cleared from the shop floor immediately and it helps if then there are clearly designated areas to where it might go. In the event that the local government is ‘green’ and has taken the trouble to provide for recycling facilities, then every effort needs to be made to set card and paper aside for recycling and arrangements made for this material to be regularly collected. On no account should old food be allowed to collect in the staff area, since this can quickly represent a health hazard. Again a rota for ‘kitchen duty’ helps to ensure that this area of the book store does not become a problem.

A careful policy on all aspects of this matter will need to be worked out, partly in order to satisfy the relevant authorities, partly to improve staff morale, and partly because of the security aspects of the subject. The Operations Manual must be quite explicit about all safety matters.

On health it is important to ensure that at least one member of staff is delegated to be First Aid trained and that First Aid boxes are placed in the appropriate places within the store and that they are properly maintained at all times. Staff training should focus on particular health risks, especially the need to lift and move heavy boxes in the proper manner. Work place accidents will need to be properly recorded and reported.

Safety matters should include Fire Exits and evacuation procedures; the use of alarms, including the use of a ‘panic’ button under the counter by the till; access to emergency services; having the right fire extinguishers in the right places and making sure that staff are aware of which is to be used for which kind of fire; protection from unwonted radiation from VDU’s.

Clearly laid down procedures are needed for dealing with attempted robberies; violence in the shop; fire; bomb threats and so-called ‘Acts of God’. All staff should know exactly what to do in an emergency and how to evacuate the bookshop of customers and what to do in the event of a complete evacuation. The manager will need to ensure that very simple and clear instructions are posted in places where staff can quickly consult them in the event of an emergency. It is vitally important that every member of staff is quickly inculcated with the need to fully understand all emergency procedures. Learning about them when the emergency has started will be too late.

It will be necessary to insure the premises, for the landlord and/or the bank will require this of the bookshop. The insurance company will almost certainly lay down clear instructions on the precautions to be taken to prevent unnecessary loss. This will include prescribing the right makes and types of safes, locks and bolts, fire door closures etc. Insurance or local government inspectors will also wish to see fire regulations strictly observed so that, for example, goods do not block fire exits. A favourable insurance premium can often be arrived at given that bookshops do not represent high risks to insurance company's actuaries and provided that all the insurance company’s recommendations are closely followed. Some bookseller trade associations have special insurance scheme arrangements for bookshops.

The following matters are likely to, or may, fall within regulation:

• Restrictions on the premises use, sometimes contained in a 'user' clause in the Lease, can be inhibiting, when, for example limitations are place on the use of windows or audio-visual equipment,
• Limitation of trading hours and days, but see note about extended hours
• Rules governing employment, especially terms and conditions - these are often very detailed and require special knowledge. In some languages manuals exist that provide detailed information on the legislation with updates being issued at regular intervals.
• The use made of the area to the front of the book store is often limited both by the lease and by local government regulations. By the same token however, such rules will prevent misuse by others - such as stall-holders setting up in front of the shop's windows.
• Fire prevention procedures need to be examined closely and followed scrupulously to avoid the risk of closure by the fire officers
• Emergency procedures are partially a matter of common sense, but also need to follow national legislation in regard to safety regulations.
• Health and Safety Regulations are usually complex and generally require the bookshop to put up official notices governing these matters.
• Imports and Exports are, regrettably, subject to a wide variety of rules, despite the existence of rigorous international rulings, such as the Florence and Schengen agreements. Only too often imports are made the slower, not because of regulatory controls but the desire of customs officials to be unnecessarily bureaucratic about books.
• The copy and design of advertizing and printed publicity material should be carefully monitored since some countries take a strict view about what is permissible in advertizing copy writing. Special care is needed when reproducing publishers sometimes controversial material.

The way the book store communicates with its own staff and with its customers is, too, a hall mark of an efficient bookselling operation. A clear understanding of the importance of proper communications must be fully understood and the use of staff training sessions on the subject will be important. Good communication will lead directly to profitable trading.

Whenever possible the best means of communication is by talking and listening, be it with customers or with staff, or indeed with suppliers.

