Newspaper Edition: A Good Way to Lose Money. Advertising newspaper - small towns business. Business to do something newspaper.

In the days of technology and the Internet, print media often endure all sorts of difficulties. But plenty of satiated with radio, television and the Internet, people all the same time again and again return to books and newspapers. For an entrepreneur, such an idea can be an incredibly lucrative business, but only if an advertising newspaper is compiled. Newspapers and magazines often have to tricks, attracting attention, but publications with advertisements and announcements always remain in demand among the population, because many companies, even in the age of the Internet, continue to print ads in newspapers in the old fashioned way.

Relevance of business ideas

The relevance of a business such as printed matter always exists, but in some periods it can be significantly reduced. All publications sold on the market work on the same principle - paid newspapers, often with paid articles and 40% of the content occupied by advertising records. The decrease in relevance is often associated with this principle, people get tired of reading the same advertising posts and articles about sponsors' products.

  • 90% consists of advertisements.
  • Distribution is free.
  • In the future, the cost of printing and publishing a newspaper is covered by advertisers.
  • Reaching a large target audience at the same time.

The relevance of the print publication exists even in the age of the Internet and high technology, because the newspaper is always at hand, it does not need special devices. The newspaper is also used for home purposes, people often save paper in order to pack something into it: in this way, they can also see the advertisement after several months from the date of issue.

How to make money on an advertising newspaper?

The whole principle of an advertising publication is very simple - an entrepreneur creates an information and advertising publication that attracts potential advertisers, who in turn buy a place to place an advertisement for goods and services.

The income received from the publication of such announcements covers the costs of printing and publishing, and additionally brings net income to the entrepreneur.

Competition analysis and possible risks

The business plan of the newspaper publication should contain an analysis of the market of competitors, it can be carried out as follows:

  1. Determine the number of advertising publications that are distributed in the selected region.
  2. Divide competitors by the topics of their publications (construction, repair, electronics, private announcements and integrated newspapers).
  3. Estimate the level of demand for each category.
  4. Choose the most popular topics.
  5. Choose the distribution method - by mail or distribution hired by employees.
  6. Solve the issue with the frequency of publication (usually 1 or 2 times a week) and the format (brochure, newspaper, magazine).

After conducting such an analysis, it will become clear which products are in maximum demand, the reasons for such demand and how to achieve it. All the key points, disadvantages and advantages of competitors should be used when starting a business.

No business exists without risks. Printed products include the following hazards:

  1. Lack of demand for the services offered.
  2. Business expenses exceed profits.
  3. Long payback period.
  4. The possibility of opening a loss-making enterprise.

To minimize risks, you need to think over a marketing campaign in advance, make a reserve stock of funds, and conduct a market analysis.

Organizational structure

After analyzing the market and demand, you need to proceed to the following points of the business plan. Each subsequent step must be treated with due responsibility, because every little thing is important in business.

Business Registration

First of all, the entrepreneur must choose a form of business registration - it can be an IP or LLC. To register a business, you need to contact the tax office with a list of these documents.

To register an IP, you will need:

  • Application form P21001.
  • Receipt of payment of state duty.
  • Passport, its copy, TIN.

To register an LLC:

  • Application form P11001.
  • The charter of the organization in duplicate.
  • Protocol for the creation of an organization.
  • State duty payment receipt.

The term of paperwork does not exceed 5 business days.

After that you need to register a print publication in Roskomnadzor, for this you will need a package of documents:

  • Application for registration as a media.
  • Receipt of payment of state duty (2,000 rubles).
  • Documents on registration of LLC or entrepreneur passport for individual entrepreneurs.
  • A letter written in free form with the specified return address to obtain a solution.

The application must indicate:

  • The name of the newspaper.
  • Language used.
  • Editorial office address.
  • The form of printed matter, its subject.
  • Region of distribution.
  • Frequency of release and circulation.
  • All sources of funding.

Consideration of the application can take up to 30 days, at which time it is worth doing the following steps.

A suitable form of taxation for this type of business is the simplified tax system (simplified form with a tax rate of 15% of the difference between income and expenses).

