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Business plan for the creation of a magazine editorial office. How to open your own glossy magazine: pitfalls Financial plan analysis electronic media online magazine

Magazine business plan: example
- Step 5. First release.
- Step 6. Development of the magazine.
Taxation
Business Journal Example
Is it easy to create your own journal?

Despite the rise in popularity e-books and magazines, the lion's share of the market still belongs to print media. People still read magazines at home, in transport, in line.

We will analyze how to write a business plan for a magazine and whether it is possible to make money in the publishing business.

Magazine business plan: example

The business plan of the journal should include a detailed calculation of the main costs and expected income of your publication, as well as an analysis of the market and competitors.

Key project parameters that are needed to draw up a competent business plan:

editorial staff - number of people;
wage fund - the average amount per person per month;
the cost of printing a circulation - for each issue;
operating costs per month - except for labor costs and printing;
tax deductions per month (depending on the choice of taxation system).

Based on them, they calculate:

average projected revenue per month;
average projected revenue per year;
expected net income for the year;
expected average income owner/investor (aftertax payments, minus initial investments);
share of net profit;
break even;
financial indicators - IRR, PI, NPV.

You can get such a profit in the ideal case - if all 12 editions of the magazine are completely sold. The business plan should also provide for a break-even point at which the journal will recoup the cost of its publication.

Step by step instructions on how to make your own journal

Step 1. Definition of the target audience, topic and format, market analysis.

Magazines are industry, information-journalistic, advertising and entertainment. You need to immediately decide on the direction and niche. You should not try to cover several areas at once, but you should not take too narrow a topic either: with a high degree of probability, you will not be able to withstand competition from popular niche publications.

Let's say your magazine is about business. In this case, it will be better if the topics of the articles help both an established businessman and a beginner who is just planning his business. This will allow you to expand your reader base, thereby attracting more people and increase the circulation of the magazine, as well as to interest potential advertisers. Special attention It is also worth paying attention to design development.

Immediately identify your audience for reading - their gender, age, profession, hobbies and interests. Now the most popular topics for magazines are beauty, sports, medicine, business. But no matter what topic you choose, it is important to have a "zest" - reprinting other people's texts, you will not achieve popularity.

You need to immediately determine how many times a month your magazine will be published. Also at this stage, you also need to study your competitors. This will allow you to identify their strengths and weak sides and find your competitive advantages. To stand out from other magazines and attract readers, you must do what others do not.

Already at this stage, you need to start drawing up a business plan for your publication.

Step 2. Working out the parameters of the log

At this stage, you need to consider the parameters of the log, for example:

Think about what sections your magazine will consist of and where you will get content for it weekly or monthly. It depends on what staff of journalists you need.

Also already on preparatory stage distribution channels need to be considered: it can be targeted distribution, distribution by subscription, retail or something else. Some expert journals can be delivered directly to company executives or to the enterprise. The choice of sales channels for your publication depends entirely on its specifics.

Also think about where and how you will print your magazine: do you need your own printing house, or will you give it to someone else's printing house for printing. As a rule, at the first stage, the second option is chosen - it is cheaper in terms of starting costs. Having your own printer will make your project more expensive, but each issue will likely be cheaper, especially if your edition is in a large print run.

Step 3. Drawing up an accurate business plan, finding funding.

Finding funding for any new project is often the main problem for a businessman.

If you have your own money and are willing to invest in a magazine, you can skip this step. But more often than not, you have to look for money to start up. Here are the main possible sources:

Partner. The partner puts money into the business and bears all the risks with you, but is also entitled to a share of the profits.
Investor. Many magazines have investors who give promotional money in exchange for publications they want—or in the hope of getting their investment back when the magazine becomes profitable.
Loan From a business point of view, it is better to borrow money from friends and without interest. Worse - take a loan from a bank. For the first business and without a firm belief that investments will be recouped, it is better to do without a loan.

Since a magazine is a media, and many companies are interested in a platform for advertising, it is most reasonable to look for investors.

At this stage, you should have a detailed business plan ready.

Step 4. Recruitment and search for premises.

Recruitment is an important part of launching a magazine. Your employees must be professionals in their field.

You will need at least Chief Editor and several journalists. Accountant, employee personnel service, proofreader, layout designer and cleaner can be outsourced. If you're planning a major magazine, you'll also need a lawyer, editor-in-chief (managing editor), department editors, a photographer, and a lot of journalists/reporters.

