Business plan for the creation of a magazine editorial office. How to open your own glossy magazine: pitfalls Business plan for publishing a magazine

Beautiful, photoshopped covers are full of all the windows of kiosks and shops. Perfect models in perfect expensive clothes, luxury cars and accessories, exotic countries, all this plunges us into the ideal world that the media imposes on us so much and where shopping solves literally any problem. But is it really so?

What lies behind the beautiful cover of a fashionable glossy publication

Like any business, starting a magazine takes a lot of effort.

First of all, you need to be a specialist in this field, have experience, deep knowledge of the market, understand the specifics of the business and certainly have useful connections and contacts (where without them?).
To get a powerful market, you need to prove yourself in various events, shine and promote to the maximum, expanding the circle of acquaintances as wide as possible.
It is necessary to constantly promote the magazine on the Internet, in search engines, and actively disseminate information in social networks.

All this will entail certain costs.

Main sources of expenses and income

Expenses:
Interviews with famous personalities and exclusive photos can also significantly increase interest in the magazine, but they also cost a lot of money. For example, Western publications are ready to spend a tidy sum for scandalous, shocking news, compromising evidence, photos of newborns and celebrity pregnancies, star weddings. Our celebrities and media are actively adopting this experience and making money on everything. Why not?

Income:
Despite the beautiful articles and photographs, most magazines make money by advertising various products from the fashion and beauty industry. When you pick up a modern fashion magazine, you get the impression that you are reading a continuous stream of advertisements, occasionally "for decency" diluted with articles. And what publishers do not lure their readers: free samples with cosmetics and perfumes, small accessories as a gift, all kinds of drawings among regular readers.

Risks

Creating your own magazine is considered a high-risk business. Many journals quickly cease to exist, unable to withstand the competition and the initial financial burden. Therefore, it is necessary, first of all, to stock up on powerful capital and form the right strategy.

A worthy competitor for a printed publication is an online magazine. It does not require such large investments and has a number of advantages, namely an unlimited amount of information for every taste. But nothing can compare with the feeling of aesthetic pleasure when you hold a quality glossy magazine in your hands!

Today they are actively developing social networks which capture more and more audience every day. Most stars and public people have their own personal pages, where they share the latest news of their life and work, post their personal photos and their family members. That is, subscribers have access to the primary source of information, moreover, they can ask their questions and leave comments. This jeopardizes the need for the work of the media and threatens to lose the audience and shift from leading positions.

Also, many magazines are faced with the problem of lack of advertising. Advertisers are in no hurry to pay money for advertising in an unknown, new magazine, but prefer popular, time-tested publications.

Where to begin

There are two types of glossy magazines on the market today: the so-called domestic ones and those that operate under a Western franchise (Vogue, Cosmopolitan, Maxim, Elle). The number of Western magazines is twice as low as ours, but they are very strong competition and are in the niche of the most profitable. The advantages of such magazines are that they use a ready-made promoted name, concept and partially materials, and adapt to our reader. Plus, the publisher receives guaranteed advertising budgets from the very beginning, which are the main source of income (up to 80% of profits). The downside of such a magazine is the need to pay royalties - a percentage of sales and advertising to the brand owner (from 10 to 25%, depending on the contract).

The difficulties in creating a domestic magazine primarily lie in the rather large start-up capital, which amounts to tens of thousands of dollars: an entrance fee to get on the shelves and advertising costs. The payback period for such a magazine is about three years. The advantage of our magazines over foreign ones is that their content is fully consistent with the mentality of the reader.

Step by step plan to create your own gloss

We study the market and determine the target audience: what kind of reader is the magazine intended for. It is necessary to find your own niche, to offer the reader something unique and inimitable. The most popular are specialized magazines (for example, about children, about motherhood, about fishing, about finance, etc.).

We draw up a business plan with the calculation of the exact amount of start-up capital and the payback time of the magazine. Some initial costs are described above.

We attract investors. Since the creation of a glossy magazine requires a lot of start-up capital, the best solution is to find people willing to invest money in your project. Interested businessmen can become a partner, co-owner or sponsor of a successful glossy magazine.

We form a team. One of the main and main components of the magazine's success is a strong and experienced team, which should consist of professionals who know their business. But it is also important to involve new people in the cause. They can bring in new ideas that will serve as an incentive for everyone, which will give a powerful impetus to the development of the business. And, of course, there must be a strong leader - Chief Editor. Key specialists: editor, designer, layout designer, journalists, proofreader, accountant, head of the advertising department. Many publications invite specialists to work remotely, trying to save money. Additional workers publishing houses: managers, secretary, office cleaner, driver.

