Magazine Business Plan Sample by Wanda Halpert

Table of Contents Business Plan Highlights.................................................................................................................................. 2 Company Summary ......................................................................................................................................... 2 Vision ........................................................................................................................................................... 3 Mission ........................................................................................................................................................ 3 Keys to Success ........................................................................................................................................... 4 Product and Services Summary ...................................................................................................................... 4 Business Model ............................................................................................................................................... 5 Operation Model ............................................................................................................................................. 6 Market Analysis ............................................................................................................................................... 8 Texas â&#x20AC;&#x201C; Quick facts ...................................................................................................................................... 8 State of Magazines in US â&#x20AC;&#x201C; An Overview ................................................................................................. 11 Magazine Readership and Reach.......................................................................................................... 13 Competitor Analysis .................................................................................................................................. 21 Competitor Analysis .................................................................................................................................. 22 Strategic Positioning ..................................................................................................................................... 23 SWOT Analysis ........................................................................................................................................... 23 Strategy Implementation .............................................................................................................................. 24 Marketing Strategy ................................................................................................................................... 24 Pricing Model ................................................................................................................................................ 26 Revenue Model ............................................................................................................................................. 29 Milestone Plan .............................................................................................................................................. 30 Management Structure................................................................................................................................. 30 Financial Projections ..................................................................................................................................... 31

A Resource for Professional Women Changing the World A Print and Online Magazine with Articles for Women in Business

Business Plan Highlights Name of Company Industry Sector Geographic Location Differentiating Features Target Market Capital Requirement Use of Proceeds

GC Magazine Business management magazine for professional women Printing and publishing Houston, Texas, USA Business Management principles targeted to high achieving women, accessible in print or online Professional and career oriented women $ 1 million Initial set up, launch of first magazine and website Product development General and Admin costs Sales & Marketing expenses

Company Summary Glass Ceiling Magazine (GC) is a boutique specialized magazine dedicated to the professional woman. GC is a print and online magazine with articles for women succeeding in business. As a quarterly magazine, GC will act as a platform for ambitious women, looking to move up the career ladder and crack the limiting â&#x20AC;&#x153;glass ceilingâ&#x20AC;?. GC will provide business management resources with articles addressing business challenges, trends and research which enable women to sustain and build upon their professional success. It is intended to be a publishing home for academics, respected business consultants, and successful professionals in various industries. GC consists of a core group of experienced professionals with relevant business experience in their respective industries who believe that professional women are in need of a resource for research, best practices, and shared successes in business.

Some of the key features of the magazine will include: 

Articles on leadership, change management, operations, business trends, finance and other business issues  Articles on business management, stress management and business travel  Bios on women in business  Stories on inspirational leaders in various industry sectors Lead by Paula Schwartz as CEO and xxx as editor-in-chief, GC will:  

Allow high energy, high powered professional women access to relevant, succinct business trends, practices and research; Move away from the clichéd “dumbing down” so prevalent in fashion and beauty magazines and feature articles that respect women as professionals

While the magazine’s initial launch, Phase I, will be in Houston, Texas, the founder’s local market, Phase II will involve an expansion across the US, with Phase III moving into Canada and other regions across the globe. GC will be created as a combination of elements which have made GQ and Harvard Business Review so successful while also leveraging the potential demand for a women centric business magazine. The company believes that the lessons derived from other successful magazines are highly applicable to its own venture and will strive to learn from each one of them. GC is seeking funding of $1 million. The funds will be phased in two tranches as described below. Phase 1: $500,000: 0- 6 months - Initial set up and launch of first issue of the magazine and website Phase 2: $500,000: By end of Year 1 – Sales & Marketing, Product development & production, Admin. The company will print 35,000 copies of the magazine initially.