Also at this stage, it is also worth looking for a room for your magazine.

Step 5. First release.

You need to think about everything: themes, design, photos. The first release is very important. It is advisable to immediately launch advertising so that as many people as possible learn about your magazine.

Try to think about topics in advance and always have a stock of topics that you can quickly release to print.

Step 6. Development of the magazine.

Creating your own magazine is not everything. Your magazine should gain popularity every month. There are several tricks to promote the magazine.

1. Sponsor information about the event, become an information partner.

You provide information about any event (exhibition, press conference, opening of something) on the pages of your website or groups in social networks, as well as on the pages of your magazine.

For these services you can:

Become an official reviewer of this event (and this is unique and fresh content)
Get the opportunity to attract new customers and subscribers

Some publishers pre-package these “special services” depending on the level of the event and the company that will host it.

2. Issue additional literature, promotional materials, souvenirs.

This method is also good to allow you to expand your circle of readers. Materials can be issued as an addition to your magazine for each circulation or separately once a quarter.

It also works well to distribute souvenirs (notebooks, pens, magnets, calendars, mugs, T-shirts with the logo of your magazine) at various events.

3. Promote on social networks

Perhaps one of better ways further promotion. Create forums where topics of interest to you will be discussed. Set up targeted advertising for your circle of readers. And advertising on popular pages or bloggers will help expand your audience.

But the most important condition for successful promotion is the regular publication of high-quality and useful content. If you cannot maintain a staff of journalists, then you can find it remotely - for example, on the copywriting market.

Starting capital and earnings on the magazine

To create your own journal, you will need start-up capital, the size of which depends on many factors. Usually the amount ranges from 500,000 to 3-5 million rubles.

What will be included in this amount:

Office rent
Business Registration Costs
Printing services (minimum 3 months)
Compensation of employees (minimum 3 months)
taxes
Marketing costs
other expenses

It is extremely rare for a magazine to become self-sufficient in less than 6 months, so you need to have start-up capital that will cover your expenses for the first time.

But earnings from one magazine vary greatly depending on its circulation, specifics, target audience and marketing campaign. You need to be prepared for the fact that in the first months the magazine will turn out to be unprofitable and only then will it go into plus.

Taxation

You can register an individual entrepreneur or LLC, but for a novice entrepreneur IP is more suitable. In this case, you can switch to a simplified taxation system and pay 15% of the difference between income and expenses, or 6% of total revenue.

Business Journal Example

The best business magazines in Russia are:

Forbes
Fortune Harvard Business
Business
review

Each of them has its own characteristics and zest. If you want to create your own successful magazine, you need to carefully analyze your competitors, study their issues over the past few months. This will help you understand what attracts readers and how to make your magazine popular in this niche.

How to make your magazine profitable

The success of a magazine is determined by:

The right niche. If you copy the Forbes format, then it will be extremely difficult to compete with this publication. But you can write about business and money if you come up with your own original format for your publication, which will be in demand among the audience.
A smart business plan.
Quality content. Texts should be interesting and written in a living language.
Smart marketing. It is important to understand who your target audience is and how best to tell them about the new publication.

The profit of the magazine depends not only on the number of copies sold, but also on advertising revenue.

Is it easy to create your own journal?

Creating and promoting a magazine is not the easiest business. It will require investments and a lot of effort at the start. As in almost any other business, at first you will have to devote a lot of time to the magazine without making a significant profit. But if successful, the magazine will pay off and bring you substantial income.

Most of all, this type of business will suit experienced editors / publishers who understand it well from the inside. You can also try if you are well versed in the topic of the magazine and have a commercial streak.

Study the needs of your target audience, analyze competitors, think over a marketing strategy and distribution channels, make a competent business plan - and you will succeed.

List of tables

Table 2. Project performance indicators.

Table 3 Shares of publications of different periodicity in the range of different sales formats of printed products (by number of titles)

Table 4. Total annual circulation of the publication of magazines and other periodicals(received during the reporting period) for the intended purpose, thousand copies.

Table 5. Top -20 monthly magazines by the audience of one issue according to the AIR indicator, Russia.

Table 6 Top 20 monthly magazines by audience of one issue according to AIR indicator, Moscow

Table 9. Main parameters of the publication.