You must also specify the appropriate OKVED codes:

  1. 1 - the publication of books, periodicals and other types of printed materials.
  2. 13.1 - the publication of newspapers in print.

Choose the format of an advertising newspaper

Determining the format of a newspaper is a very important and difficult step. The format includes:

  • The number of pages of the publication.
  • Layout
  • Select color or black and white.
  • The presence of a glossy cover or its absence.
  • The size of the pages of the publication.

You need to invite an experienced layout designer who will design a newspaper layout based on the preferences of the entrepreneur.

Selecting categories

  1. The property.
  2. Electronics.
  3. Construction and repair.
  4. Various services.

Each of these topics should be divided into subsections from individuals and organizations, it is also necessary to include sections of a narrow focus.

Choosing a room and buying equipment

It is important to understand the differences between the printing house and the newspaper. An entrepreneur does not need to open his own printing house if he can use the services of third-party campaigns.

The editorial office is an office building, the size depends on the number of employees hired. The main requirements for the premises are:

  • Location on the first floor, maximum on the second, to ensure convenient delivery of products from the printing house.
  • The presence of all communications, most importantly - a telephone line and the Internet.
  • A place for arranging a utility room for storing products.
  • Area - from 25-35 square meters.

The equipment that needs to be purchased includes office equipment and furniture - telephone, computer, fax, necessary furniture.

Staff recruitment

At first, the entrepreneur himself can be responsible for all organizational issues by hiring several assistants, it is advisable that the hired workers have experience in this field (journalism and printing).

But in the future, for the full work of the editorial staff, such specialists will be required:

  • Corrector.
  • Journalist.
  • Advertising Specialist.
  • Accountant.
  • Imposer.

Employees whom you will hire in the future should have competent speech and writing skills, understand all the principles of publishing and advertising in general.

After the opening, until there are enough people who want to order advertising, the content of the newspaper will have to be filled with articles about the life of the city, free reports of the Ministry of Internal Affairs or the Ministry of Emergencies. This will be necessary to fill the empty space in the newspaper, as well as to create visible activity for the authorities.

Printing Choice

An entrepreneur should conclude an agreement with a printing house to print publications in the selected format and quantity.

Choosing a printing house is based on the following criteria:

  1. Prices for services - do not conclude an agreement with the most expensive company.
  2. Printing Work Experience.
  3. Recommendations
  4. Print quality is a very important point that you should pay maximum attention to.
  5. Additional services offered by the printing house.

Pay attention to the companies that your competitors use, from this list choose the most suitable one.

How to distribute a newspaper?

The business development plan of the newspaper includes a method for distributing finished products. In most cases, such products are distributed targeted at multi-storey buildings. To ensure the delivery of newspapers, you need to hire several people, you can use the services of distribution agencies or arrange with private individuals.

You can also distribute the newspaper by free subscription through the Russian Post, but there is one caveat - the newspaper cannot be just advertising, it must contain useful articles, otherwise no one will subscribe to it.

The financial part of the business plan

To open a successful business, you need to calculate in advance the amount of initial investments, current expenses, expected profit and, of course, the profitability of the project.

Starting investments and running costs

At the start of a business, an entrepreneur will need to invest money in the following items:

  • Registration of business, registration of the newspaper in the media - 10,000 rubles.
  • Office space for rent - 20,000 rubles.
  • Cosmetic repairs of the premises - 40 000 rubles.
  • Purchase of equipment and furniture - 150 000 rubles.
  • Additional expenses - 50,000 rubles.

Total, you need to invest 270,000 rubles.

Operating expenses include:

  • Rental of premises - 20,000.
  • Salary for 3 employees - 75,000.
  • Payment for printing services (circulation of 5,000 copies twice a week) - 300,000.
  • Additional expenses - 20,000.

Total - 415,000 rubles.

Profit calculation and project payback

At first, the entrepreneur will have to invest additional funds in the development of the newspaper, because the psychology of a person who wants to buy an advertisement is quite simple - why advertise in a new publication if you can pay for the service in a popular newspaper.