It is necessary to find an office space, provide it with the necessary office equipment, stationery and Internet access. We create favorable conditions for coordinated work and a positive end result.

We determine the format of the magazine, the frequency of issues, the circulation and the volume of pages.

We decide on the design of the magazine and cover. We select thematic headings. We remember that the magazine must have its own unique style and have a new and exclusive idea so that it can take its own place among the competition.

We are working on a mechanism for implementing the journal. Initially, a free distribution option is possible. The magazine needs to be recognizable. We distribute the magazine in locations target audience, a women's magazine - in beauty salons, clothing and cosmetics stores, a children's magazine - in children's goods and toys stores.

We are looking for partners in the printing industry. Still, for a quality end product, you need quality printing and good paper.

We invite you to watch the video detailed description how to start your own business and not go bust. In the video, the editor-in-chief of a glossy magazine shares secrets successful business and development strategies, gives advice on how to withstand competition and make the magazine interesting for advertisers and readers.

Weekdays editorial Tatler

The atmosphere in the editorial office and the staff play a very important role in the quality of the journal. If an atmosphere of unity and cohesion reigns in your team, your magazine is doomed to success!

In the next video, we have the opportunity to look into the editorial office of Tatler magazine and see all the work from the inside. The editor-in-chief of the magazine Ksenia Solovieva, a beautiful, strong and energetic woman, introduces us to the members of the publication's team and conducts a tour of the editorial office.

Everyday life of Elle

Next, we get acquainted with the editor-in-chief of Elle magazine - Elena Sotnikova, who will tell us about the work of the editorial office, her difficult start as the chief editor, the structure of the magazine and its main principle - Mix and Match. We also learn why Elle's covers never feature stars.

Allure Editorial Weekdays

Ksenia Vagner, editor-in-chief of the magazine, speaks about the main concept of the magazine - not just to talk about the latest in the world of fashion and beauty, but also to reveal them from a practical point of view. The pride of the journal is the heading - Laboratory. The editor-in-chief introduces us to the main headings of Allure Russia.

Everyday life of the Cosmopolitan Shopping editorial staff

Next, we suggest watching a video about the working days of Cosmopolitan Shopping magazine. Alisa Radlova, editor-in-chief of the magazine, will reveal the pros and cons of her work. We will also learn about the main concept of the magazine and its subject matter.

Weekdays editorial "Around the world"

We invite you to get acquainted with the team of the educational magazine "Around the World". From the video we learn about the stages of development and the modern concept of the magazine, which has existed since the distant 1861. What is the key to the success of this publication?

Behind the beautiful cover hides the hard work of the whole team. The carelessness and ideal life on the pages of the magazine is just an illusion, because there is nothing perfect in the world. This is a kind of motivation and incentive to improve and make your life better. To achieve any goals, you need to work fruitfully. Always do a little more than what is expected of you - and you will succeed. In the first place should be the interest of the reader, and not the pursuit of advertisers. The main thing is to love what you do, and then it will bring you success and financial well-being. Good luck to you!

Magazine business plan: example
- Step 5. First release.
- Step 6. Development of the magazine.
Taxation
Business Journal Example
Is it easy to create your own journal?

Despite the growing popularity of e-books and magazines, the lion's share of the market still belongs to print media. People still read magazines at home, in transport, in line.

We will analyze how to write a business plan for a magazine and whether it is possible to make money in the publishing business.

Magazine business plan: example

The business plan of the journal should include a detailed calculation of the main costs and expected income of your publication, as well as an analysis of the market and competitors.

Key project parameters that are needed to draw up a competent business plan:

editorial staff - number of people;
wage fund - the average amount per person per month;
the cost of printing a circulation - for each issue;
operating costs per month - except for labor costs and printing;
tax deductions per month (depending on the choice of taxation system).

Based on them, they calculate:

average projected revenue per month;
average projected revenue per year;
expected net income for the year;
expected average income owner/investor (aftertax payments, minus initial investments);
share of net profit;
break even;
financial indicators - IRR, PI, NPV.

You can get such a profit in the ideal case - if all 12 editions of the magazine are completely sold. The business plan should also provide for a break-even point at which the journal will recoup the cost of its publication.