Table 10. Monthly sales plan.

Table 11. Sales plan by years.

Table 12. Parameters of current costs.

Table 13. Monthly current cost plan.

Table 14. Plan of current expenses by years.

Table 15. Personnel of the enterprise and payroll.

Table 16. Dynamics of the wage fund.

Table 17. Planned investment costs (100%).

Table 18 Calendar plan financing and implementation of the project.

Table 20. Qualitative risks for the project.

Table 21. Calculation of the break-even point.

Table 22. Sensitivity of NPV to changes key parameters project.

Table 23. Movement plan Money per month.

Table 24. Cash flow plan by years.

Table 25. Profit and loss plan.

Table 26. Profit and loss plan by years.

Table 27. Taxation.

Table 28. Plan for obtaining and repaying a loan.

Table 29. Investment performance indicators.

Table 30. Calculation of the NPV of the project.

Table 31. Financial analysis of activities (3rd year).

List of graphs

Graph 1. Plan for the release of the publication (unit / month).

Chart 2. Plan for the receipt of revenue (rubles).

Chart 3. Dynamics of current costs.

Chart 4. Dynamics of net profit

Chart 5. Payments to the investor on an accrual basis (rubles).

Graph 6. Dynamics of inflation and GDP in Russia, %, 2003-2016.

Graph 7. Plan for the release of the publication (unit / month).

Chart 8. Plan for the receipt of revenue (rubles).

Chart 9. Dynamics of current costs (rubles).

Chart 10. Calculation of the break-even point.

Graph 11. Sensitivity of NPV to changes in key project parameters.

Chart 12. Revenue, costs, profit.

Chart 13. Dynamics of net profit.

Graph 14. Financial results.

Chart 15. Receipt and repayment of investments.

Chart 16. Debt service.

Chart 17. Sensitivity of NPV to the discount rate.

Chart 18. NPV of the project and undiscounted cash flow.

Chart 19. Payments to the investor on an accrual basis.

List of diagrams

Diagram 1. The structure of the print media in Russia.

Diagram 2. Number of registered print media by type of publication, 2014-2015.

Diagram 3. Main financial parameters of the Russian press market, 2014

Diagram 4. Main financial parameters of the Russian press market, 2015

Diagram 5. Volume dynamics Russian market distribution of print media, billion rubles

Diagram 6. Dynamics of the volume of the Moscow market for the distribution of periodicals, billion rubles.

Diagram 7. Structure of the print media distribution market (by circulation), 2015, %.

Diagram 8. Structure of the Moscow print media distribution market by number of objects), 2015, %.

Diagram 9. Structure of the print media distribution market (circulation, copies), 2015

Diagram 11. Structure of current costs.

Diagram 12. Structure of initial investments.

Diagram 13. Structure of tax deductions (%).

Diagram 14. Cost structure in the 3rd year of project implementation (%).

List of drawings

Total 85 pages, 31 table, 19 charts, 12 diagrams and 2 drawing.

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1.Resume

This section briefly summarizes the main ideas of the plan. Your resume must:

- specify the mission of the publication;
- list the purpose of creating the journal;
- justify the relevance of the chosen topic;
- designate target audience;
— describe the attractiveness of the new edition;
— emphasize the uniqueness of the journal;
- indicate the initial circulation;
- give the main financial results;
- justify investment attractiveness;

2. Characteristics of the publication

In the characteristics section, you must specify:

- the format and volume of the journal;
- quality of paper and printing;
- type of packaging;
- circulation;
- periodicity;
- method of distribution;
- main headings.

3. Market analysis

It is necessary to evaluate the market in terms of its saturation with publications of similar subjects. You also need to indicate the share of your products, the availability of solvent demand for this magazine and the ability to compete in the print media market.

An analysis of the sales market and competition should justify the possibility and desire of the market to acquire this journal.

4. Marketing strategy

This section of the business plan is closely related to the assessment of the market and competition. The formulation of a marketing strategy involves the study and analysis of data on how to organize the sale of a magazine, their profitability, ways to ensure sales growth and the reputation of the magazine among consumers, and advertising costs.

5. Production plan

In this section, a feasibility study (feasibility study) is carried out for the publication of a new journal in the required circulation within a specific time frame. You must convince investors and potential partners of the possibility of achieving your goal. Also the business plan of the advertising magazine should attract advertisers.