In the future, revenue will depend entirely on the number of advertisers and the cost of placing ads.

The return on business will occur in at least 12 months, when the recognition of the print publication will be at a level and the circulation will increase. In this case, the net profit per month will be 50,000-75,000 rubles with the possibility of a subsequent increase in income.

Based on the foregoing, the newspaper’s business plan is not a new idea, but still quite relevant. Many entrepreneurs are afraid to face difficulties, but without risk there is not a single profitable business. Creating your own print publication requires a large investment, with subsequent additional investments, while the payback period is quite long. Few businessmen are endowed with so much strength and patience necessary to achieve success in this area. But, if you still wait for the moment when the newspaper becomes known - the profit itself will flow into your hands, just on the machine.


* The calculations use the average data for Russia

"... I would like to open a newspaper. I know that now it is a very profitable business, otherwise there would not be so many newspapers and magazines. What can you advise here?"
From a letter

There are already several letters on this subject in my mail. Therefore, I decided to answer in more detail, especially since I am familiar with the newspaper area firsthand. I immediately warn that I express only my personal opinion, which can be unnecessarily biased, erroneous and distorting reality.

So,
As you know, in the public mind, the status of the publisher or editor of a newspaper (magazine) is immeasurably higher than, say, the owner of a store or restaurant. Maybe that is why so many people want to become representatives of the “fourth power”, and the number of newspapers and magazines will soon approach the number of readers.

Who usually comes up with the original idea to publish their own newspaper?

1. You are a professional journalist

And it is clear that you are extremely attracted by the opportunity to do what you consider it necessary to do it yourself, not the owners of the publication, not the chief editor, not your immediate boss.
There is only one way to achieve such creative freedom: to become the editor-in-chief yourself, and even better, to become the owner of your own publication at the same time.

2. You are an advertiser

People related to advertising in the media are gradually starting to look at the same newspaper no longer as a mass medium, but as a large number of blank pages that can be filled up with advertisements from top to bottom. Money for air, money in exchange for cheap paper - isn't that a great business?

3. You are an entrepreneur

You have been paying money for advertising your company, your products and services for more than a year. And once you get the insight: why give some money to someone else's newspaper, when you can make your own newspaper and place all the necessary advertising for free, and even in any volumes, and also take money from other entrepreneurs?

For instance:
You are engaged in real estate. It is logical to think about the release of a specialized publication on the sale, purchase, lease of real estate.
You have an advertising agency. So why not open a purely advertising newspaper, some “Business Courier”? And now leave all the advertising money to yourself, and not share it with advertising media.
You have a recruitment agency. If you had your own newspaper, then you could post paid ads for job offers and job searches.
You are the owner of a chain of pet stores. Who is stopping you from becoming a publisher of a specialized newspaper (Four Paws, Dog and Cat, Our Shaggy Friends, and Kids in a Cage)?
Etc.

4. You are a Big Businessman

As soon as an entrepreneur rises above a certain level - in terms of income, business or political rating - then he almost always has an irresistible desire to become a media tycoon. To have your own TV channel, your own newspaper or magazine is, firstly, prestigious, and secondly, you can “influence” them. What exactly will this “influence” look like, future murder dokers are extremely vague.
This desire is enthusiastically supported by close journalists - “The newspaper is simply doomed to success!” ”- who hope to receive money for at least six months of work. As a rule, they have their own vision of the future publication and it rarely coincides with the vision of the investor.

results

Nine out of ten publishing endeavors end in loss. Their size depends on the size of the initial capital, the ambitions of the initiators and their financial capabilities. If investors get bored of maintaining a loss-making media six months after launch, there are less losses; if they out of obstinacy hold out for a year, then the losses, respectively, increase.

How to avoid losing money?

Very simple: do not publish a newspaper unless absolutely necessary. And before you rejoice at the opportunities that await you as the owner or editor-in-chief of the newspaper, you should carefully consider the disadvantages and potential losses.