Step by step instructions on how to make your own journal

Step 1. Definition of the target audience, topic and format, market analysis.

Magazines are industry, information-journalistic, advertising and entertainment. You need to immediately decide on the direction and niche. You should not try to cover several areas at once, but you should not take too narrow a topic either: with a high degree of probability, you will not be able to withstand competition from popular niche publications.

Let's say your magazine is about business. In this case, it will be better if the topics of the articles help both an established businessman and a beginner who is just planning his business. This will allow you to expand your reader base, thereby attracting more people and increase the circulation of the magazine, as well as to interest potential advertisers. Special attention It is also worth paying attention to design development.

Immediately identify your audience for reading - their gender, age, profession, hobbies and interests. Now the most popular topics for magazines are beauty, sports, medicine, business. But no matter what topic you choose, it is important to have a "zest" - reprinting other people's texts, you will not achieve popularity.

You need to immediately determine how many times a month your magazine will be published. Also at this stage, you also need to study your competitors. This will allow you to identify their strengths and weaknesses and find your own. competitive advantages. To stand out from other magazines and attract readers, you must do what others do not.

Already at this stage, you need to start drawing up a business plan for your publication.

Step 2. Working out the parameters of the log

At this stage, you need to consider the parameters of the log, for example:

Think about what sections your magazine will consist of and where you will get content for it weekly or monthly. It depends on what staff of journalists you need.

Also, already at the preparatory stage, it is necessary to think over distribution channels: it can be targeted distribution, distribution by subscription, retail or something else. Some expert journals can be delivered directly to company executives or to the enterprise. The choice of sales channels for your publication depends entirely on its specifics.

Also think about where and how you will print your magazine: do you need your own printing house, or will you give it to someone else's printing house for printing. As a rule, at the first stage, the second option is chosen - it is cheaper in terms of starting costs. Having your own printer will make your project more expensive, but each issue will likely be cheaper, especially if your edition is in a large print run.

Step 3. Drawing up an accurate business plan, finding funding.

Finding funding for any new project is often the main problem for a businessman.

If you have your own money and are willing to invest in a magazine, you can skip this step. But more often than not, you have to look for money to start up. Here are the main possible sources:

Partner. The partner puts money into the business and bears all the risks with you, but is also entitled to a share of the profits.
Investor. Many magazines have investors who give promotional money in exchange for the publications they want—or in the hope of getting their investment back when the magazine becomes profitable.
Loan From a business point of view, it is better to borrow money from friends and without interest. Worse - take a loan from a bank. For the first business and without a firm belief that investments will be recouped, it is better to do without a loan.

Since a magazine is a media, and many companies are interested in a platform for advertising, it is most reasonable to look for investors.

At this stage, you should have a detailed business plan ready.

Step 4. Recruitment and search for premises.

Recruitment is an important part of launching a magazine. Your employees must be professionals in their field.

You will need at least an editor-in-chief and a few journalists. Accountant, employee personnel service, proofreader, layout designer and cleaner can be outsourced. If you're planning a major magazine, you'll also need a lawyer, editor-in-chief (managing editor), department editors, a photographer, and a lot of journalists/reporters.

Also at this stage, it is also worth looking for a room for your magazine.

Step 5. First release.

You need to think about everything: themes, design, photos. The first release is very important. It is advisable to immediately launch advertising so that as many people as possible learn about your magazine.

Try to think about topics in advance and always have a stock of topics that you can quickly release to print.

Step 6. Development of the magazine.

Creating your own magazine is not everything. Your magazine should gain popularity every month. There are several tricks to promote the magazine.

1. Sponsor information about the event, become an information partner.

You provide information about any event (exhibition, press conference, opening of something) on the pages of your website or groups in social networks, as well as on the pages of your magazine.

For these services you can:

Become an official reviewer of this event (and this is unique and fresh content)
Get the opportunity to attract new customers and subscribers

Some publishers pre-package these “special services” depending on the level of the event and the company that will host it.

2. Issue additional literature, promotional materials, souvenirs.

This method is also good to allow you to expand your circle of readers. Materials can be issued as an addition to your magazine for each circulation or separately once a quarter.

It also works well to distribute souvenirs (notebooks, pens, magnets, calendars, mugs, T-shirts with the logo of your magazine) at various events.