Customers, or more importantly potential customers need to be talked to in a friendly and helpful fashion and then listened to carefully in order that their needs are fully understood. A welcome smile works wonders, together with an approach which suggests that the enquirer, however tentative, will get a sympathetic hearing. Once contact is made a conversation with a customer may well lead to extra sales and a greater desire on their part to return to a friendly, ‘bookish’ environment.

It will be vital for management to keep in constant touch with staff so that they are closely involved in the running of the book store and are kept up to date about current developments - in the book world; in the fortunes of the store; in any matter that might effect their performance.

These need to be on a regular basis, preferably once a week, first thing in the morning, when the shop may open say half an hour later. Whilst this is a good time for staff training, the most important aspect of any such meeting is the possibility for staff to talk about and listen to discussions about the current book trade situation and aspects of the bookshop operations and management. Issue based discussions can often lead to creative collective decisions and can contribute significantly to the team spirit. Care must be taken to ensure that part time or shift working staff are not cut out by this method of communicating however.

Care must be taken to ensure that all letters, cards etc. go out on the official stationery of the book store and adopt the correct style. Letters should be concise but friendly, concise but fully informative and correct in both spelling and grammar. Individual staff members are not to be encouraged to use written communication unless using predetermined forms.

As indicated, verbal communications are preferred, unless the communication needs to be formal: terms of employment, disciplinary notice etc. Memos between staff are to be discouraged if not banned.

Short and clearly laid out notices can keep staff informed of essential facts - health and safety requirements, staff rotas, holiday schedules etc. Notice boards should not be used for lengthy documents nor for confidential data e.g. suppliers terms of supply - which belong , more properly, in the operations manual. Statutory notices must be prominently displayed.

It will be important to ensure that proper records are kept and the management must become aware of statutory requirements in this respect - staff or customer accidents for example.

The telephone must always be answered promptly (arrangements for a member of staff to be particularly alert to do so, can be helpful) and a carefully worked out response used. If a query is to be answered then it is helpful if the customer is spoken to at each stage in the enquiry (a running commentary whilst using a screen driven bibliography is helpful). If a message is to be taken then a pro-forma message pad should be used that ensures that all the right questions are asked and answered. Telephoning customers about specially ordered books arriving is a valuable way of making the bookshop reach out to its customers.

Given the high cost of Telecoms, it would be advisable to train staff to use the fax as an alternative to telephoning, provide that the hit rate for successful faxing is sufficiently high. Pre-prepared fax forms that require minimal intervention by the person dispatching the fax should be made available, and faxing orders should be carefully checked since the tendency for faxes to disappear into ‘black holes’ would not be helpful to the book shop’s reordering routines. EDI transfers should always be preferred.

Since the bookshop will probably have modem access to telephone links it makes sense for the additional software to be added to the computer system to allow for e-mail communication, especially since many suppliers can be best reached by this means. Academic customers are increasingly open to e-mail correspondence, as are libraries. Considerable economies in telecom costs can be achieved by the use of e-mail, with consequent greater efficiencies.

A watching brief on this form of selling and informing customers should consider when it would be a strategic advantage to launch the bookshop’s own home page, especially if it can specialize in a particular area or offer students carefully selected study material. Perhaps the most exciting prospect, however, is the use of the Internet to sell books to distant customers, whilst at the same time using the web page as a form of publicity, advertizing forthcoming events for example. There are striking examples of this happening already, for example the already famous Amazon site, but realistically this form of marketing is likely to have only minimal impact on any local market in the short term given the thin spread of Net users in many countries. However, the Information Society, with its prospects of a billion more users by the year 2000 is an area of the book market where the pace of development is tremendous and all kinds of possibilities could open up - not least the concept of a Cyber cafe being part of the bookshop.

The bookshop cannot exist in isolation and it needs to establish a firm working relationship with a number of bodies, who may be able to provide useful help, leading to extras sales

Most governments have Trade or Commerce Ministries, with a special mission to provide help to the Small and Medium Sized Enterprise sector (the SME's). Sound advice and sometimes even individual consultancy is on offer and a number of schemes exist to give financial support. Local libraries can provide information, as can local government departments. Access to Web pages can almost certainly provide more information.

