Start Up Business - Local Advertiser Magazine

Mondo14

Hi People

I would like to get some thoughts & advice, preferable from anyone with experience in this area. I have been thinking of starting a local monthly magazine which primarily will feature ads from local business. It would be distributed to local shops etc and be free to the public. I am at the research stage just at the moment, finding out everything I need to know before I persue this venture.
I have got a qoute from a printers based on 2,000 copies and have an idea how many ads I would need to sell to cover printing costs. I also got a price for to do a mock up of the magazine to show potential advertisers so they can see exactly how it will look, sizes & price of each ad. Problem is, I have little funds to start off so I would be basically trying to sell enough ads to cover cost of a first issue before I could go to print. The cost of the ads would be less than the local newspapers so should I offer them a discount in order to secure their advertisement maybe for first 2 or 3 issues? I would think if i didnt do this, I might find it hard to get a secound issue out and if i could start off selling it this way, i thought it might give the magazine more chance when it would have at least 2 or 3 issues to start with and could start attracting more advertisers in that time.

I also think i should include some local articles, news from sports clubs etc to engage readers.
Ive seen this same type of magazine work very well in another county and think It could work in my area too.

Any advice & questions greatly apreciated

Gloomtastic!

You've thought your cashflow through which is good. Your advertisers will want to pay you on 60-90 days, your suppliers will want you to pay in 30 days - if they give you credit at all. No sane printer is going to expose themselves to 90 days of debt to a new publishing company.

You will need to raise finance from somewhere, publishing is a very expensive business to be in and trying to survive one issue, let alone two or three is going to test you to the very limit.

Print is just one cost, what about content and compilation costs? Have you costed in distribution from the printer to the reader? Staff costs, legal and accounts costs, office overheads? The list is endless.

Advertising budgets don't get made up on the spot. Companies will have budgets planned out a year in advance and if a new entrant to the market comes along looking for their money, they will have to take it from someone else. Why should they give it to you as opposed to their current ad medium?

I hate pissing on peoples' fireworks, but everytime a poster, like yourself, comes on here wanting to launch a newspaper or magazine, my advise is to just burn any cash you have instead - at least you won't be getting into further debt.

My background? I launched a magazine 20 years ago, with two other colleagues, after many years working together in publishing - we were the perfect team. We had £60k behind us when we launched but that soon disappeared. The magazine is still going, and very, very successful but the first seven years, when I got out, were pure hell, an experience I wouldn't wish on anyone.

jimmii

Hard to add anything to that really! As it reaches deadline day everything month we always get calls from large national publications offering knock down adverts it seems its a pretty tough sell these days for the people selling print adverts. If its something you really want to go then great but I think it would be very naive to look to make any money out of it most of the similar titles you see seem to be produced by a group that are looking to use it as a tool whether it be a local community group, business group or church and they aren't really looking to turn a profit from it just spread their message. What you could do is approach a large local business and see if you can convince them to sign up for a few editions and offer them a load of coverage. It would also make it easier to get other companies on board if they know a local major player is already in.

lucky john

http://www.advertiser.ie/mullingar

This is the website for the free advertiser in Mullingar. It will give you an idea of what you need to produce and the quality businesses and readers would expect from your paper.

Mondo14

Thanks for your comments, much appreciated. It would be a full colour glossy magazine, nothing like the free newspapers you get from the advertiser type groups. Also As regards articles, i would only want good news ones in it and not the usual doom and gloom in others. To answer a question, I have sourced a printers who deliver to me for free so its just the printing costs needed for them.

I do think there is a niche in the market here so I think i should continue to research further. Do you think it would be a good idea to do some market research? Contact all the local business I can and see would they be interested in this?

Gloomtastic!

Mondo14 wrote: »

Thanks for your comments, much appreciated. It would be a full colour glossy magazine, nothing like the free newspapers you get from the advertiser type groups. Also As regards articles, i would only want good news ones in it and not the usual doom and gloom in others. To answer a question, I have sourced a printers who deliver to me for free so its just the printing costs needed for them.

I do think there is a niche in the market here so I think i should continue to research further. Do you think it would be a good idea to do some market research? Contact all the local business I can and see would they be interested in this?

Full colour, more cost - more ink, better quality paper, longer print time.

How are you going to get your magazine to the reader? By post, by dropping it in their letterbox or magazine dumps (what the display stands are called) in shops/business? All are going to cost you....

jimmii

I think we just have too small a market to be able to offer a top class fremium product similar to the ones that are common place in London we just don't have the numbers to build the circulation enough to make it sustainable.