Vision

“A Resource for Professional Women Changing the World” Mission    

Provide a resource where professional women can learn about business research, trends and best practices along with information to support their continued success Produce high quality features at prices that are competitive to all its stakeholders Create a relationship with readers and advertisers based upon trust, reliability, and quality Encourage and promote the sharing of knowledge and success

Keys to Success       

Building a valued reputation and business relationships in Texas Segment articles to meet target market needs Strong distribution network Articles by respected journalists on relevant business topics Identify relevant topics through use of social media and online discussion forums Utilize online and print versions to allow for value in advertising and for expanded reach Provide value for money through pricing and quality of the magazine

Product and Services Summary A print and online magazine with articles for women in business. To facilitate branding and market expansion, each issue will include a focus on a target industry sector such as:         

Women in Energy Women in Investment Banking Women in Military Women in Medicine Women in Art Women in Technology (IT) Women in Law Women in Fortune 100 companies Women in Finance Women need a relevant business magazine that supports their success in various industry professions.

Business Model



GC will focus on the recent happenings in the world of business, economics, media, and fashion, to keep readers abreast of global and regional trends, while maintaining a focus on the ‘know‐ how’ and ‘need‐to‐know’ articles from real world practitioners.



In order to achieve its objectives, the company has identified a series of short and long term objectives.



Some of the short term goals will include: o o o o o

Roll out a prototype to select audience for feedback within the next 4 months Initiate sales to reach 35,000 copies initially Identify and finalize sales (ad-space) opportunities to allow financial break even within the first fiscal year of operations Ensure that quality of articles, information and story matches best practice norms Build effective marketing channels both on line and off line

Some of the longer term goals will include: 

Grow to being amongst the top three women’s magazines in the US



Improve engagement with readers and advertisers through frequent visits and programs



Look at collaboration and partnerships to expand scope and scale of business activities



Increase Distribution in Primary Target Market of Texas



Increase distribution throughout the US, then Canada, followed by Europe and Asia

Operation Model Phase 1 GC will initially focus sales of its magazine in the state of Texas with distribution in Houston and Dallas primarily. Key magazine distributors may include large industry players such as:    

Interlink Dominion The News Group Coast to Coast

Breaking through to the Boardroom

The $80 million woman that did it her way

Phase 1

Phase 2

Launch Magazine in Texas

Other North American and Global Markets

Phase 3

Reality TV Show

Phase 2 In the next phase, the company may look at expanding its distribution to other parts of North America, Europe and Asia, which has seen strong economic growth over the past decade. The company will develop a wider market for the magazine and launch a reality TV program about a group of women entrepreneurs who set out to launch a magazine for executive women. This will form Phase 3 of the company’s strategy.

Target Market Segment The target customer will be a women interested in having a magazine dedicated to nourish their success and offer information that can make their life and business better. Greater reach will include:  Women’s Conferences  Health Clubs  Private Clubs  Golf Clubs  Executive Airport Lounges & bookstores  Law Firms  Universities  MBA schools and Alumni groups  Doctor offices including Plastic Surgeons  Dentist offices  Political offices

Market Analysis Texas â&#x20AC;&#x201C; Quick facts1 People Quick Facts

Texas

USA

25,145,561

308,745,538

20.60%

9.70%

20,851,818

281,424,602

Persons under 5 years old, percent, 2009

8.40%

6.90%

Persons under 18 years old, percent, 2009

27.80%

24.30%

Persons 65 years old and over, percent, 2009

10.20%

12.90%

Female persons, percent, 2009

50.10%

50.70%

White persons, percent, 2010 (a)

70.40%

72.40%

Black persons, percent, 2010 (a)

11.80%

12.60%

American Indian and Alaska Native persons, percent, 2010 (a)

0.70%

0.90%

Asian persons, percent, 2010 (a)

3.80%

4.80%

Native Hawaiian and Other Pacific Islander, percent, 2010 (a)

0.10%

0.20%

Persons reporting two or more races, percent, 2010

2.70%

2.90%

Persons of Hispanic or Latino origin, percent, 2010 (b)

