1. NORTHERN MAINE PUBLICATIONS 646 New Dunn Town road Wade, Maine 04786 Financial Assistance Request Business Startup This has been prepared as a financial assistance request for a startup business.I am requesting financial assistance to start a (Novel) Publishing Company, NorthernMaine Publications, trade paperback books.I have over ten years experience as a creative writer and several years experiencepublishing and hand binding books.The Market for my product is World Wide.Although advancements in technology have placed millions of us in front of thetelevision screen and compute monitors, the need to read and write still exists and isgrowing.Reading expands our imagination and knowledge and from ages five to one hundred andfive, everyone reads something and they always will.Publishing is a very competitive market, but there are very few companies devoted topublishing full length novels.There are approximately seventy three publishing companies in the State of Maine.Forty three are publishers of monthly periodicals, weekly news letters and statisticaladvertisers.Seventeen more publish quarterly magazines covering Legal, Religious, Research,Educational, Real Estate, Military and Special Interest Groups.Eleven of these publishing companies are Subsidy Publishers with prices for theirservices starting at $699.00.Only one publishing company in this state publishes Novels and it is Windswept HousePublishers in Mount Desert, Maine. They do picture books and novellas for pre-school toyoung adult and they are not a subsidy publisher.I am requesting Forty Five Thousand Nine Hundred Thirty Two, ($45932.00) to start mypublishing companyPlease review the attached Business Plan. You can contact me at 207-455-5828.Thank you
2. BUSINESS PLANOwner: Steven J Gallagher 646 New Dunn Town rd Wade, Maine 04786 207-455-5828 Sreo1927@aol.com Sreo1927@hotmail.comI have over ten years experience as a creative writer in Scifi, Horror, Fiction, Fantasy andChildren’s Novels.I have three years experience as a Printer, Binder and Marketer of my product.I have over five years experience as a Business Owner/Manager, with an accumulativefifteen years as supervisor/manager.I have a Certificate in Computer Technology and am working towards a Degree inInformation Technology.I currently own 100% of my business and I market my product by word of mouth.Professional Services: I will perform my own Accounting with the assistance ofPeachtree or Quicken Accounting software and have quarterly audits and Tax preparationperformed by a CPA.I have inquired with two separate Legal Firms in the area about becoming my BusinessAttorney and have received favorable responses from both.I have spoken with three Financial Institutes in this area about setting up a Businessaccount and have received a list of available business benefits.Northeast Insurance has agreed to become my Business Insurance carrier, writing apolicy separate from my Homeowners.If acceptable, Rod Thompson, of the Maine Small Business Development Center will bemy Professional advisor.Legal Status: This business will be as it is now, Sole Proprietorship.Purpose: The primary purpose of this business is to produce high quality Novels from allgenre; Horror, Scifi, Fantasy, Fiction, Children’s Ghost, Romance, Mystery, etc.Secondary purpose is to put back to work as many people as I can as the years progress.
3. Status: Full production and marketing is scheduled for as soon as complete financingbecomes available.Current Goal: Northern Maine Publications will begin with myself and two part-timeemployees working on an on-call basis for the first six months.I plan to have five full-time employees with full benefits by the end of the third year.Long Term Goal: At the end of five years I plan to have thirty-five full time employeeswith full benefits.I also plan to have over two hundred currently unknown authors under publishingcontracts.I will have a complete Administrative Staff, but I will remain active in the operation ofthe business.Industry: The publishing industry is a very competitive market, but most publishers areself-publishers, producing their own work, or subsidy publishers charging the author asubstantial fee to publish his or her work. Even several of the larger, well-known tradepublishing houses have switched to subsidy or vanity publishing.Self-publishers publish one or two of their own manuscripts to develop a name as anauthor and then they sell out to a commercial publisher.Subsidy and vanity publishers charge a substantial fee for editing, proof reading andcover design, but these fees seldom include the cost of marketing and promotion.With the advances in technology, almost anyone can become a Desktop Publisher, buttheir business is based on periodicals, weekly and monthly newsletters, statisticalinformation usually gathered from the internet.There are a limited number of actual Book Publishing Companies in the State of Maine;eleven are subsidy, with only one or two Genre that they will accept.And there appears to be only one true, commercial publisher in this State and their targetaudience is pre-school to young adult.Schedule: Northern Maine Publications will operate eight hours a day, five days a week.Management: As owner/operator of Northern Maine Publications, my primary dutiesfrom 8:00am to 5:00pm will be format, print, bind assign ISBN and ISSN numbers,acquire copyright registration and arrange for marketing and delivery of the finishedproduct to the general public.