3. Promote on social networks

Perhaps one of better ways further promotion. Create forums where topics of interest to you will be discussed. Set up targeted advertising for your circle of readers. And advertising on popular pages or bloggers will help expand your audience.

But the most important condition for successful promotion is the regular publication of high-quality and useful content. If you cannot maintain a staff of journalists, then you can find it remotely - for example, on the copywriting market.

Starting capital and earnings on the magazine

To create your own magazine, you will need start-up capital, the amount of which depends on many factors. Usually the amount ranges from 500,000 to 3-5 million rubles.

What will be included in this amount:

Office rent
Business Registration Costs
Printing services (minimum 3 months)
Compensation of employees (minimum 3 months)
taxes
Marketing costs
other expenses

It is extremely rare for a magazine to become self-sufficient in less than 6 months, so you need to have start-up capital that will cover your expenses for the first time.

But earnings from one magazine vary greatly depending on its circulation, specifics, target audience and marketing campaign. You need to be prepared for the fact that in the first months the magazine will turn out to be unprofitable and only then will it go into plus.

Taxation

You can register an individual entrepreneur or LLC, but for a novice entrepreneur IP is more suitable. In this case, you can switch to a simplified taxation system and pay 15% of the difference between income and expenses, or 6% of total revenue.

Business Journal Example

The best business magazines in Russia are:

Forbes
Fortune Harvard Business
Business
review

Each of them has its own characteristics and zest. If you want to create your own successful magazine, you need to carefully analyze your competitors, study their issues over the past few months. This will help you understand what attracts readers and how to make your magazine popular in this niche.

How to make your magazine profitable

The success of a magazine is determined by:

The right niche. If you copy the Forbes format, then it will be extremely difficult to compete with this publication. But you can write about business and money if you come up with your own original format for your publication, which will be in demand among the audience.
A smart business plan.
Quality content. Texts should be interesting and written in a living language.
Smart marketing. It is important to understand who your target audience is and how best to tell them about the new publication.

The profit of the magazine depends not only on the number of copies sold, but also on advertising revenue.

Is it easy to create your own journal?

Creating and promoting a magazine is not the easiest business. It will require investments and a lot of effort at the start. As in almost any other business, at first you will have to devote a lot of time to the magazine without making a significant profit. But if successful, the magazine will pay off and bring you substantial income.

Most of all, this type of business will suit experienced editors / publishers who understand it well from the inside. You can also try if you are well versed in the topic of the magazine and have a commercial streak.

Study the needs of your target audience, analyze competitors, think over a marketing strategy and distribution channels, make a competent business plan - and you will succeed.

Send your good work in the knowledge base is simple. Use the form below

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

Stages of project implementation

Buying a domain and hosting.
Installation and development of CMS.
Design development.
Selection and testing of authors for the quality and uniqueness of texts.
Filling the site with content, registering the site in search engines.
Registration in contextual advertising services.
Registration of a legal entity.
Media registration.
Promotion of mass media, attraction of audience and advertisers.
Analysis of the result, adjustment of the plan.
Project development.

Concept

Electronic media are valued by the audience for useful and interesting content, reliable and high-quality information on a certain topic, which will help solve any problem, learn something new. The main objective of the magazine is to provide objective and up-to-date information about the sports lifestyle in a reader-friendly format. It will be a modern encyclopedia of fitness and a healthy lifestyle with photos and videos of exercises, tips from fitness trainers and doctors.

The choice of topics is explained by the growing interest of Russians in sports, going to gyms, proper nutrition and daily routine. 60% of Russians, according to a 2016 VTsIOM survey, go in for sports. At the same time, in 2015 they were 10% less. A cult of a healthy body and organism is being formed in society, more and more public institutions and private fitness clubs.

That is why the pages of the publication will contain materials about body training at home and in gym, effective programs on increasing muscle mass and burning fat, exercise techniques, balanced nutrition, sports nutrition.

The content structure will be roughly as follows:

25% of materials about muscle development and exercises.
25% about proper nutrition.
20% on health.
15% about diets and weight loss.
15% on self care.

In addition, the journal will include articles practical advice from athletes, fitness trainers, nutritionists, doctors, reviews of specific products, such as sports gadgets, running shoes, swimming accessories and others. It is planned to actively involve subscribers in the formation of content: polls, proposals for topics, materials, experiments, contests.