37.60%

16.30%

White persons not Hispanic, persons, 2010

45.30%

63.70%

Living in same house 1 year ago, pct 1 yr old & over, 2005-2009

80.80%

83.80%

Foreign born persons, percent, 2005-2009

15.80%

12.40%

Language other than English spoken at home, pct age 5+, 2005-2009

33.60%

19.60%

High school graduates, percent of persons age 25+, 2005-2009

79.30%

84.60%

Bachelor's degree or higher, pct of persons age 25+, 2005-2009

25.40%

27.50%

1,621,077

22,894,578

24.7

25.2

9,724,220

129,969,653

Homeownership rate, 2005-2009

64.70%

66.90%

Housing units in multi-unit structures, percent, 2005-2009

24.30%

25.90%

Median value of owner-occupied housing units, 2005-2009

$118,900

$185,400

Households, 2005-2009

8,269,046

112,611,029

2.81

2.6

Per capita money income in past 12 months (2009 dollars) 2005-2009

$24,318

$27,041

Median household income, 2009

$48,286

$50,221

Population, 2010 Population, percent change, 2000 to 2010 Population, 2000

Veterans, 2005-2009 Mean travel time to work (minutes), workers age 16+, 2005-2009 Housing units, 2009

Persons per household, 2005-2009

http://quickfacts.census.gov/qfd/states/48000.html

Persons below poverty level, percent, 2009

17.10%

14.30%

Texas

USA

Private nonfarm establishments, 2008

5,223,361

7,601,169

Private nonfarm employment, 2008

92,319,551

120,903,551

15.0%

6.00%

Nonemployer establishments, 2008

1,835,870

21,351,320

Total number of firms, 2007

2,165,252

27,097,236

Black-owned firms, percent, 2007

7.10%

American Indian and Alaska Native owned firms, percent, 2007

0.90%

Asian-owned firms, percent, 2002

4.50%

4.80%

Native Hawaiian and Other Pacific Islander owned firms, percent, 2007

0.10%

Hispanic-owned firms, percent, 2007

20.70%

8.30%

Women-owned firms, percent, 2007

28.20%

28.80%

Business Quick Facts

Private nonfarm employment, percent change 2000-2008

Women represent approximately 50% of the population in Texas and own almost 28% of businesses in the state.

State of Magazines in US â&#x20AC;&#x201C; An Overview2 While online publications grow, print magazines continue to flourish with solid growth.

http://www.magazine.org/advertising/magazine-media-factbook/downloads/2011-12-MPA-factbook.pdf

Womenâ&#x20AC;&#x2122;s magazines continue to launch in viable numbers however, the lack of womenâ&#x20AC;&#x2122;s business magazines or editorial features in business magazines written by women continues to be chronic.

Magazine Readership and Reach3         

93% of adults read magazines with readership in the younger markets significantly higher Magazine audiences are growing faster than television and newspapers in 2010 More than eight out of ten African-American adults (83%) are magazine readers. They read an average of 15.8 issues per month, compared to 10.8 issues per month for all U.S. adults. More than two out of three African-American adults (69%) who read magazines are between the ages of 18 to 49, compared to only 60% of the U.S. adult population. According to Oxbridge Communications, from 2006 to 2010 the total number of African-American targeted titles rose from 129 to 146, an increase of 13.2%. More than 75% of adult Hispanics read magazines. They read an average of 11.8 issues per month, slightly higher than the U.S. average. Magazines serving Hispanic readers grew from 155 in 2006 to 184 titles in 2010, an increase of 18.7% over the five year period. Nearly two-thirds of teens, 66%, read magazines. A cross-media comparison conducted by Carat Insight found that the top 25 magazines lead the top 25 primetime television shows in reaching teens age 12 to 17 by more than twice as much.

http://www.magazine.org/advertising/magazine-media-factbook/downloads/2011-12-MPA-factbook.pdf

Magazines reach more adults and teens than television

Consumers pay more attention to magazines than other media.