4. My evenings and weekends will be devoted to writing my own work as well as editing,proofreading other manuscripts, answering e-mail and snail mail inquiries andcommunicating with authors and retailers.I plan to collect no salary or benefits from my company for the first year.All proceeds will be used towards employees, their benefits, inventory supplies,equipment, marketing and expansion.Employees: I currently have four people with related experience in the field that areinterested in coming to work for me once my business opens.Two of these people have already been offered part time positions as on-call employeesand they have accepted.By the end of the first year these two employees should be full time and by the end of mythird year I will add three more full time with full benefits.Each part time employee will be paid eight dollars an hour for every hour workedbetween 8:00am and 5:00pm Monday through Friday.Each full time employee will be paid ten dollars an hour for every hour worked between8:00am and 5:00pm Monday through Friday.Full time employee benefits will include group family medical, vacation and holidays.At the end of five years, benefits package for five full time employees will cost NorthernMaine Publications $42,000.00 annually. (Price quote from telephone conversation with arepresentative of Maine Mutual).Training: training for employees will be minimal at best.Requirements will be, must be computer literate and must be responsible.Any technical training will be provided by me, whereas I already have the experience inpublishing.Operation: Product will be formatted, printed, bound, packaged and shipped onsitelocation.As manuscripts are received, they will be proofread, edited, formatted, bound and thefirst few copies will be sent back to the author for his or her written approval.Once the signed approval has been returned, the finished product will be marketedthrough the Internet, Direct Mailings and retailers.Facility: Northern Maine Publications will be established in a building separate from myhome.The building has its own heating system, bath facility and septic system. It has its ownsingle line telephone service and satellite service.It also has available room for expansion as my business grows.
5. Equipment:1- Duplo DB 280 Automated Perfect Binder $8997.001- Dahle 848 HD Ream Paper Cutter $2979.001- Dell Inspiron Studio 17 Laptop $2319.001- HP Indigo 3500 Digital Press $4599.001- Answering Machine with voice mail and four lines $ 587.002- Digital Photo Processors for book covers and author photo $ 823.00Total Equipment cost $20304.00First Year Startup Capital:One tank heating oil $ 867.00High Speed Internet by Wild Blue (FairPoint Communication) $ 880.00Electricity $1225.00Telephone $ 892.00Insurance-Liability/fire loss $ 624.00Employee Wages/part time $3600.00Payroll Taxes $1200.00Advertising/Marketing $2620.00Vehicle Expense $ 00.00Building Rent/Mortgage $6000.00Office Supplies $4400.00Postage/Shipping $1220.00Equipment/repair/warrantee $ 600.00Licenses and Fees $ 00.00Sales Tax $ 900.00Accounting Service/CPA $ 600.00Contracted Work $ 00.00Total First year Startup Capital $25628.00Total Equipment Cost $20304.00Total $45932.00
6. Material Handling: All shipping and receiving will be handled by me.Inventory Control: All inventories will be computerized.Shipping: All finished product will be sent through direct mail, UPS, FED-X.Supplies: All supplies will be purchased through local suppliers. Trade accounts havebeen agreed upon when business is in full operation.Pricing for Finished Product: Current pricing was established through market research,via Internet, telephone interviews and actual on-site inspection.Profit: The sale of ten thousand books will cover all equipment costs, it will cover thefirst years operating expense, it will pay the authors twenty five percent royalties andleave approximately forty percent profit. This profit will allow for business expansion.Competitive: Prices for the finished product are flexible and based on market needs, canbe adjusted to allow for adequate profit.Cheaper Products: There are some cheaper products on the market today, but thedifference in price is less than twelve percent.There are also lesser quality products on the market for a substantially higher price.Credit: Credit will be established for customers under certain circumstances.Accounts will be monitored by phone calls and letters.Credit Cards: Credit Cards will be accepted after business is in full operation.Product Benefits: My product will awaken the imagination and expand the knowledgeof the general public.There will always be a need to read and there will always be a need for entertainment.Licensing Requirements: Other than acquiring Tax numbers, registering Copyrights andassigning ISBN and ISSN numbers, there are no licenses or permits required.There are no restrictions or regulations.There are no Federal, State or Local agencies that need to be registered with or have aninfluence on my business.
