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Business Plan on newspaper


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Business plan to startup a newspaper and ways of analysis of Pros and Cons

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Business Plan on newspaper

  1. 1. Romil P. Shah, Gunjan Gupta Institute ofTechnology, Nirma University, EC Sem-V B-Plan: Fortnightly Newspaper in Nirma University
  2. 2. Flow  Idea  Objectives-Mission  Marketing and Sales Strategy  Management Strategy  Financial Plan  Projected Break-Even  Projected Profit  FutureAspects  Summary
  3. 3. Idea  An urge for a periodically arriving newspaper in our college made us revisit this idea.  A survey conducted by a group of Law students last year in K-Canteen proved that maximum number of people would love to have a newspaper of Nirma University.  The need of an innovative way to communicate through people, be an entrepreneur and also to earn and start a business this idea struck.
  4. 4. Objectives The initial objectives ofThe Mingles are as follows:  To raise seed capital of around two three publications (nearly 50,000 Rs.) to ensure publication and to establish a cash reserve to market subscriptions.  To publish two 16 page issues initially with press runs of 1000 promotional copies each.  To go to 20 pages by issue number three and increase press runs to 3000 promotional copies.  To sell an average of 15% of total pages per issue for ads and promotions(Sponsorship).
  5. 5. Mission  “Mingles" newspaper is for the artist who is a worker at any level.The newspaper has a commitment to be a platform to profile artists who are representing artistic vision in the marketplace and who can both encourage and provide role models to other men and women. Our mission is to promote the concept of "community" in the workplace.  Apart from that, creation of a newspaper for Nirma University will be a major target mission.  The articles will be all original and rarely copy-pasted.
  6. 6. Marketing  New subscriptions are both sample and media based. Sampling will be done to both known arts organization members and to artist mailing lists. Several of these databases are already available toTeam Mingles.  Sample runs will be: 1000 issues on the first and second runs, 2000 issues on the second and third runs, and 3000 issues on the fifth and sixth issues.All cost associated with these sampling programs are included in the advertising and promotion budgets for those months.  At later stages we will employ the subscription technique in order to maintain a constant knowing of the publication copies.  All sales projections through this multi-channel approach will reflect the different pricing and margin considerations pertinent to each.
  7. 7. 0 5000 10000 15000 20000 25000 30000 35000 Fortnight 1 Fortnight 2 Fortnight 3 Fortnight 4 Fortnight 5 Fortnight 6 Fortnight 7 Fortnight 8 Copies Total Cost
  8. 8. Sales and Distribution  Distribution of the newspaper will mainly be done earlier through classes.  On later stages selling through canteen desks can be done.  All direct sales are booked at full revenue. Cost of product is deducted for 6 issues per year. Fulfillment costs are expensed.  Direct sales of the newspaper are billed to maintain a proper finance statement.The newspaper is an ideal vehicle to promote these sales.  Future sales are planned directly over the internet from the website which is to be made.
  9. 9. Management strategy  With a present team of 15 and increasing number of people, we will be able to divide the complete group into sectors like editorial, sponsorship, designing and promotional divisions.  A proper heading will be done by a President in order to maintain the order.  The sponsorship and publishing will be 3-4 subscriptions ahead of the actual printing.  Maintain a backup team for all sections to continue work even during exams etc.
  10. 10. Financial strategy  After initial capitalization growth can be financed largely through internal cash flow provided subscription targets are met. In the event of a sales shortfall, marketing can be cut back temporarily to preserve cash. Or, more likely, additional investment may be sought to re-accelerate productive campaigns if growth demands more funding.  The company created by this plan will generate cash as soon as subscription base reaches critical mass.  The publishing and sponsorship will be 3-4 weeks before the actual date of selling of the newspaper.
  11. 11. Projected Break-Even  Have been to many publisher houses and the proper one we found had provided with following details for initial 1000 publishings: Per 4 pages B/W : Rs. 0.75 (negotiated) Per 4 pages Color : Rs. 3 (negotiated) Total price for 1000 copies: Rs. 12000 (negotiated to 10500) Additionals: Rs. 500 Hence Break Even is maintained if sponsorship worth Rs. 11000 is taken into account.
  12. 12.  The initial sponsorship received is Rs. 15000 by four store owners in Surat.  Another chemical based company provided Rs 5000 total worth sponsorship for initial 4 issues of two months.  Academic biggies provided sponsorships on basis of a small section in the newspaper.
  13. 13. 0 1000 2000 3000 4000 5000 6000 7000 Fortnight 1 Fortnight 2 Fortnight 3 Fortnight 4 Fortnight 5 Fortnight 6 Fortnight 7 Fortnight 8 Recovered via Charges Copies
  14. 14. Profit  As discussed the break even will be maintained through sponsorships.  Regular sponsorships are must for a fair profit that can be used for rainy days.  Early three promotions will be free and rest on charges will be levied as per Rs. 3 per paper.  Estimated 2000 papers may sell based on popularity and hence would fetch Rs. 6000 per publish.
  15. 15. Future Aspects  Creating subscription techniques to maintain flow and the count of publishing copies as well as avoid wastage.  Going inter institute level and spreading towards complete Nirma University.  Create efficient groups and leaders and create future teams in order to continue the legacy.
  16. 16. Sponsorship Brochures
  17. 17. Summary  Apart for permissions and certain formalities as well as signatures, the project is complete.  Delayed due to many consequences but the plan will take action soon.
  18. 18. Thank You This is a true B-Plan and real life based.