Consumers enjoy and trust magazine advertising

Magazines drive action for mobile users

Consumers are accessing magazines on their connected devices

Growth in iPad apps for U.S. magazines

The number of magazine websites has increased 30%

Circulation Statistics

Competitor Analysis Magazine

Type

Forbes Woman

Online & Print

Yes

http://www.forbes.com/forbeswoman/

Par Excellence Magazine

Online

Yes

http://www.parexcellencemagazine.com/

The Executive Female

Woman2Woman Business Magazine

Online & Print

Yes

http://www.woman2womanbusiness.com/index.html

Little PINK Book

Online

Yes

http://www.littlepinkbook.com/little-pink-book

Enterprising Women

Online & Print

Yes

http://enterprisingwomen.com/

The Next Women

Online

Yes

http://thenextwomen.com/about-us

MWIB (Minorities & Women in Business)

Yes

http://www.mwib.com/AboutMWIB/tabid/57/Default.aspx

WMB

Yes

http://www.womenmeanbusiness.com/live/who.html

Working Women

Yes (In Australia)

It's Women's Business

Startup Phase

http://itswomensbusiness.wordpress.com/

Destiny Connect

Online & Print Online & Print

Yes (In South Africa) Yes

http://www.destinyconnect.com/page/about-us

MBE (Minority Business Entrepreneur)

Online & Print

Yes

http://www.mbemag.com/Magazine/

Women entrepreneurs Shepreneur

Online & Print

Yes

http://womenentrepreneurs.shepreneur.com/

AWB (Arab Women & Business)

Yes

http://awbmagazine.com/about.html

Business Woman

Operational

URL

http://www.womensnetwork.com.au/page.cfm?PageCode= magazine&site_id=1

http://www.businesswomanpa.com/index.html

SWOT Analysis The SWOT analysis below looks at the internal capability of the business and the external market in which it has to operate. This is essential, as GC will face intense competition from established magazines and newspapers.

Strength:    

Founder based in Texas – in the initial target market Competent team Gap in the market for women centric professional magazines Aggressive marketing

Weakness:    

Opportunity:    

Increasing market demand Both online and offline versions will attract a wide audience Women are moving up the corporate ladder rapidly Women from North America, Europe and Asia out to crack the “glass ceiling”

Easily replicable concept Unknown brand name Nonexistent distribution channels Revenue model untested

Threat:    

Existing players Growing online media New entrants Advertisers pulling out at any stage

Strategy Implementation Marketing Strategy A good product or service is mandatory for a success of a venture which is equally complemented by the ability of an organization to ensure that it can identify and satisfy customer needs at a profit. GC has identified a gap in the market for professional women, looking for a dedicated magazine with domain knowledge and has geared up its product to fulfill this ever-growing need.

Engagement Strategy: - Call Centers - Social Networking Sites

Product Offered : - GC a magazine for the professional career woman

- Distribution Channel

Target Market: - Houston

Pricing Strategy :

- Business Professionals

- Ad revenue matching the cost and margin

- Entrepreneurs

- Added value than price-cut - Print and online version

Product Offered – GC is a magazine dedicated to serving career focused women who need to be updated on both professional and social opportunities. Pricing Strategy – The pricing will be competitive keeping strategies like – matching advertisement revenue with the cost & margin, preference on value addition rather than price reduction, the relative effect of increase in price on sales etc. Target Market – GC will target the area of Texas for its offline version, while the online magazine will be available across the globe via the internet. At a later stage, the company may enter other markets in North America and Asia. Engagement Strategy – GC will use extensive advertising and promotional campaigns as an entry strategy. The company will use traditional marketing platforms like flyers and bill boards along with new age social media networks. There will also be a web application to push articles and stories to members. Some of the activities to be undertaken include:  Call Centers – to call and notify target sectors about the magazine launch and offer a free first copy.  Direct Mail – to be sent to targeted lists  Free copy in the bags at Women’s business conferences  Booths at Women Conferences and Trade Shows i.e. http://www.wglnetwork.com/ http://www.winconference.net/ http://www.zu.ac.ae/main/en/wagl2012/index.aspx  Engage key note speakers to write articles in the magazine  Engage with magazine industry agents to sell advert space  Initial copy to be sent free to key advertisers and target markets to enhance brand presence

BHP’s first female mine manager

Website The website will be a strong source of engagement with customers. The GC website will also be a platform through which readers can buy and download a magazine and have a moderated forum for opinions. The website will include all the features necessary and a secure online payment option. University Affiliation GC Magazine will work to develop an affiliation with a prestigious university with a business school such as the University of Texas. This will offer some benefits to the magazine:   

