In order for the business idea of publishing a magazine to be successful and profitable, it is essential to conduct preliminary market research. This is due to the high competition among print media, which are literally fighting for the right to work with advertisers.
Despite the fact that the number of printed publications is constantly decreasing due to rising costs and the transition of the population to the Internet space, advertising in them remains a profitable and attractive type of business.
When conducting marketing research, first of all, you need to try to identify the target audience of the magazine, that is, those for whom articles will be written and advertisements will be placed.
The most popular type of advertising and information publications are entertainment magazines, but you need to be sure that the magazine team will be able to quickly and efficiently prepare information for such a publication. In addition, advertisers are interested in the theme of the magazine being somehow related to the local region.
To create your own magazine at the first stage, it is not necessary to have your own printing house, and even an office. It is quite enough to have mobile, nimble and persistent managers in the staff who will be able to offer advertising to customers and conclude contracts. Of course, at the first stage it is necessary to have at least a layout of the first issue of the magazine.
The implementation of the business idea of the journal is characterized by the fact that the publisher needs to have funds to prepare the publication and distribute at least the first 2-3 issues of the journal. This is due to the fact that advertising revenues usually arrive late at first, and, in addition, you have to provide advertisers with substantial discounts.
Therefore, when conducting marketing research, it is necessary to take into account in the amount of initial investments the costs of preparing information, photographs, printing and delivery of the magazine, distribution and presentation of the magazine. The initial costs also need to include the cost of registering a printed publication, since such activities require a license.
By the way, when registering, it is better to indicate the type of advertising magazine, otherwise it will be possible to place advertisements in it in the amount of no more than 40% of the total volume.
In the case of creating your own office already at the first stage, it is also necessary to take into account the initial costs for the repair and equipment of the premises, the purchase of furniture, computer, office equipment and communication equipment.
Initial costs also largely depend on the format and volume of the journal. It is recommended to start creating a magazine no larger than 60 pages. After all, the printing and delivery costs of the magazine will directly depend on its volume. Depending on where the magazine is printed and shipping costs, the initial cost of creating a small magazine can be estimated at around $20,000-30,000.
However, it should be taken into account that the magazine’s profit will not appear immediately, therefore, in order to compensate for the current costs during the first two or three months, you also need to have a cash reserve.
Current costs include rental of premises and equipment, utility and maintenance costs, staff salaries, shipping and distribution costs, and other expenses. Depending on the volume and frequency of the magazine, running costs can range from $15,000 to $30,000 per month.
Thus, two or three months of current expenses can be added to the initial costs.
Of course, income from the publication of the magazine will begin to flow before 3 months have passed, however, the risks that the publisher bears when releasing the first issues are quite large.
The magazine may not be liked by readers or advertisers. And in this case, the initial costs will have to be written off as losses. Therefore, for the publication of the journal, as a rule, third-party investors are attracted, who are interested in the emergence of a regional printed edition. It can be big businessmen, political parties, public organizations.
To receive financial support in the form of investments, it is necessary to prepare a detailed business plan and calculations confirming the future profitability and profitability of the journal.
You can do it yourself, or order the necessary calculations and a ready-made business plan on our website.