The project will not require the purchase or rental of premises, as the owner and authors of the online publication will work remotely and, if necessary, hold meetings in coworking spaces or online via Skype. The purchase of special equipment is also not required, since the authors will work on their computers, photographers and cameramen - with their own equipment.

Market analysis

A 2017 VTsIOM survey showed that Russians receive information mainly from television (about 60% of the audience). Almost a third of Russian citizens prefer to use the Internet: they read websites, blogs and social networks. Basically, these are people from 18 to 34 years old. At the same time, the indicator of user activity on the Web is only growing every year, and interest in print media, on the contrary, falls. In 2016, the magazines Allure, Conde Nast Traveler, Interview, Russian Reporter, Afisha and others were closed. For this reason, creating an online edition is preferable to printing a glossy magazine.

Benefits of an online magazine:

Available to an unlimited number of readers.
Distributed throughout the country and beyond.
It has a free newsletter, which increases the loyalty of potential subscribers.
It requires less money to run, there is no need to rent a room, buy printing equipment or spend money on printing, layout, delivery of publications to kiosks.
It requires fewer employees: an editor, a proofreader, 2-3 journalists on staff, a photographer, a designer are enough; if necessary, freelancers and an accountant can be involved.
Ability to use interactive and engaging content: slideshows, videos, tests.
Ability to use links to refer to advertisers' websites.
Unlimited edition size, while the reader can get acquainted with the materials made a year ago.

The winning moment is the fact that at the end of 2017, the costs of advertisers for promotion on the Internet reached the advertising budgets on television. Analysts of the investment bank BCS Global Markets note that in 2016 online advertising accounted for 38% of the advertising market in Russia, in 2017 - 41%, then the share will grow by 2-3% annually.

Target audience of the project: 55% - men, 45% - women. The age of 70% of readers is from 18 to 34 years old, the rest are 15-18 years old and 35-45 years old. Audience portrait: higher education, an office worker in the position of a manager or a leading specialist, does fitness to maintain health and fitness, periodically works with a personal trainer and buys sports nutrition, monitors his daily routine and nutrition, annually goes on vacation to Russian or foreign resorts, prefers to buy "status" goods of famous brands.

organizational plan

To implement the project, it will be necessary to hire qualified employees with at least a year of work experience, plus experience in remote work in publications about sports, fitness, health or a similar field. Editor's responsibilities: team management, content editing, competitor analysis, selection of topics and news for publication, creation of new sections. The work of an Internet marketer includes developing a magazine promotion on the Web, creating a brand positioning model, media planning, resource traffic analysis, SMM strategy, maintaining groups in social networks, and attracting potential advertisers.

Journalists-copywriters will fill the site with unique materials, take interviews, a copywriter-translator will translate and adapt texts from English-language thematic magazines. The photographer will do staging and reportage shooting, process pictures for the site. The task of the videographer is to shoot thematic videos for the site with the participation of fitness trainers, to mount the video.

Staff members:

The owner will act as the director of the project, he will be engaged in its development, expansion and change of directions of work, analysis of results, strategic management, selection and motivation of personnel, development of a marketing campaign, increase in advertising sales. At the initial stage, and then, if necessary, a designer, a site promotion specialist, an SMM specialist, an accountant will be involved.

Marketing plan

There is a shortage of resources with high-quality, useful and unique information on the Web, content on most sites is obtained by rewriting information from other resources. Search engines support the creation of unique content, so their mechanisms are being improved in order to find and promote just such materials.

For this reason, to conquer the audience and search engines, you will need to create the largest possible amount of your own content: interviews, reports, photos, videos. This will help to attract as many visitors as possible, and consequently, advertisers - the main source of income for the media.

Ways to promote a digital magazine:

News aggregators and traffic exchangers, including News.yandex.ru, News.google.ru, News.liveinternet.ru, Newsland.ru, Smi2.ru and others.
Search engine optimization of the site.
Contextual advertising in the search network.
Maintaining groups in social networks, advertising in other groups.
Creating a subscriber base: a form for collecting email and subsequent distribution of new publications, offering unique "closed" content for subscribers.

To increase reader loyalty, you should organize contests and experiments with prizes from sponsors, accept high-quality text and photo content from them, publish interviews with famous people, conduct a survey of the audience to identify needs and topics of interest.

Production plan

Monthly expenses:

Hosting payment: 1.5 thousand rubles.
Payroll fund: 200 thousand rubles + insurance premiums 33% = 66 thousand rubles.
Services of an accountant and freelancers: 30 thousand rubles.
Website promotion in search engines and social networks: 80 thousand rubles.
Other expenses: 10 thousand rubles.