Access to research to support articles Reports on the latest trends in business Opportunities to promote the magazine to professors and students

Pricing Model

Cost

Competition

Market Acceptance

The pricing of GC Magazine will be strategized based on competitor pricing, cost, advertisement revenues and margins. Advertisers will include, but not be limited to:  Electronics – mobile companies, wireless, computer etc.  Business Travel – airlines, hotels  Women’s business conferences  Universities – will advertise Graduate degree programs  Medical advertisers – Plastic surgeons, Dentists  Consultants – image consultants and Press Relations consultants  Investment companies – money managers  Vitamin companies

GC will charge between $25,000 - $30,000 per full page from advertisers. This is substantially lower than the advert charge out price of other magazines as shown below: Name

Rates

Type of Advert

More Magazine

$140,000

Full Page

Harvard Business Review

$ 41,000

Full Page

Oprah

$ 139,000

Full Page

The typical strategies for sales may involve: -

Preference of Added Value over Lowered Price: Trends show that added value (e.g. thicker magazine, adding on special sections, special packaging etc.) is more appealing to a potential buyer than lowered cover price. It is difficult to gain sales momentum by reducing the price, even if the lowered price is announced on the cover of a magazine; an extra dollar from the cover price makes a big impact when added on, but less of an impact when taken off.

Price Point: GC will try to keep a point of “$.99” factor in its price line. Tests show that consumers are just as likely to buy a magazine priced at $3.99, than buy one at $3.25 or $3.50.

The online version will also be available on the GC website to download at a price. Magazine Ideas

GC Women Judges In the US

Judge Judy – top TV program in 2011

In June 2011, Judge Judy once again topped all first-run syndication, for the week ending May 15, and topped all syndication, period. Women in the military is a current topic that attracts attention

Operational Flow The operational flow and advert generation process is covered in the diagrams below. While GC will be published quarterly, the roll out process covering topics, engaging with writers and logistics will form a constant loop for the organization.

As a new magazine, GC will need to market itself to potential advertisers as a viable partner, with the potential of attracting the appropriate critical mass of visitors. GC will provide regular feedback to its advertisers on the level of sales achieved and number of hits on its website.

Revenue Model The revenue model of GC is shown below:

The company will generate revenue from the following: - Advertisement in the magazine - Sale of printed version â&#x20AC;&#x201C; both subscription and off the shelf - Online version sales The cash outflow of the company will service the following: - Administration - Printing - Salary - Cost of distribution - Guest Writers - Marketing

Milestone Plan The company expects to launch GC by February 2012.

Management Structure Founder

Administration Team

Contractor

Editorial Team

Contractor

The organization will be run by the management team that will supervise a small group of staff with a larger group of contractors.

GC Attorneys

Social Media

When Compliance is an Issue

Bringing Balance to The Legal Profession

Getting the Job Done Managing Professionals in Your Department

Best Law Schools

A Resource for Professional Women Changing the World Best Law Schools

Getting the Job Done Managing Professionals in Your Department

Financial Projections

Start-up Start-up Expenses Initial Infrastructure Set up Marketing Product Development General & Admin Total Start-up Expenses

$200,000 $450,000 $250,000 $100,000 $1,000,000

Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets

$0 $0 $0 $0

Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required

$1,000,000 $0 $1,000,000

Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets

$0 $0 $0 $0 $0

Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities

$0 $0 $0 $0 $0

Capital

Planned Investment Owner Investor Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital

Total Capital and Liabilities Total Funding

$0 $1,000,000 $0 $1,000,000 ($1,000,000) $0

$0 $1,000,000

Sales Forecast Year 1

Year 2

Year 3

Unit Sales Magazine (Yearly Subscription) Magazine (Retail Sales) Magazine (Online) Advertisement Total Unit Sales

3,500 98,000 5,000 21 106,521

5,000 90,000 7,500 35 102,535

7,000 116,000 10,000 35 133,035

Unit Prices Magazine (Yearly Subscription) Magazine (Retail Sales) Magazine (Online) Advertisement

