A person should always receive information about the world around him. Internet, television, radio, newspapers and magazines. The business idea of opening a magazine is good, in the future it can bring you a good income. Develop your business magazine plan.
When compiling this document, you need to consider many variables that affect your business. The business plan of the magazine will play the role of a step-by-step guide.
The magazine’s business plan is critical to raising capital. Whether it is investors or a bank loan, you need a business plan for the enterprise. Only after viewing it, you can get financial assistance from the outside. I offer you a business magazine plan template.
General section
This part of the business plan of the magazine will describe your business in general. What do you plan to do, a brief mechanism for implementing the plan. The main sources of income and expenses are described. Write this section last when the main figures of the financial section are ready.
Company descriptions
This is a business magazine plan that will deal with advertising. The specific topic of the journal will not be indicated. You need to determine the topic you want to work with. Pay attention to the number of target audience, the ease of processing information, the number of its flows.
I propose to open a magazine with 60 - 100 A4 printed pages. This is a magazine with 30-50 sheets, of which 50% is advertising, and the rest is content on the selected topic. When registering, it is better to choose the type of advertising magazine, then you can place more advertising. If you choose a different form, then by law advertising can occupy only 40% of the total information.
Market analysis
The purpose of this part of the business plan of the magazine is to determine the target audience and the number of competitors on this topic. You also need to calculate the capabilities of the circulation of your competitors and sales locations.
Sales section
At this point in the development of a business plan, you already know its subject. Engage in sales planning, advertising. The first two runs (pilot ones) will be free, this is done in order to attract the attention of readers and get a first positive impression. They will be wary of buying a new product, because there are many alternatives. Moreover, alternatives have long been on the market and they are known in person. You need to show your market presence in a similar way.
An advertising company should be catchy, memorable. If possible, you can agree with local television channels, radio stations on free advertising, so to speak barter.
Production plan
Now let's cross to the most difficult section. You need to plan how many workers you need, what equipment to buy for them.
Finding a room will be a priority. We need to find an office in which there will be several large rooms where employees can accommodate. You need to have several separate rooms for different departments of the magazine. Due to the nature of each section, an appropriate environment is required. You will need a room of up to 100 square meters.
Recruiting will play the most important role. It doesn’t matter what quality the paper will be if it is written on a boring and not interesting text. You will need a chief editor who will be responsible for the information component. Two full-time correspondents, as well as an unlimited number of freelance. A literary editor who will be responsible for all the text that is printed. The corrector may be full-time or incoming only to verify the final material. Two designers who will deal with the design of all articles in the issue. A driver for transporting the necessary documents and other things.The head of the sales department, who will manage all current contracts, for often these are experienced people who already have their own circle of friends and it will not be very difficult for them to promote the magazine in the media. Such a person can be hired, lured, or raised in his own edition, for this you need either money or time. Two pop sales managers who will lead customers, advertisers, their main income is the percentage of transactions.
Purchasing office equipment is not cheap. Every employee needs to buy a computer. Designers need fairly powerful machines to work with design and images. Various office equipment and equipment will also be required. Also, the office needs to be equipped for the convenience of work. Do not save on this section. You can buy used equipment, as young magazines do, but this does not help to stay in the market. They do not survive in the market. Better not to spare money in the future, this will save your business.
Now let's talk about the main source of profit for the magazine. Advertising will be the main source. You will need to spend a lot of effort on convincing advertisers to sign a contract with you. But with the distribution of the magazine on the market, they will eventually trust you.
Very often they write that this business will begin to pay off after the fourth month of operation. It’s not true, it’s quite difficult to get big sales to a young magazine. If by the end of the first year go to zero then this is good. The first year is the most difficult to work, while the team is rubbing, working together will take a lot of money. Every month there will be expenses, and the profit will be scanty. You need to have a decent capital to advance in this business, keep this in mind when drawing up a business plan for the magazine.
Financial section
The costs of the first month of work:
magazine registration - $ 1 thousand
purchase of equipment, furniture - $ 12 thousand
rent - $ 2 thousand
salary fund - $ 5 thousand
printing and delivery - $ 5 thousand
The first month will cost $ 25 thousand.
Further monthly expenses will be:
rent - $ 2 thousand
payroll - $ 5 thousand
printing and delivery - $ 5 thousand
other expenses - $ 2 thousand
Total: $ 14 thousand.
Approximately $ 150 thousand will be required to bring the magazine to a profitable path.
Now we write the profit.
You will have 60 ad pages. Advertising spots sell for $ 500 - $ 700 thousand. 60x600 = $ 36 thousand. About 20% of the amount will be spent on taxes and interest payments to employees is $ 7 thousand, there remains $ 29 thousand. The editors will take $ 14 thousand, in the end, $ 15 thousand of net profit remains.