Total monthly expenses project: 387.5 thousand rubles (for the year 4.65 million rubles).

Tax payments: 15% of the "income minus expenses" of the organization (9.38 thousand rubles).

Expenses for the first year of the online magazine: 163 thousand rubles + 4.65 million rubles + 9.38 x 12 = 4.925 million rubles.

Financial plan

Variable costs of the project: 163 thousand rubles.

Fixed costs of the project: 387.5 + 9.38 = 396.88 thousand rubles / month, or 4.76 million rubles / year.

Opportunities for publishing income:

Placement of banners and videos on the site.
Sponsorship and special projects.
Placement of PR and information materials.
Paid webinars and courses with fitness trainers, nutritionists.
Individual consultations with site experts.
Connecting the site to the advertising network "Yandex", Google and others.

Monthly revenue: 450 thousand rubles.

Annual revenue while maintaining indicators: 450 x 12 = 5,4< млн рублей .

Break-even point for the first year = (revenue x fixed costs) / (revenue - variable costs) = (5.4 million x 4.76 million) / (5.4 million - 0.163 million) = 4.9 million rubles.

Profit per month: 450 thousand rubles - 396.88 thousand rubles = 53.12 thousand rubles.

Profit for the year: 53.12 thousand rubles x 12 = 637.44 thousand rubles.

Profitability\u003d profit / revenue x 100% \u003d 637.44 thousand / 5,400 thousand x 100% \u003d 11,8% .

Payback\u003d starting investments / profit for the year \u003d 163 thousand rubles / 637.44 thousand rubles \u003d 0.25 years, 3 months.

Eventually

Every year more and more Russians master the Internet and register in social networks. Surveys show that online media is also gaining popularity. An online publication on the topic of fitness and healthy lifestyle will become a popular product due to the growing interest of people from 18 to 34 years old in strengthening their health, improving physical fitness and proper nutrition.

The presented example of the project showed that this business will require small initial investments - 163 thousand rubles, which will pay off in 3 months. The project does not need to rent premises and purchase equipment, it is necessary to create a website and fill it with materials. Monthly expenses will amount to 396.88 thousand rubles, monthly net profit in the first months of work - 53.12 thousand rubles. Further, it is planned to increase the company's profitability by attracting more visitors to the site, actively promoting it in search engines and social networks and increasing the volume of advertisers' investments.

It can be argued that a digital magazine is a real opportunity to create a stable source of income and realize your creative and entrepreneurial potential. For success, it is necessary to build a competent strategy for the development of the publication, think over a content plan and hire professionals to create high-quality and useful material.

We present to your attention the project "Journal Edition".

The business plan is developed on the basis of the actual data of the operating enterprise.

Employees involved in the creation of the project highly qualified, with experience in the industry.

The business plan complies with international and Russian standards (UNIDO, TACIS, EBRD, Ministry of Economic Development and Trade of the Russian Federation, Ministry of Finance, Ministry of Construction, Ministry of Agriculture) and will adequately present your project in Russian and international banks, as well as government agencies at all levels.

If necessary, the specialists of our company will make adjustments in a short time financial calculations and a descriptive part of the project, in order to ensure that the business plan fully complies with your parameters.

The project is provided in the format of working files, in which you can make changes yourself or by qualified employees: financial model(based on Excel) and a Word (Powerpoint) file.

Main parameters of the project:

Quantitative indicators: Circulation volume - 20 thousand copies. Publication frequency - 1 issue per month.

Investment size:

in dollars 380 117
in euros 244 257
in rubles 9 016 228

Payback period of the project, years: 3,1

Basic document settings

Number of pages - 185
Number of charts - 38
Number of tables - 38

1 PROJECT SUMMARY

1.1 Goals and objectives of the project

Project initiator: Society with limited liability"XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX."

The purpose of the project: publication of an English-language magazine of popular science subjects translated into Russian on the basis of a franchise provided by the publishing house-owner of the magazine.

4 previous issues of the original magazine are planned for English language compose into a single Russian issue and publish in Russian.

Circulation volume - 20 thousand copies (50 thousand copies in the optimistic version of the project calculation).