Year 1 $19.99 $4.99 $1.99 $20,000.00

Year 2 $19.99 $4.99 $1.99 $20,000.00

Year 3 $19.99 $4.99 $1.99 $20,000.00

$69,964 $489,020 $9,950 $420,000 $988,934

$99,950 $449,100 $14,925 $700,000 $1,263,975

$139,930 $578,840 $19,900 $700,000 $1,438,670

Sales Magazine (Yearly Subscription) Magazine (Retail Sales) Magazine (Online) Advertisement Total Sales

Break-even Analysis Monthly Units Break-even Monthly Revenue Break-even

3,949 $36,667

Assumptions: Average Per-Unit Revenue

$9.28

Average Per-Unit Variable Cost Estimated Monthly Fixed Cost

$0.00 $36,667

Pro Forma Profit and Loss Year 1

Year 2

Year 3

Sales

$988,934

$1,263,975

$1,438,670

Other Costs of Sales

$283,860

$354,156

$409,401

Total Cost of Sales

$283,860

$354,156

$409,401

Gross Margin

$705,074

$909,819

$1,029,269

71.30%

71.98%

71.54%

$250,000

$290,000

Gross Margin % Expenses Payroll On line Advertising

$75,000

$55,000

Conference Launches

$50,000

$45,000

Travel

$40,000

$5,000

$6,000

Distribution, Subscriptions (PR) Conference, Blog etc

Utilities Rent

$24,000

$26,000

Insurance

$8,000

$10,000

Legal & Accounting

$6,000

Server Space Rental

$2,000

Total Operating Expenses

$440,000

$608,000

$610,000

Profit Before Interest and Taxes

$265,074

$301,819

$419,269

EBITDA

$265,074

$301,819

$419,269

$79,522

$90,546

$125,781

$185,552

$211,273

$293,488

18.76%

16.71%

20.40%

Taxes Incurred Net Profit Net Profit/Sales

Note: Other cost of sales is shown below. Direct Cost (Print) Distribution Margin to Retail outlet

Year 1 123200 12320 148340

Year 2 149600 14960 189596

Year 3 176000 17600 215801

Pro Forma Cash Flow Year 1

Year 2

Year 3

Cash Sales

$988,934

$1,263,975

$1,438,670

Subtotal Cash from Operations

$988,934

$1,263,975

$1,438,670

Subtotal Cash Received

$988,934

$1,263,975

$1,438,670

Year 1

Year 2

Year 3

Cash Spending

$250,000

$290,000

Bill Payments

$519,209

$734,187

$847,581

Subtotal Spent on Operations

$769,209

$1,024,187

$1,137,581

Subtotal Cash Spent

$769,209

$1,024,187

$1,137,581

Net Cash Flow

$219,725

$239,788

$301,089

Cash Balance

$219,725

$459,513

$760,602

Cash Received Cash from Operations

Expenditures Expenditures from Operations

Pro Forma Balance Sheet Year 1

Year 2

Year 3

Assets Current Assets Cash

$219,725

$459,513

$760,602

Other Current Assets

Total Current Assets

$219,725

$459,513

$760,602

Long-term Assets

Accumulated Depreciation

Total Long-term Assets

$219,725

$459,513

$760,602

Year 1

Year 2

Year 3

Accounts Payable

$34,173

$62,688

$70,289

Current Borrowing

Other Current Liabilities

$34,173

$62,688

$70,289

Long-term Assets

Total Assets Liabilities and Capital Current Liabilities

Subtotal Current Liabilities Long-term Liabilities

$34,173

$62,688

$70,289

$1,000,000

($1,000,000)

($814,448)

($603,175)

Earnings

$185,552

$211,273

$293,488

Total Capital

$185,552

$396,825

$690,314

Total Liabilities and Capital

$219,725

$459,513

$760,602

Net Worth

$185,552

$396,825

$690,314

Total Liabilities Paid-in Capital Retained Earnings

GC Magazine www.gcmagazine.com Contact: Concord Business Plans info@concordbusiness.com (604)689-2556