Magazine Publisher Business Plan
The Group Publishing, Inc. (Group Publishing) is the publisher of “Artists In Business” magazine. The magazine, which has already printed an initial issue in July/August 1996 is directed at artists at all levels of business throughout the United States. The management of Group Publishing is targeting a total combined circulation of “Artists In Business” of 206,000 in year one, increasing to 310,000 by the end of year three. The magazine will be published bi-monthly with increased press runs throughout the first three years. Sample distribution, organizational sales, and direct mail to targeted lists of artists will be utilized to build subscriptions.
In addition, Group Publishing will market books via direct marketing and through established artist distribution channels. The direct marketing of Group Publishing books will be implemented through its magazine readership base.
Publishing is a high profit and high margin business. The key to success is successful marketing. The Group has a highly focused multi-dimensional sales and marketing plan to build its total circulation base quickly. The same channels and methods were utilized to establish a circulation of 500,000 in the first year for the Visionary Artist’s periodical.
Successful execution of The Group’s plan will produce sales revenues of $3.1 million in year one, $4.8 million in year two, and $6.4 million in year three. Net profit will increase steadily over the next three years.
The highlights of the business plan are illustrated in the following chart. Sales, margins, and net profit increase each year. The lowest margins occur in year one, reflecting the marketing costs of building the circulation base.
The initial objectives of The Group are as follows:
- To raise seed capital of $150,000 to ensure publication by month two and to establish a cash reserve to market subscriptions.
- To have 90,000 subscribers by the end of year one through direct sampling and marketing.
- To have an additional 50,000 subscribers by the end of year one through organizational sales.
- To have 10,000 more two-year subscriptions sold.
- To publish two 36 page issues initially with press runs of 50,000 promotional copies each.
- To go to 48 pages by issue number three and increase press runs to 75,000 promotional copies.
- Increase to 100,000 promotional copies in issues five and six.
- Increase average ad page cost from $1,819 to $2,618 by the end of the first year.
- To sell an average of 17.5 ad pages per issue throughout year one.
“Artists In Business” magazine is for the artist who is a worker at any level. The magazine has a commitment to be a platform to profile artists who are representing artistic vision in the marketplace and who can both encourage and provide role models to other men and women. Group Publishing, through its magazine, books, and editorial content, will be a vessel to inform artists about artistic principles in everyday business and will encourage interaction among artists as business people. Our mission is to promote the concept of “community” in the workplace.
1.3 Keys to Success
The keys to success are:
- Attaining targeted circulation levels.
- Controlling costs while spending the maximum on subscription marketing in year one.
- Carefully monitoring response rates of all media executions.
- Follow-on marketing of two to four book titles in the first year.
- Attaining targeted advertising sales revenues.
- Having quality editorial content in each issue.
- Making all production and distribution dates in a timely fashion for each issue.
Group Publishing, Inc. began as a joint concept between two avocational artists, Red Brushwielder, an advertising executive, and Thallos Green, a former insurance executive and the owner of the “Artists In Business” name. Mr. Green will promote “Artists In Business” as a radio program for syndication (a separate business entity).
Mr. Green is licensing the “Artists In Business” name to The Group Publishing, Inc. for the sum of $1 (one dollar). Mr. Green will also receive one page of advertising at no charge in each and every issue of the magazine and one page of editorial in each issue (as the founder of the magazine). It is expected that the radio show produced by Mr. Green will be a powerful promotional vehicle for the magazine.
Group Publishing will have exclusive rights to “Artists In Business” for all print media, electronic media (Internet home page, CD-ROM, Interactive Publications, etc.), catalogue business, and possible seminars and workshops devoted to the artistic business person.
2.1 Start-up Summary
Equity investment in the company is now being made available to outside investors for the first time. The purpose of this investment is to raise the needed “seed” capital to launch the magazine. An initial Private Placement offering to raise from $150K to $375K is in progress. The minimum amount of the offering would be sufficient to publish the first new issue in 1997. Money raised in excess of the minimum will enable full-scale sampling and marketing of subscriptions. It is possible that no further investment may be needed. However, it cannot be assured that additional capital will not be required in the future or that sufficient capital will be available to continue publication.
2.2 Company Ownership
Red Brushwielder is the founder of The Group Publishing, Inc. a newly formed Southwest “C” corporation. He currently owns all its stock.
2.3 Company Locations and Facilities
The Group Publishing, Inc. has current offices at 1234 Main Street, Anytown, GA. 30000 The phone # is … and the fax # is …. The office is fully equipped and functional. It is not anticipated that expanded facilities will be needed for the first few years of the plan. All business, management and editorial functions will be performed there. All printing, mailing, warehousing, and fulfillment is outsourced.
The Group Publishing will publish “Artists In Business” magazine. The magazine is high gloss, 48 pages, contemporary in look and appeal. Quality art content is the constant goal. The magazine will be entertaining and newsworthy and thought-provoking. It will appeal to a broad artist readership. No magazine like it is available today.
The Group Publishing will also publish softcover and hardcover books. Certain titles will be published in softcover “trade” size. Others (called “booklets” in this plan) will be similar to “paperback” size. Contemporary Arts themes will prevail, particularly those that deal with the demands placed on both business and family life by today’s business climate.
Market Analysis Summary
The target market is broadly based and is defined as the artist business person at all levels in any organization.
Market segments are defined by organizational affiliation.
Media strategy and execution may vary by segment.