Foreign national representatives, such as the Goethe Institut or the British Council are helpful in many ways, notably as a source of information about their country's book trade.

It is usually very important to join the booksellers association, because the membership brings real advantages, especially as a means of accessing professional know-how.

Relying solely on the country's postal service can prove expensive as trade to customers further afield increases. Investigate commercial delivery services and find out if the trade association has a special deal with one of them.

Artisans are needed for vital repair work. Make sure that a regular arrangement is put in place, particularly with a plumber and an electrician, both of whom should be available for call out at short notice. It is also helpful to have a friendly carpenter to make any changes to the bookshop beyond the scope of the staff.

The local book trade magazine is an essential information and bibliographic tool. It is also worth considering subscriptions to the British Bookseller, the French Livres Hebdo and the German Borsenblatt. Journals that provide information about the activities of the film and T.V media re also important and the bookshop should make itself aware of the review pages of the quality newspapers and literary magazines.

Bookshops are likely to be exposed to a wide variety of threats, some unbelievable a few years ago. By far the most significant security problem is the loss of stock and there is no reason to suppose, human nature being what it is, that the problem of ‘shrinkage’ and ‘defalcation’ will not be as important for the bookshop as for any other retailer. Consideration should be given to a variety of preventive measures, including convex viewing mirrors placed in strategic points in the store, especially in awkward corners; closed circuit television cameras linked to video recorders (although this is an expensive system which requires continuous maintenance) and some form of system of tags that sound the alarm if a stolen book is taken out of the premises.

Probably the most reliable, and certainly the most widely used system in European retailing is the tag that, when passed through an electromagnetic field sets off a high pitched alarm sound. Tags are easily inserted into an assortment of books, especially those most susceptible to stealing (computerized stock control will tell the management which books or series these are likely to be). The customer or thief is usually unable to detect the tags and books that have actually been sold can be easily deactivated by staff at the point of sale. The only problem is knowing whether or not it is possible to affect an arrest once the thief has been caught i.e. avoiding undue unpleasantness or even violence. One solution to this is to employ a uniformed security guard, who will both act as a deterrent to prospective thieves and as a useful ‘policeman’ in the event of an arrest. There are other forms of tag than the electromagnetic, such as that activated by acoustic signals or the radio frequency tag as used in many libraries. The most widely used however is the so-called EM tag. Only one or two companies provide this equipment throughout Europe and it is not difficult to see such a system in place and working in most Western European states.

Source tagging is one further inducement for adopting this methodology is the prospect, now quite imminent, that European publishers will start to place these tags in books at the point of manufacture and this will mean that the tags will be impossible to detect and will be there to catch thieves without any further work by staff in store.

It is a regrettable characteristic of modern retailing, and it seems to be an odd liability for booksellers, that there can be a threat of violence. this can be associated with stock theft, but it can be brought on by what the shop actually carries in stock - a matter of particular concern during troubled political times. Staff training ought to include the full range of protective measures against such threats, including what to do if there is a bomb threat or if there is a fire warning. Evacuation procedures ought to be clearly understood by all staff, however junior. This approach to security may seem to be extreme, but the number of bookshops that have actually been attacked in Europe is surprisingly high and the consequences for staff extremely alarming. Special care is needed with titles that can be targeted by extremists, for example Salman Rushdie's Satanic Verses, which has actually caused a number of outrages and more than one death..

The insurers of the business will wish to make sure that the premises are secure and will almost certainly recommend a particular standard of safe (fixed to wall or floor) and locks to a certain standard. Premises security systems that may be needed include grills for front doors, all-night internal lighting, security lighting the fascia etc..