Do you have a customer you are aiming at or are you aiming it at everyone?

Mondo14

Gloomtastic! wrote: »

Full colour, more cost - more ink, better quality paper, longer print time.

How are you going to get your magazine to the reader? By post, by dropping it in their letterbox or magazine dumps (what the display stands are called) in shops/business? All are going to cost you....

Ive already got a price from the printer for full colour magazine so it is possible to do if i could get enough business to advertise. I distribute the magazine to all local shops, hotels etc. The costs incurred from that would be basically travel expenses. Ive already done my homework so every shop, fastfood outlet, waiting areas etc would have copies of the magazine each month.

Mondo14

I think the best thing to do is contact as many businesses as possible and pitch my idea to them and see if there really is a market for this as. The magazine would be free to public, available monthly in every shop in the area and surround villages. The cost of advertising would be a lot cheaper than the local papers also and in terms of quality, its would be a lot more attractive looking than an ordinary free newspaper.

Mondo14

jimmii wrote: »

I think we just have too small a market to be able to offer a top class fremium product similar to the ones that are common place in London we just don't have the numbers to build the circulation enough to make it sustainable.

Do you have a customer you are aiming at or are you aiming it at everyone?

It would just be distributed around 1 county, not at a national level if thats what you mean.

jimmii

Mondo14 wrote: »

It would just be distributed around 1 county, not at a national level if thats what you mean.

Are you targeting everyone in the county or is there a particular age group/interest group etc you are aiming for? The more specific your target audience is the more advertisers are willing to pay to reach them.

jimmii

Mondo14 wrote: »

I think the best thing to do is contact as many businesses as possible and pitch my idea to them and see if there really is a market for this as. The magazine would be free to public, available monthly in every shop in the area and surround villages. The cost of advertising would be a lot cheaper than the local papers also and in terms of quality, its would be a lot more attractive looking than an ordinary free newspaper.

Definitely go in you might even get a couple of people to sign up there and then! Take in whatever you can afford to drop in even if its just print outs if you can afford to buy a coffee for them then do that! It might only cost €2 but it makes a good impression!

Mondo14

jimmii wrote: »

Definitely go in you might even get a couple of people to sign up there and then! Take in whatever you can afford to drop in even if its just print outs if you can afford to buy a coffee for them then do that! It might only cost €2 but it makes a good impression!

Yes I think I will just contact as many as I can and see what feedback I will get. Seems like safest option to me

jimmii

Mondo14 wrote: »

Yes I think I will just contact as many as I can and see what feedback I will get. Seems like safest option to me

Just make sure you know your numbers inside out its very annoying when people approach us but have no idea of the numbers we want to know.

Mondo14

jimmii wrote: »

Just make sure you know your numbers inside out its very annoying when people approach us but have no idea of the numbers we want to know.

Yes I agree totally. This is why Im doing my homework so if and when the time comes that I approach potential advertisers I can provide all the info possible to them. Just have to do a bit more market research now before I can think of getting to that stage.

dublinwp

I will add my 2c

I have experience in this. I can tell you that it will be a tough sell, second year because advertisers wont see response to their adds and you have only limited supply of advertisers in certain area. Think of other ways to monetise it and have a backup plan.

Atomico

Who is going to write / produce the content for the magazine itself, and how much is that going to cost you...?

Mondo14

Atomico wrote: »

Who is going to write / produce the content for the magazine itself, and how much is that going to cost you...?

I have the print & design already priced

Atomico

Mondo14 wrote: »

I have the print & design already priced

Print and design is not content

I mean the articles in the magazine - news, features, editorial and so on.

Mondo14

Atomico wrote: »

Print and design is not content

I mean the articles in the magazine - news, features, editorial and so on.

Articles would be done by myself including features. Its aimed primarily at advertising so there wont be much editorial, local sport news etc.

Atomico

Mondo14 wrote: »

Articles would be done by myself including features. Its aimed primarily at advertising so there wont be much editorial, local sport news etc.

Just seeing that you said it will be a monthly magazine so that should be doable so. You would want to have a decent amount of news and features though, to get people reading it (as you know already I'm sure).

househero

Mondo14 wrote: »

Articles would be done by myself including features. Its aimed primarily at advertising so there wont be much editorial, local sport news etc.

Why would anybody read it?

You want to reproduce the crap that cones through my letterbox and goes straight into the bin.

You might get some equally naive Small businesses to sign up (until they ditch you due to a terrible return on investment) but anybody who has a brain or works for a decent sized company will know that your publication will go mostly ignored. They will only pay on a cist o'er impression basis (yes this term predates the internet) and 2000 copies is worth next to nothing... €5 an ad if your lucky.