Firstly, it is necessary to take into account that the sale of a circulation (even if it is sold completely) at best covers only production costs. Rare exceptions do not count; they do not make weather. To make a profit, you must have advertising.
There are not enough advertisers at all. For obvious reasons, they come to the most popular and well-known publications with a large audience.

If you optimistically believe in a turbulent influx of advertisers, then ask yourself: where do you send your advertisement yourself - to a well-known newspaper with a large circulation or to a publication about which you have not heard anything before? Will you risk your (not strangers!) Money? Of course, you can attract customers with low prices, but low prices mean low incomes.
And for your publication to become famous, it takes time. With luck and an accurate marketing hit - at least six months, a year and a half - is optimal. And all this time you have to publish a newspaper at a loss, and even invest in advertising to promote it (this is an indispensable condition: in order to get money for advertising, you must first give it to the advertisement).

Of course, if you have an annual supply of financial strength (that is, money to pay for paper, printing services, journalists, editors, layout designers, designers, full-time distributors, etc.), then you can try. Of course, without a guarantee of a positive result.

Secondly, the publication of the media is an extremely time-consuming task. You will find the most difficult work to create from scratch an original, unlike other publications. And this includes the development of the general concept of the newspaper, design, marketing strategy, the choice of printing house, the establishment of a production cycle, the indispensable rumors on the day the newspaper is delivered (it’s good if the newspaper is weekly, not daily).
You will have to manage the so-called “creative people,” that is, individuals who, by definition, are little disciplined and optional, in order to achieve timely delivery of materials and news.
You will need to create a distribution network, that is, persuade the owners of newsstands and free distributors to sell your newspaper, in addition to the dozens and hundreds of publications that are already on the shelves. And they do not want to contact the new newspaper at all, because it is unclear whether the buyers will take it.

Well, suppose you have no particular need to make money on sales. Suppose you have enough advertisers (or you scored it by advertising your own company) and you are ready to give out for free.

Distributing for free is a big problem. Imagine for a minute what it’s like to give out even 5,000 copies. And you need to organize mailing and distribution through couriers (both mail and couriers also have to pay) tens of thousands of copies. Couriers are generally a special issue. Instead of knocking down their legs, running through hundreds of addresses, they tend to leave 30-50 copies in one place. Until you debug this direction, you will not have any confidence that part of the circulation is not thrown into the garbage bin closest to the editorial office.

Earn up to
200 000 rub. per month having fun!

2020 trend. Intelligent entertainment business. Minimum investment. No additional deductions and payments. Turnkey training.

Move on. It is necessary to find regular and non-standard advertising agents. But good agents are worth their weight in gold, besides they prefer to work with promoted publications. They pay more, and it’s easier to convince advertisers.

Are you ready to independently negotiate with major advertisers? The difficulty of this work can be easily imagined if you are an experienced entrepreneur, which means that you have already come across advertising agents, letters and requests to place your advertisement in a particular publication.
What was your usual reaction? - Most likely: “Tired of it!”
Now it's your turn to bother and (not) be offended by the aggressive unwillingness of potential advertisers to meet with you and your employees.

In a word, if we compare the efforts required to publish a newspaper (I mean a real, full-fledged publication, and not a primitive collection of advertising modules, which few people are interested in, and this niche has long been occupied), with work in other business areas, then there, with the same labor costs, you will earn several times more.

Thirdly, if you don’t want to engage in newspaper production yourself, but decide to limit yourself to the role of investor and owner, then tune in to the fact that the return on your money (and it will be needed much more than you think) will be very soon - so that the hired person does not promise you editor.
He did not deceive you, just more often than not - this is a person who is far from real business. He looks at the newspaper from one side of the barricade - from the side of the writer. And making newspaper materials and making a newspaper are very different things.

Ready-made ideas for your business

It requires the qualities of not only a journalist, but also a marketer, manager, organizer - preferably in one person - who can ensure the publication of the newspaper, the smooth operation of the editorial staff, the sale of the issue, and the involvement of advertisers.

It is certainly possible to find such a person, but as difficult as a talented manager for a trading or manufacturing company.