7. Promotion: All promotion will be accomplished through Internet, Television, Radio,Newspaper, Yellow Pages and Direct Mail.Literary Agencies and Writers Groups are being contacted which will be an invaluableaid to promotion.Distribution: All finished products will be made available through Wholesale outlets,Retail outlets.They will be made available by telephone, mail order, direct mail and eventually by e-commerce.Retailers are now being contacted with a proposal, by mail.Packaging, handling and shipping has been calculated into the retail price.Competitors: There are no competitors for my finished product or my target audience,within a three hundred and fifty mile radius of my location.My product will be of interest to all audiences covering all subjects.Business Location: Northern Maine Publications will be established in a building on myproperty, but separate from my home.The building is of an “L” shape, measuring 16x32x32x16.Five hundred and twelve square feet have been completely finished off to serve as myinitial site.It has an eighty five thousand BTU hot air furnace, capable of heating an area three timesits current size.There is a bathroom facility and kitchenette with hot and cold running water, a stove,refrigerator and satellite connection.The building has a one hundred amp electrical service, single line telephone service andan additional two hundred and fifty square feet of space available for expansion.The office has windows facing North, East, West and SouthThere is a front door for customer and vendor access and two rear doors for egress.The office is close to my home and I own the surrounding property.There are no renovations needed at this time or in the near future.There are no zoning laws which prevent business operation on this road or in this town.The business is located at 646 New Dunn Town road Wade, Maine.
8. Steven GallagherNorthern Maine Publications646 New Dunn Town rdWade, Maine 04786Assets:Cash on hand $ 300.00Savings $ 15.00Retirement $ .00Accounts and note receivable $ .00Life Insurance $ .00Stocks and Bonds $ .00Real Estate (Office Building Only 2010) $ 19500.00Real Estate (Residence recent Appraisal 2010) $ 85000.00Auto (1986 Dodge Truck) $ 500.00Other Property $ .00Other Assets $ .00Total Assets $105,312.00Liabilities:Accounts Payable $ .00Residential Mortgage, balance $42400.00Investment Mortgage $ .00Loans (Signature, Installment) $ .00Unpaid Taxes $ .00Other Liabilities $ .00Total Liabilities $42400.00Annual Income:Social Security Disability $17364.00VA Disability $ 1476.00Total Income $18840.00
10. Projected Income for First Year:Month One 165 units $ 2805.00Month Two 190 units $ 3230.00Month Three 220 units $ 3740.00Month Four 275 units $ 4675.00Month Five 330 units $ 5610.00Month Six 410 units $ 6970.00Month Seven 525 units $ 8925.00Month Eight 700 units $11900.00Month Nine 1110 units $18870.00Month Ten 1550 units $26350.00Month Eleven 2175 units $36975.00Month Twelve 3150 units $53550.00I currently have one author of Poetry, (Dena Mullen of Maine) whose manuscript I haveformatted, printed and bound.I have sent the first printing back to her for her written approval, but I have asked her notto sign the contract until she hears from me.I have a second author of Fantasy, (Alan Mooren of Indiana) and he is in the process offinishing his last three chapters.I just received a third manuscript of Scifi, (Michael St Peter of Washington State).I have two additional authors with completed manuscripts, Childrens and Horror, (DawnBannagan and Crystal Swazey both of Florida).Plus I have nine more of my own manuscripts to print, bind, publish and market.This does not include the two books I have under contract with two other, not tooadequate publishers.