If you can print full colour glossy and supply ad space for less than newspapers (with significantly larger reach, an established distribution network and loyal readers) you are ignoring the tax implications if your idea.

DO NOT ENTER A SHRINKING MARKET, published media is dying format.

...where do people get these ideas from... O right yea copying an idea over 100 years old. SERIOUSLY???


If you are going yo go ahead with this terrible idea, get it printed in China, it will cost you 5 x less. Alibaba and due diligence will greatly reduce your fees.

Mondo14

househero wrote: »

Why would anybody read it?

You want to reproduce the crap that cones through my letterbox and goes straight into the bin.

You might get some equally naive Small businesses to sign up (until they ditch you due to a terrible return on investment) but anybody who has a brain or works for a decent sized company will know that your publication will go mostly ignored. They will only pay on a cist o'er impression basis (yes this term predates the internet) and 2000 copies is worth next to nothing... €5 an ad if your lucky.

If you can print full colour glossy and supply ad space for less than newspapers (with significantly larger reach, an established distribution network and loyal readers) you are ignoring the tax implications if your idea.

DO NOT ENTER A SHRINKING MARKET, published media is dying format.

...where do people get these ideas from... O right yea copying an idea over 100 years old. SERIOUSLY???


If you are going yo go ahead with this terrible idea, get it printed in China, it will cost you 5 x less. Alibaba and due diligence will greatly reduce your fees.

I have seen your other comments on peoples threads and it mirrors the sort of rubbish you just put here so im thinking that you go online, and from the safety of a laptop screen or phone you become a keyboard warrior. Your also probably the type that doesnt get out much either, not very successful in life thus your attitude which you have reflected here.

As regards my thread, which you obviously know nothing about, there is plenty of local type publications like these that do very well to this day. So you must forgive me for not wanting to listen to your rant about a subject you are no addition to.

Atomico

househero wrote: »

Why would anybody read it?

You want to reproduce the crap that cones through my letterbox and goes straight into the bin.

You might get some equally naive Small businesses to sign up (until they ditch you due to a terrible return on investment) but anybody who has a brain or works for a decent sized company will know that your publication will go mostly ignored. They will only pay on a cist o'er impression basis (yes this term predates the internet) and 2000 copies is worth next to nothing... €5 an ad if your lucky.

If you can print full colour glossy and supply ad space for less than newspapers (with significantly larger reach, an established distribution network and loyal readers) you are ignoring the tax implications if your idea.

DO NOT ENTER A SHRINKING MARKET, published media is dying format.

...where do people get these ideas from... O right yea copying an idea over 100 years old. SERIOUSLY???


If you are going yo go ahead with this terrible idea, get it printed in China, it will cost you 5 x less. Alibaba and due diligence will greatly reduce your fees.

Just a small bit of over the top there? Published and printed media is not a dying format, no matter what the 'experts' might say!

There is a reason the model is 100 years old - people like to read newspapers and magazines. Yes, the internet is eating into margins and readership, but companies are adapting.

It all depends on who the competitors are and whether there is space for another publication.

In my town there is a free newspaper on the go nearly 15 years at this stage and it is full to the brim each week with ads.

Graham

Mondo14 wrote: »

I have seen your other comments on peoples threads and it mirrors the sort of rubbish you just put here so im thinking that you go online, and from the safety of a laptop screen or phone you become a keyboard warrior. Your also probably the type that doesnt get out much either, not very successful in life thus your attitude which you have reflected here.

As regards my thread, which you obviously know nothing about, there is plenty of local type publications like these that do very well to this day. So you must forgive me for not wanting to listen to your rant about a subject you are no addition to.

Did you not start the thread asking for 'thoughts and advice'? Isn't that exactly what you've received?

Mondo14

Graham wrote: »

Did you not start the thread asking for 'thoughts and advice'? Isn't that exactly what you've received?

yes but only from those with experience in the subject. Not that last person that just goes on a rant on every thread he comes across.

SeanSouth

Avoid print media like the plague.

tipptom

Graham wrote: »

Did you not start the thread asking for 'thoughts and advice'? Isn't that exactly what you've received?

Thoughts and advice is fine but that was not what he received,looked more like insults to me,seems like he gets a kick from rubbishing ideas.

pedronomix

tipptom wrote: »

Thoughts and advice is fine but that was not what he received,looked more like insults to me,seems like he gets a kick from rubbishing ideas.