Publication frequency - 1 issue per month. The volume of one issue is expected to be up to 160 pages, of which up to 40 pages are advertising space. The format of the publication is A4. Paper - matte, coated, cover density 170 g/sq. m. Pages with text 120.

To achieve the set goals, it is necessary to solve the following tasks:

preparation of documents for mass media registration;
media registration;
conclusion of an agreement with the publishing complex "ХХХХХХХХХ" (for the publishing house of the journal);
conclusion of an agreement with the holding group of the GC "ХХХХХХХ" (for the distribution of the magazine);
office equipment;
selection of employees;
attraction of advertisers;
the beginning of the editorial work;
issue of the first issue of the journal.

1.2 Project financing

The need for financial resources for the project is 9,016.2 thousand rubles.

It is planned that the financing of this project will be carried out entirely at its own expense. Funds for the development of the project are needed within 6 months from the date of launch.

1.3 Franchise payments

According to calculations, franchise payments for 5 years will amount to 5,902.7 thousand rubles.

1.4 Project indicators

The economic efficiency of the project was confirmed by calculating the traditional financial indicators used in the project analysis.

The project calculation horizon is 60 months (5 years).

style="text-align:left;">

№	Name of indicator	Indicator value
1	Project calculation horizon, years	5
2	Project calculation horizon, months	60
3	The amount of capital invested in the project (LDC), rubles	9 016 228
4	Revenue for the project period (SP), rubles	189 840 000
5	Net average op. income per month (NAOR), rubles	423 364
6	Average cash balance funds per quarter (ADB), rubles	10 699 060
7	Net profit for the project period, rubles	12 623 642
8	Net income (balance Money(NV)), rubles	12 623 642
9	Average profitability for the project period	6,6%
10	Discount rate (DR), %	14,5%
11	Net present value (NPV), rubles	755 865
12	Average rate of return on investment (ARR)	28,0%
13	Return on invested capital (ROI)	140,0%
14	Profitability Index (PI)	1,09
15	Internal rate of return (IRR)	20,5%
16	Modified ext. rate of return (MIRR)	22,3%
17	Payback period (PBP), months	37
18	Payback period (PBP), years	3,1
19	Discounted payback period (DPBP), months	56
20	Discounted payback period (DPBP), years	47

1 PROJECT SUMMARY

1.1 Goals and objectives of the project
1.2 Project financing
1.3 Franchise payments
1.4 Project indicators

2 COMPANY INFORMATION

2.1 Details
2.2 Legal information
2.3 Scope of activity
2.4 Company history and stages of development
2.5 Company objectives
2.6 Description of the project

General description of the project
Description of the production process of the printed product

2.7 Goals of writing a business plan

3 CONSUMPTION OF PRODUCTS/SERVICES

3.1 Product/service description
3.2 Uniqueness and distinctive features products
3.3 Qualitative and quantitative characteristics

Qualitative characteristics
Quantitative characteristics

4 MARKETING ANALYSIS

4.1 General economic situation
4.2 General analysis market for this product/service

4.3 Analysis of consumer preferences
4.4 Competitive analysis
4.5 SWOT analysis

5 MARKETING STRATEGY

5.4 Pricing strategy
5.5 Target audience

6 PRODUCTION PLAN

6.1 Calendar plan project implementation
6.2 Purchase of plant and equipment for production
6.3 Production and sales plan (income plan)

6.4 List of resources for production and their cost
6.5 Running costs

fixed costs
variable costs
Project Cost Analysis

6.6 Analysis of the budgetary effectiveness of the project

7 HR PLAN

7.1 Required production plan
7.2 Project management and administrative staff

8 RISK ASSESSMENT AND HOW TO REDUCE THEM

8.1 Factors affecting the company's performance
8.2 Risk analysis

Non-specific risks
Specific risks

8.3 Measures to reduce losses

9 INVESTMENT PLAN

10 FINANCIAL PLAN

10.1 Basic assumptions for calculations
10.2 Cash flow forecast
10.3 Income Statement Forecast
10.4 Sensitivity analysis and project break-even point

Sensitivity analysis
Break even point analysis
Break-Even Analysis Assumptions
Break-even operating activity
Break-even analysis for the whole project