Keys - since the shop will have sufficient staff to be open for lengthy hours a rota system of key holders will be needed, I.e. a number of staff members will need to be key-holders. This needs to be very carefully controlled and the management must ensure that every last set of keys is accounted for. Especially relevant is the need for keys to be handed back when no longer needed e.g. when a staff member leaves the employment. Certain key holder s will need to register with local police in the event of problems out of hours.

Alarms - these may be a lease or insurance requirement. they are not necessarily much use

Combined security cover. If the bookshop is a unit in a Shopping Centre then the centre's own security team have an important role to play, so before signing any lease ask the questions: what are their security services? is there a link with the shop? how can they help? how quickly do they come on the scene in an emergency. In addition some local traders band together to participate in schemes of information exchange when they know that thieves or other threats are in the vicinity.

Closed Circuit Television - investigate this as a possible option, but be aware that it is expensive and unfortunately after a while staff tend to ignore the monitors, but the system is excellent as a means of managers/owners monitoring activity in the bookshop when they, themselves are not in the shop itself.

Timed lighting - local police forces on patrol often prefer to have a shop illuminated from the rear, however simply as a means of inspecting the interior of the shop during the night. It is considered to have deterrent qualities.

It will be very necessary to have worked out the likely financial basis for the bookshop. Banks will ask for it and backers will demand it - and it will need to stand up to careful examination, despite the need to make estimates of future performance on the slimmest of data.

Essential steps to be taken first are:-

Produce lists of costs: occupancy, staff, other running costs

Estimate investment in stock and decide on the rate at which it needs to be written down

Arrive at net margin less depreciation for offsetting the capital investment and decide on the criteria for doing this.

This should then be the basis for a financial model and enable the necessary documents for a business plan to be produced.

Most book store enterprises need significant capital investment. For not only will there be sizeable set up cost but working capital will be needed to invest in stock which may well turn over more slowly than a normal pay back period would allow. Ideally the stock investment ought to be more or less in balance with four times stock turn being matched by a three month credit period from suppliers, but in the initial period at least this is not likely to be achievable, especially if inflation rates are high.

If a site is taken as leasehold, then it is very possible that there will need to be building works before the building can be brought up to a standard necessary to house the operation. It is very likely for example, that a new staircase will be needed and that lifts (even if only for goods) will need to be installed. This element in the package can be very capital intensive and is impossible to estimate until a specific site is found.

Dependant on the state of the premises. Actual background surface preparation and painting is not expensive, unless the flooring needs to be rebuilt. Floor coverings can be acquired cheaply, yet to good effect.

Once the shop is laid out, the fixturing need not be expensive, especially if bought in a ready made form. Lighting and heating and/or air conditioning can be a significant cost.

Computers, printers, CD-ROM drives, Audio Visual equipment, communications equipment, tills, credit transaction machines and a variety of miscellaneous items. An allowance is needed for relevant software and for installation, including dedicated lines and buffers.

A heavy investment in merchandize is necessary. The costs involved can be, to some extent, deferred, subject to negotiations with publishers about extended terms for opening stock, and up to five months credit is possible.

The European Investment Bank and the European Bank for Reconstruction and Development should both be approachable. The EBRD is known to be prepared to back start-up businesses but the process of raising cash in this way is said to be lengthy. However it may well be part of the process of raising capital support to talk to the people at this bank.

There may well be charitable organizations whose objects would be fulfilled by supporting a bookselling venture. One such, the Soros Foundation has been active in Eastern Europe.

The Anglo American finance sector is particularly known for the concept of latter-day merchant banking or venture capital companies and a number of these operate on an international basis. An approach to one of these venture capital providers would need the very careful preparation of a business plan put together with the assistance of one of the larger international accounting companies who have experience in presenting potential venture's business plans.

European clearing or merchant banks may be interested in the idea of a long term investment, provided they can be persuaded that the prospect of a satisfactory return on the investment is a good one and realistic. Otherwise banks are good for short term funding (the 'overdraft') to cover troughs in the cash flow.

Some form of co-operative venture is possible, although care would need to be taken to ensure that someone was seen to be clearly in charge Otherwise staff investment in the bookshop is probably best arrived at by profit sharing schemes.