Fourth, if you are a Big Man and you really want to influence public opinion, then maybe it is more expedient to pay to the well-known, well-known media for the necessary PR materials? Or, if you have a lot of money, buy an already working and profitable publication?

Ready-made ideas for your business

Yes, but there are successful publications? Of course. Some of them have existed for a long time, since Soviet times. And this is the existing audience, accustomed to the untwisted brand, and, accordingly, advertisers.
Others had the necessary margin of safety and calmly, sometimes for two or three years, worked at a loss, gradually gaining a place in the market.
And there are publications whose owners have pre-configured that their publishing business will always be unprofitable. They need a newspaper or magazine for political or representation purposes. They contain a newspaper, like others contain a stable or a football club.

And, of course, a successful hit happens from time to time when a new publication reaches a profit in a relatively short time.

Yeah, well, then, is it not so hopeless? So you can try?

Can. And you are also lucky - on one condition: if a highly professional manager who has good connections in the advertising circles takes up the newspaper and who, relying on serious financial support, together with a highly professional team create a competitive concept for the new publication and find an unoccupied niche.

Sergey Zanin


* The article is more than 8 years old. May contain outdated data

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* The calculations use the average data for Russia

"... I would like to open a newspaper. I know that now it is a very profitable business, otherwise there would not be so many newspapers and magazines. What can you advise here?"
From a letter

There are already several letters on this subject in my mail. Therefore, I decided to answer in more detail, especially since I am familiar with the newspaper area firsthand. I immediately warn that I express only my personal opinion, which can be unnecessarily biased, erroneous and distorting reality.

So,
As you know, in the public mind, the status of the publisher or editor of a newspaper (magazine) is immeasurably higher than, say, the owner of a store or restaurant. Maybe that is why so many people want to become representatives of the “fourth power”, and the number of newspapers and magazines will soon approach the number of readers.

Who usually comes up with the original idea to publish their own newspaper?

1. You are a professional journalist

And it is clear that you are extremely attracted by the opportunity to do what you consider it necessary to do it yourself, not the owners of the publication, not the chief editor, not your immediate boss.
There is only one way to achieve such creative freedom: to become the editor-in-chief yourself, and even better, to become the owner of your own publication at the same time.

2. You are an advertiser

People related to advertising in the media are gradually starting to look at the same newspaper no longer as a mass medium, but as a large number of blank pages that can be filled up with advertisements from top to bottom. Money for air, money in exchange for cheap paper - isn't that a great business?

3. You are an entrepreneur

You have been paying money for advertising your company, your products and services for more than a year. And once you get the insight: why give some money to someone else's newspaper, when you can make your own newspaper and place all the necessary advertising for free, and even in any volumes, and also take money from other entrepreneurs?

For instance:
You are engaged in real estate. It is logical to think about the release of a specialized publication on the sale, purchase, lease of real estate.
You have an advertising agency. So why not open a purely advertising newspaper, some “Business Courier”? And now leave all the advertising money to yourself, and not share it with advertising media.
You have a recruitment agency. If you had your own newspaper, then you could post paid ads for job offers and job searches.
You are the owner of a chain of pet stores. Who is stopping you from becoming a publisher of a specialized newspaper (Four Paws, Dog and Cat, Our Shaggy Friends, and Kids in a Cage)?
Etc.

4. You are a Big Businessman

As soon as an entrepreneur rises above a certain level - in terms of income, business or political rating - then he almost always has an irresistible desire to become a media tycoon. To have your own TV channel, your own newspaper or magazine is, firstly, prestigious, and secondly, you can “influence” them. What exactly will this “influence” look like, future murder dokers are extremely vague.
This desire is enthusiastically supported by close journalists - “The newspaper is simply doomed to success!” ”- who hope to receive money for at least six months of work. As a rule, they have their own vision of the future publication and it rarely coincides with the vision of the investor.

results

Nine out of ten publishing endeavors end in loss. Their size depends on the size of the initial capital, the ambitions of the initiators and their financial capabilities. If investors get bored of maintaining a loss-making media six months after launch, there are less losses; if they out of obstinacy hold out for a year, then the losses, respectively, increase.