The real problem arises when the idea itself is daft, it is destined to get negative feedback. The theory may be fine but some home produced content free-sheet by a non-journalist with a focus on ads is so perversely naive as to attract the well intentioned ridicule... DONT DO IT!!

This forum has been sliding rapidly in terms of so-called "entrepreneurial" ideas of late... 'tis no wonder the better posters/advisors are gone south!!

Mondo14

pedronomix wrote: »

The real problem arises when the idea itself is daft, it is destined to get negative feedback. The theory may be fine but some home produced content free-sheet by a non-journalist with a focus on ads is so perversely naive as to attract the well intentioned ridicule... DONT DO IT!!

This forum has been sliding rapidly in terms of so-called "entrepreneurial" ideas of late... 'tis no wonder the better posters/advisors are gone south!!

Il know not to take your advice anyway. Just got the first issue out. i know I will have a july, august and september issue out from the block advertising ive got already so its looking good. If you really think the idea is "daft" then why are so many doing it?

Just because things dont work out for in your life doesnt mean others will be the same. Go back to sleep lol

Graham

Mondo14 wrote: »

Il know not to take your advice anyway. Just got the first issue out. i know I will have a july, august and september issue out from the block advertising ive got already so its looking good.

Congrats for getting the first issue out, hopefully enough of the 2000 readers will convert for your advertisers that they'd like to continue advertising. That will be the real test.

Atomico

pedronomix wrote: »

The real problem arises when the idea itself is daft, it is destined to get negative feedback. The theory may be fine but some home produced content free-sheet by a non-journalist with a focus on ads is so perversely naive as to attract the well intentioned ridicule... DONT DO IT!!

This forum has been sliding rapidly in terms of so-called "entrepreneurial" ideas of late... 'tis no wonder the better posters/advisors are gone south!!

Like the OP says, if there are others doing it and clearly making money out of it then there is a market for it - that's basic enough stuff really.

As I said before don't believe the hype - print media may have declined but it is hundreds of years old and most definitely not on the way out.

tipptom

Mondo14 wrote: »

Il know not to take your advice anyway. Just got the first issue out. i know I will have a july, august and september issue out from the block advertising ive got already so its looking good. If you really think the idea is "daft" then why are so many doing it?

Just because things dont work out for in your life doesnt mean others will be the same. Go back to sleep lol

Fair play to you.

jimmii

Mondo14 wrote: »

Il know not to take your advice anyway. Just got the first issue out. i know I will have a july, august and september issue out from the block advertising ive got already so its looking good.

Congrats on getting that issue out and getting some advertisers on board for a few editions fingers crossed it goes well looks like a great start!

pedronomix

Mondo14 wrote: »

Il know not to take your advice anyway. Just got the first issue out. i know I will have a july, august and september issue out from the block advertising ive got already so its looking good. If you really think the idea is "daft" then why are so many doing it?

Just because things dont work out for in your life doesnt mean others will be the same. Go back to sleep lol

Please do post back to let us know how you get on, first week in February 2015 should be a fine test. more than happy to eat my hat!

Gloomtastic!

Three weeks from the idea to the finished product? Sorry, I'm smelling a rat.......

pedroeibar1

Gloomtastic! wrote: »

Three weeks from the idea to the finished product? Sorry, I'm smelling a rat.......

Nah, it could be done in 3 weeks, just look at the quality of the OP's language, grammar and punctuation!

Mondo14

Gloomtastic! wrote: »

Three weeks from the idea to the finished product? Sorry, I'm smelling a rat.......

3 weeks? This idea started for me last year and since then i have been doing my homework.. if you think all the market research I done was posting here then your very much mistaken. If it was that easy sure we all would be millionaires lol

Mondo14

Graham wrote: »

Congrats for getting the first issue out, hopefully enough of the 2000 readers will convert for your advertisers that they'd like to continue advertising. That will be the real test.

Thank you.. baby steps first i think lol

Mondo14

pedronomix wrote: »

Please do post back to let us know how you get on, first week in February 2015 should be a fine

test. more than happy to eat my hat!

Only time will tell but heres hoping youl enjoy the taste of that hat lol

tipptom

Gloomtastic! wrote: »

Three weeks from the idea to the finished product? Sorry, I'm smelling a rat.......

Maybe he could stick up a copy of the front page of the first edition for us to get a gander.

thecommander

Any update on this?

Gloomtastic!

thecommander wrote: »

Any update on this?

I believe Denis O'Brien has bought him out....... :rolleyes:

pedronomix

Better get my hat so!!