The production plan should provide information on the following items:

- the publishing house that will print the magazine;
– production capacities required for typing, layout, printing and the possibility of their increase;
— source and conditions for the purchase of materials;
- the reputation of suppliers, the experience of working with them;
- subcontracting relationships;
— the availability of the necessary machines and mechanisms, the place and the possibility of their acquisition.

Good to know!

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6. Organizational plan

The organizational plan must contain organizational structure publishing houses, ways of interaction individual divisions, ways of their coordination and control.

It is also necessary to show connections with partners and founders.

When compiling an example staffing it is desirable to reflect the duties and profile of specialists, indicate the qualifications and work experience of the publisher's correspondents.

7. Financial analysis

It is necessary to draw up a plan of income and expenses, receipts and payments, a balance plan for the year, conduct the financial analysis cash flow, sustainability of the publishing house, sources and use of funds, determine the payback period.

For a deeper understanding of the above theory, you can download a sample magazine business plan from our website. After studying it, you can easily draw up a business plan for your own magazine.

Watch the video: "Business Secrets: Dmitry Potapenko"

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Reviews (4)

Magazine Business Plan Reviews (4)

1 2 3 4 5

Magazine business plan

Alex

Alex, thanks for the feedback. We urge you not to stop studying the business plan. Go ahead, develop your project, look for investors. And your magazine will come out in that popularity. We wish you success.

Magazine business plan

Andrew

Andrei, we agree with you, but a business plan is also used by experienced businessmen, because without careful planning, you can go to the desired result for a long time. Now do not stop there and implement your business idea. We wish you success.

Magazine business plan

Jeanne

Zhanna, business plan, this is one of the important primary documents, do not neglect them. Excessive self-confidence has led many aspiring businessmen to failure. When instructions for action are at hand, it is really easier to work and many issues are resolved much faster. We hope that everything will work out for you. Good luck to you.

The main thing about the business plan of the magazine

Thousands of glossy publications flooded the counters of kiosks and shops, and what most amazes the sophisticated reader is the abundance of advertising on the pages of magazines. Willy-nilly, it seems that the owners large enterprises and companies simply have nowhere to place their advertisements. This is where the seditious thought creeps in: why not create your own profitable business- a mega-popular magazine, from the pages of which the faces of celebrities will look at the reader, and inviting advertising collages will unobtrusively remind you of the need to change an old car or buy another necklace with diamonds.

But fantasies are fantasies, and opening an advertising magazine or an ordinary glossy print publication may well be crowned with success. Of course, only if you are well versed in this particular type of business. To get started you will need original idea which, oddly enough, should not be rushed to be implemented. First of all, you need to adequately assess your financial opportunities. There is nothing more offensive than to get involved in the work, and in the middle of the way to understand that there will definitely not be enough money to implement the cherished idea.

Exit to circulation

In a business like publishing your own magazine, it is important to clearly calculate each step, and armed with a calculator for greater accuracy. Even a limited edition edition will require an impressive amount from you. Try to make a sample estimate for the preparation of the magazine, and you will understand that several tens of thousands of rubles are not enough here.

So printing one issue of the magazine, based on a circulation of 5 thousand copies, will cost about 150 thousand rubles. But in order to print a magazine, it must first be filled with useful content, that is, pay for the work of journalists, editors, proofreaders, typesetters, and many other employees. Wages will result in a rather impressive amount - 200-250 thousand rubles per month. As a result, in order to open, register and print a magazine, a businessman needs to have initial capital, which is at least half a million rubles.

When compiling a business project for a magazine, it is necessary to proceed from these figures, which will allow you to determine the approximate cost of advertising placed in your print publication. But the business of issuing advertisements may not bring the expected results, because there is no guarantee that the owners of companies and enterprises will rush to you with offers to pay for advertising. Therefore, it makes sense to think about additional services, for example, to open a business such as an electronic version of a glossy magazine. The cost of advertising on the Internet may be lower, but this will attract the interest of new customers to your publication.

How successful your project will be, only time will tell. But a professional magazine business plan will allow you to shorten the tedious waiting period, with which it will be much easier for you to develop a marketing strategy, come up with an original concept for the magazine and calculate your real opportunities.