How to avoid losing money?

Very simple: do not publish a newspaper unless absolutely necessary. And before you rejoice at the opportunities that await you as the owner or editor-in-chief of the newspaper, you should carefully consider the disadvantages and potential losses.

Firstly, it is necessary to take into account that the sale of a circulation (even if it is sold completely) at best covers only production costs. Rare exceptions do not count; they do not make weather. To make a profit, you must have advertising.
There are not enough advertisers at all. For obvious reasons, they come to the most popular and well-known publications with a large audience.

If you optimistically believe in a turbulent influx of advertisers, then ask yourself: where do you send your advertisement yourself - to a well-known newspaper with a large circulation or to a publication about which you have not heard anything before? Will you risk your (not strangers!) Money? Of course, you can attract customers with low prices, but low prices mean low incomes.
And for your publication to become famous, it takes time. With luck and an accurate marketing hit - at least six months, a year and a half - is optimal. And all this time you have to publish a newspaper at a loss, and even invest in advertising to promote it (this is an indispensable condition: in order to get money for advertising, you must first give it to the advertisement).

Of course, if you have an annual supply of financial strength (that is, money to pay for paper, printing services, journalists, editors, layout designers, designers, full-time distributors, etc.), then you can try. Of course, without a guarantee of a positive result.

Secondly, the publication of the media is an extremely time-consuming task. You will find the most difficult work to create from scratch an original, unlike other publications. And this includes the development of the general concept of the newspaper, design, marketing strategy, the choice of printing house, the establishment of a production cycle, the indispensable rumors on the day the newspaper is delivered (it’s good if the newspaper is weekly, not daily).
You will have to manage the so-called “creative people,” that is, individuals who, by definition, are little disciplined and optional, in order to achieve timely delivery of materials and news.
You will need to create a distribution network, that is, persuade the owners of newsstands and free distributors to sell your newspaper, in addition to the dozens and hundreds of publications that are already on the shelves. And they do not want to contact the new newspaper at all, because it is unclear whether the buyers will take it.

Well, suppose you have no particular need to make money on sales. Suppose you have enough advertisers (or you scored it by advertising your own company) and you are ready to give out for free.

Distributing for free is a big problem. Imagine for a minute what it’s like to give out even 5,000 copies. And you need to organize mailing and distribution through couriers (both mail and couriers also have to pay) tens of thousands of copies. Couriers are generally a special issue. Instead of knocking down their legs, running through hundreds of addresses, they tend to leave 30-50 copies in one place. Until you debug this direction, you will not have any confidence that part of the circulation is not thrown into the garbage bin closest to the editorial office.

Earn up to
200 000 rub. per month having fun!

2020 trend. Intelligent entertainment business. Minimum investment. No additional deductions and payments. Turnkey training.

Move on. It is necessary to find regular and non-standard advertising agents. But good agents are worth their weight in gold, besides they prefer to work with promoted publications. They pay more, and it’s easier to convince advertisers.

Are you ready to independently negotiate with major advertisers? The difficulty of this work can be easily imagined if you are an experienced entrepreneur, which means that you have already come across advertising agents, letters and requests to place your advertisement in a particular publication.
What was your usual reaction? - Most likely: “Tired of it!”
Now it's your turn to bother and (not) be offended by the aggressive unwillingness of potential advertisers to meet with you and your employees.

Ready-made ideas for your business

In a word, if we compare the efforts required to publish a newspaper (I mean a real, full-fledged publication, and not a primitive collection of advertising modules, which few people are interested in, and this niche has long been occupied), with work in other business areas, then there, with the same labor costs, you will earn several times more.

Thirdly, if you don’t want to engage in newspaper production yourself, but decide to limit yourself to the role of investor and owner, then tune in to the fact that the return on your money (and it will be needed much more than you think) will be very soon - so that the hired person does not promise you editor.
He did not deceive you, just more often than not - this is a person who is far from real business. He looks at the newspaper from one side of the barricade - from the side of the writer. And making newspaper materials and making a newspaper are very different things.

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