VIVE Magazine Financial Plan: 1 Year Staff: · 3 editors: $35,000 · 1 publisher: $40,000 · 1 designer: $35,000 · 1 creative director: $35,000 · 1 sales executive: $30,000 + 10% commission per ad sold · 1 web developer: $35,000 · Total staff pay: $280,000 Medical insurance: $2,000 per person (per year) = $16,000 total Freelancers (writers and photographers): $100,000 Office related expenses: $28,100 · Rental space: $18,000 per year · Office furniture for 8 employees: $5,000 · Budget for chairs and desks: $300 per person/$2,400 total · Office postage shipping services: $1,200 · Additional office facilities and maintenance: $1,500 Production costs: $17,200 · Webpage hosting, server, support: $300 per month/$3,600 total · Computers: $1,000 per person/$8,000 total · Software fees: $4,800 for Adobe, $100 per person Microsoft Word/$5,600 total Magazine printing: 250,000 issues per quarter/1 million issues per year ($500,000 per year on printing the magazine) Fulfillment costs per issue: • Print $20,000 • Mail $33,000 Total fulfillment for 4 issues: $212,000 Other costs: $52,300 · Phone services for 8 employees: $9,600 per year ($100 per month, 8 employees, 12 months) · Accounting services: $7,200 per year ($600 per month, 12 months) · Legal services: $6,000 per year ($500 per month) · Payroll tax: $17,500 per year (must pay 6.25 percent payroll tax per salary) · Travel budget: $12,000 per year ($1,000 per month) Marketing efforts: · Girls World Expo: $2,500 per expo · Direct Mail Cost: $1,500,000
Wholesaler/Distribution costs: $125,000 total TOTAL EXPENSES: $2,833,100 Ad Revenue 25/75 ad/edit ratio Total per year: $2,457,632 • This includes second ($30,000), third ($25,203), and fourth ($31,205) cover along with 22 full page ads at $24,000. 86408 o Total per issue: $614,408 Web ad revenue: (80% of goal) $28,800 TOTAL AD REVENUE : $2,457,632 - $245,763 (10% commission)= $2,211,869 Circulation Revenue: 100,000 subs at $16 each: $1,600,000 50,000 at $4.99 each: $249,500 TOTAL CIRCULATION REVENUE: $1,049,500 TOTAL REVENUE: $3,261,369 Profit for year 1: $428,269
Once we have established our readers and continue to discover new ones along with advertisers, profits will increase in years two and three.