Newspaper business plan
1. A brief investment memorandum
The printed word in the form of books, magazines or newspapers more than once experienced the influence of competing technologies – whether it be a radio, TV or the Internet. And every time, filled with fashionable trends, humanity again returned to the reading rooms, bookstores or newsstands. There are two undeniable fundamental factors that make it possible to invest with confidence not only in the publication of a newspaper in a business format, but also in other similar printed materials. It: the crisis periods experienced by the world print media, expressed in almost a 25% fall in the market, above all advertising, quickly faded away. Already in 2017–2018 there has been a growth in the print media market of about 4% per year (in Russia, and even higher – 6.6%). This is due to such a trend that most of the progressive and reading public was filled with instant news, “expert opinions” and analytics, sometimes done in general by who and how, actually “on the knee”, including the global problem “fake news”. Those. print media are still trusted and have a certain image status. For example, a business man would prefer to have a pack of newspapers on his desk, ranging from the WSJ and ending with Baron’s weekly, than a smartphone with a “news feed”.
The second point is related to the fact that the print media turned in their favor those modern information technologies that were supposed to “bury” them. For example, many print media have become more interactive in nature (through their sites and accounts on social networks), when the pages of their newspapers or magazines print material that is ordered by the reading public. Many print media use formats of active participation in the media space – from providing their editorial sites for discussions and communication, and ending with the broadcast of the most important news stories through streaming information channels. Such use of modern technologies allows not only to increase the readership by an order of magnitude, or increase advertising revenue, but also to gain weight in the economic, business or public circles (community). This can sometimes cost much more than just profit from the sale of copies.
In addition to the above, it should be noted that, despite all the problems, the printing information industry is on the verge of a new rise in demand. The expectations of those who, like a hundred years ago, predicted that radio or TV will replace not only newspapers and books, but also theaters, operas and orchestras are in vain.
2. Description of the business, product or service
The main commodity of the weekly newspaper is the publication of a printed information publication in 16 sheet volumes (A3) in color (“full color”). The price of a retail room is in the range of 40 to 60 rubles. The main part (80%) of the total circulation of 6000-8000 copies is distributed on free sale through a network of independent distributors, supermarkets, railway. stations and cars, air transport, gas stations, car dealerships, service stations, state and municipal authorities. The remaining part of 20% is distributed on individual and corporate subscription, as well as through the delivery of rooms on request.
As an information material, the reader is offered sections of such a thematic focus, such as:
social life, political, social and economic events of the region, cities and settlements;
regional economy – information, analytics, interviews, expert estimates and forecasts;
markets – financial, real estate, banks, insurance, loans, mortgages
consumer market, medicine,
motor transport, airplanes and helicopters, boats and yachts;
rest, travel, historical facts from the life of the region. Tourist information – hostels, motels, resorts, hotels, restaurants, roads, campgrounds.
Information policy of the newspaper will be flexible. Practically on a daily basis, at a short-term briefing, the newspaper’s team makes decisions about which informational materials will be most demanded by the readership.
In addition to selling newspaper circulation, the following services are also supposed to be implemented:
Placement of commercial advertising (maximum 2-2.5 issue sheets)
Placement of information materials, laws and regulations of state and municipal authorities relevant to business. (max. volume – 1 lane per issue)
Private ads, both commercial and personal nature – employment, study, business, commercial real estate. The maximum volume is 0.5 bands.
The pricing policy for advertising on newspaper pages is flexible, but with a focus on the average price range of the market. The average rate of the price for advertising in the volume of 1 \ 1 (for the whole strip) is at least 12 thousand rubles for each issue. As an example and price benchmark, the rates of the Kommersant business publication are given.