10.5 Settlement financial ratios and project performance indicators

11 LIST OF TABLES AND FIGURES

11.1 List of tables
11.2 List of figures

APPENDIX 1. SALES PLAN AND DIRECT COSTS
APPENDIX 2. FINANCIAL RESULTS OF THE PROJECT
APPENDIX 3. OPTIMISTIC VARIANT OF THE PROJECT (CIRCULATION OF 50 THOUSAND COPIES)
APPENDIX 4. PRINTED MARKET IN THE RUSSIAN FEDERATION
APPENDIX 5. ADDITIONAL COMPETITOR INFORMATION
APPENDIX 6. KEY ASSUMPTIONS FOR FINANCIAL CALCULATIONS

1 LIST OF TABLES AND FIGURES

1.1 Tables

Table 1. Financial and investment indicators of the project
Table 2. TOP-10 journals by advertising budgets(in XXXX, according to price lists, in rubles, excluding VAT)
Table 3. The volume of advertising in the means of its distribution
Table 4. Advertising revenues of Russian magazines by categories, XXXX-XXXX, billion rubles
Table 5. Top 10 publishing houses in terms of magazine audience
Table 6. Comparative table of circulation volumes in XXXX and XXXX
Table 7. Information about competitors
Table 8. Analysis of strengths, weaknesses and opportunities (SWOT analysis)
Table 9. Calendar and financial plan
Table 10. Editorial equipment costs
Table 11. Structure of income by areas of activity for the project period
Table 12. Income Plan
Table 13. Fixed costs
Table 14. Variable costs
Table 15. Taxes
Table 16. Analysis of the cost structure (in relation to revenue)
Table 17. Distribution of tax payments by budget levels
Table 18 staffing with salaries
Table 19. Qualitative risk analysis
Table 20. Measures to reduce losses as a result of the occurrence of risks
Table 21. Investment budget
Table 22. The impact of changing individual parameters on project performance indicators
Table 23. Project sensitivity analysis
Table 24. Financial and investment indicators of the project
Table 25. Leading publishing houses in XXXX-XXXX by AIR
Table 26. TOP-10 magazines by advertising budgets (in XXXX, according to price lists, in rubles, excluding VAT)
Table 27. Shares of product categories in advertising revenues of the magazines "ХХХХ" and "ХХХХ" (ХХХХ, %)
Table 28. Market leaders in health journals in XXXX
Table 29. Advertising revenues of Russian magazines by category, XXXX-XXXX, billion rubles
Table 30. Top 15 advertising product categories in business and socio-political magazines (XXXX, according to price lists, in million rubles, excluding VAT)
Table 31. Main indicators of the leaders of monthly automobile magazines in groups, XXXX
Table 32. Audience of children's magazines (XXXX, thousand people)
Table 33. Top 10 publishing houses by magazine audience
Table 34. TOP-5 advertising product categories in monthly magazines (XXXX in rubles)
Table 35. TOP-5 advertising product categories in weekly magazines (XXXX, in rubles)
Table 36. Audience of one issue of magazines (by categories, data for October XXXX)
Table 37. The volume of advertising in the means of its distribution
Table 38 certain types advertising

1.2 Drawings

Figure 1. Main financial parameters of the press market in Russia, XXXX, billion rubles
Figure 2. Structure of distribution of funds for the implementation of socially significant projects in the 20th century (by types of publications)
Figure 3. Growth in the circulation of the magazine "ХХХХ", thousand copies
Figure 4. Circulation volume of existing popular science journals
Figure 5. Selling prices of competitors, rubles per copy
Figure 6. Structure of distribution points
Figure 7. Distribution of circulation by rack dimensions
Figure 8. Structure of magazine promotion channels
Figure 9. Schedule for financing investment costs, rubles
Figure 10. Schedule for financing investment costs, rubles
Figure 11. Growth in circulation volumes
Figure 12. Achievement of planned advertising space sales volumes
Figure 13. Dynamics of sales proceeds, rubles
Figure 14. Revenue structure
Figure 15. Structure fixed costs(to total fixed costs)
Figure 16 Structure variable costs(to the total volume of variable costs)
Figure 17. Structure of tax payments (over the project period)
Figure 18. The ratio of fixed and variable costs
Figure 19. Distribution structure of sales proceeds for costs and profits
Figure 20. Structure of tax revenues of budgets of all levels (over the project period)
Figure 21. Structure of investment costs
Figure 22. Break-even point excluding tax component, rubles
Figure 23. Break-even point, taking into account the tax component, rubles
Figure 24. Break-even point of the project as a whole, rubles
Figure 25. Cash flows for the project, rubles
Figure 26. Payback of the project, rubles