Capital investment of any kind will cost money and some forms (e.g. a bank) the costs will be inexorable, and not capable of being delayed. Venture capital is usually provided on the basis of a twice yearly dividend, which again is inexorable if the company is actually making a profit. allowance for both these items in any forecast profit and loss account.

All items which constitute the share holders investment will require writing down at regular intervals and the amount should appear in the profit and loss account. Normal practice varies but as a general rule the following rates of depreciation can be adopted:

Accountants vary in their treatment of the allocation of costs. Fixed costs are regarded as inevitable if the business is to be carried forward, whereas other costs vary depending on the rate at which the business proceeds.

Rent, local taxes and any service charges attached to the property and must be paid regardless of the level of trade. Occupation costs can amount to as much as 15% of the turnover and since prompt payment is nearly always demanded, this element of the costs can have a significant effect on planning cash flow forecasts. Note should be taken of the effect the shape and configuration of the store has on occupation costs. (The Section on starting up above refers).

Costs are imponderable for the necessary back-up to the retail staff in the organization, until the size and scope of the book store is established. Allowance is needed for office staff and equipment to provide accounting and other services and staff for the goods in function.

The core staff are a fixed cost because they are essential for the running of the shop and are therefore a predictable and steady overhead (but see also below under variable costs), Staff costs can be affected by the configuration of the space of the store, e.g. multi-floor layouts as opposed to a single floor tend towards higher staff costs. It should be reckoned that staff costs are likely to be in the region of 8 - 10% of turnover.

Energy costs together with water supplies become largely predictable once the store is up and running. Obviously the must be borne and therefore represent an established fixed cost. Care must be taken to examine these costs closely, since significant savings can be made by adopting the correct tariffs from the service providers.

Whilst this item can be variable depending on the commissioning of external advisors work, the fixed element is for the fee to be paid to auditors.

Stock is variable only in the sense that it will vary with sales achievements. A basic level of stock is obviously essential and arguments about this will continue as long as there are booksellers to interpret the rules variously.

Staff - can appear as a variable item, since the management will need to increase or decrease staffing levels, depending on the level of turnover.

Selling costs - marketing and promotional costs e.g. advertising, printing etc., are variable in the sense that management has the ability to plan when such expenditure be made and to manipulate commitment and payment to suit the state of the cash flow.

Running costs: cleaning, maintenance - similarly running costs can be made variable in that in times of stringency they can be cut to the minimum.

Taxation - allowance must be made for this item given that it is intended that the bookshop will make a profit.

ACCOUNTING FOR BOOKSELLERS

A proper assessment of all cost centres will enable the forecasts for the following documents to be prepared, firstly for the business plan to lunch the enterprise, and thereafter to provide management with the necessary tools to control the business and to provide satisfactory documents for the share holders.

Will be a product of the nominal ledger, with the proviso that some elements will have to be estimated until the statutory audit. Sales are given as are the costs, both fixed and variable, as outlined above. Capital costs appear as a depreciation figure and the purchase of stock in trade stock does not appear at all unless it is being written down. Costs are set against sales, with an estimated gross margin, being calculated on the basis of an average discount at which stock is purchased being deducted from sales for the period, less an allowance for shrinkage.

This document is a product of the profit and loss account and ‘takes a picture’ of the state of the business at any point at which it is cast. It is in this document the investment in the company is set against the ways in which the funds have been used.

A document that provides detail to support the balance sheet. Whilst not necessarily required for statutory purposes, it allows management to see how the capital resources they have been charged with are being properly employed.

A crucial management document, which should be kept constantly up-to-date. It shows how the income from sales is set against necessary out goings, at their point of payment. It has a direct bearing on predicting whether bills can be paid on time and what the effect on borrowing facilities is going to be.

Sales that provide the income are predictable with experience, and that month by month sales forecasts of mature businesses can be estimated with a margin of error of only one or two per cent. This is not the case for a start-up business in the foreseeable future and so the management of funds (cash) will take on a crucial nature.

Failure to pay suppliers within the prescribed credit period will seriously dent their confidence in the enterprise and may well adversely affect supplies, thus damaging the business. account of this situation must be taken into account when raising funds for the business.

An Operations Manual Outline

Year one might look like this:-

INCOME

Sales 100

- payments to suppliers based on average of discounts received 65

- estimated shrinkage (stock losses from theft or miscalculations) 1.75

+ Other income, if any _____

Net income 33.25

EXPENDITURE

Occupancy: rent, rates, service charges from landlord etc. 8

Services: electricity, gas if any, water. 2

Salaries of staff (gross, to include NI contributions) 11

+ overtime for seasonal business 0.5

+ employment of ‘casual’ staff 0.5

Equipment servicing and maintenance (likely to be free in first year) -

Promotional material and advertising 2

Insurance 1

Professional fees (auditors, accountants etc) 1.5

Bank charges 1.5

Bank interest 3.0

Total Expenditure 31.0

Net income before management/owners earnings 2.25

* However, allowance needs to be made for:-

- Stock write downs, say 5% of stock, i.e opening stock plus purchases 3.25

- Depreciation of assets (difficult to apply in first year) 3.0

This is clearly not yet a business, so the second year needs to be looked at differently:-

INCOME

Sales 100

- payments to suppliers (discounts will improve on basis of performance) 62.5

- estimated shrinkage (experience should allow thgis to be limited) 1.5

+ Other income, if any 2

Net income 38

EXPENDITURE

Occupancy: rent, rates, service charges from landlord etc. 8

Services: electricity, gas if any, water. 2

Salaries of staff - may be subject to saving in light of experience 10

+ overtime for seasonal business 0.5

+ employment of ‘casual’ staff 1.0

Equipment servicing and maintenance 1.5

Promotional material and advertising 1.75

Insurance 1

Professional fees (auditors, accountants etc) 1.5

Bank charges 1.5

Bank interest 3.0

Total Expenditure 33.75

Net income before management/owners earnings 4.25 Stock write downs 3.25

Depreciation of assets 3.0

An Outline Business plan for the OPENING of a BOOKSHOP

Executive Summary

10.Marketing Strategies

11.Plans for development of the business

12.Operations

13. Problems to be faced

14.FINANCE

ASFODEL Le Metier de libraire Editions du Cercle de la Librarie 1995 339 pp. ISBN 2-7654-0605-7

Baverstock, Alison Are Books Different Kogan Page 1993

Gibson, Malcolm The Complete Guide to Starting and Running A Bookshop, Booksellers Association of Great Britain and Ireland 1999 5 217pp. ISBN 0 907972 53

Hinze, Franz Grundung und Fuhrung einer Buchhandlung Sortimenter-Auschuss, Borsenverein 7th edition 1996 471 pp. ISBN 3-87318-668-3

Hinze, Franz Kauf und Verkauf einer Sortiments-buchhnadlung Sortimenter-Auschuss, Borsenverein 2nd edition 1995 151 pp. ISBN 3-87318-667-5

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Zell, Hans (ed) African Books in Print Hans Zell Publishers/Bowker/Saur

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Books in English British Library, London

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British National Bibliography British Library

Canadian books in Print University of Toronto Press, Totonto

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Indian Books in Print Indian Bibliographic Bureau

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Libros Espanolas en Venta en Hispanoamerica y Espana Agencia Espanola, Madrid

Les Livres disponible La Cercle du Librarie, Paris

New Zealand Books in Print D W Thorpe, Melbourne

PubEasy - on-line database of enhanced bibliographic material administered by Whitakers

Verzeichnis lieferbarer Bucher K G Saur, München

Whitakers Books in Print & Whitakers Bookbank Whitaker Bibliographic Services, London

CONSUMER AND RETAIL LAW FOR THE BOOKSHOP

General rights and duties/ the contract of sale/ making the sale/ pricing of goods/ exchanges and refunds/ advertising & sales promotion/ theft/ protection of privacy/ miscellaneous legislation/ fair trading/ laws relating to retailing passed by statutory bodies