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Business Plan on Magazine

Business Plan on Magazine

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National University of Modern Languages

Business Plan of iProfile Magazine

Submitted By Muhammad Yousaf Sumitted to
Sir Jawad

Iprofile is a business magazine that will provide industry specific services and feasibilities in the form of written articles. Muhammad Yousaf is the founder and the sole owner of the company. Yousaf Publishing Inc. will produce industry related articles for the benefit of the society so that the customers could have the knowledge of their local industry. Some of the articles will be Companies product reviews. Through consistent criteria-based measurements, iProfile will be able to offer objective product testing. It will also give the feasibility report of the companies’ such that new person willing to invest in the industry could come to know the pros and cons. It was just several years ago when the only source of information about a specific company was either from the company’s annual report or by interviewing the company’s personnel itself. With the proliferation of the Internet, it has become an extreme need of the market to make the magazine available online. There are many different Industry specific sites that act as online magazines. Some are Government owned and some private. iProfile will sell its magazine on internet as well as physically in the market. Yousaf Publishing Inc. also market books via direct marketing and through established distribution channels, now it has decided to jump in the magazine business as it is also lucrative. Publishing is a high profit and high margin business. The key to success is successful marketing. The group has a highly focused multi-dimensional sales and marketing plan to build its total circulation base quickly. Estimated sales for the first three years are.

Mission
iProfile’s mission is to produce well written articles about the industry and to make the society knowledgeable of their local industry. By leveraging extensive network of colleagues within the industry, Iprofile is able to offer a rare insight of the industry.

Keys to Success
The keys to success are:
   

Attaining targeted circulation levels. Attaining targeted advertising sales revenues. Having quality editorial content in each issue. Making all production and distribution dates in a timely fashion for each issue.

Objectives
  

Continue to develop and maintain a network of contacts within the local industry. Making the society knowledgeable about their local industry. It will help business students in their education, new entrepreneurs before starting new business and potential investors investing in company’s shares. To create a profitable business.

Company Location
The Yousaf Publishing, Inc. has current offices at Peshawar road Rawalpindi. The phone # is 051-XXXXXXX and the fax # is XXXXXXX. The office is fully equipped and functional. The publication of the “iProfile” magazine will also take place in this office. All business, management and editorial functions will be performed here. All printing and distribution will be outsourced.

Customers it Will Serve
In the beginning it will serve only the Rawalpindi and Islamabad customers after 1 it will spread through regional areas and then at national level. It will cover various topics which will benefit business community, Islamabad stock exchange, members of different chambers of commerce and industry, government officials, professionals, bankers and specially business students.

Legal Form of the Company
Muhammad Yousaf will be the sole owner of the business.

Physical Description
The magazine is high gloss, 90 pages, contemporary in look and appeal. Quality business content is the constant goal. The magazine will be informative and practically useful. The page size of the magazine will be A4.On the back side of the magazine there will be a full page advertisement. No magazine like it is available today. iProfile means INDUSTRY PROFILE The logo of the magazine will be

A Statement Regarding Use and Appeal
The following article types are representative of the content that Iprofile will produce:

Industry personnel interviews: These interviews are generally based on networking contacts and through references. The interviews can take place in person, on the phone, or via email. The topic of the interview will be the history, how the business gets started, what were the initial hurdles and future growth of business etc. Feasibility Report: . It will also give the feasibility report of the companies’ such that new person willing to invest in the industry could come to know the pros and cons. Product reviews: These are reviews of new products of the companies which have recently hit the market. Iprofile will apply an objective, criteria-based system for evaluating products.

Trade show reports: Almost every month trade shows are held such as Industrial Expo, Sanaty Namaish etc. These articles will be reviews of the "happenings" at the trade show. A large component of the trade show articles are preview photos of the up-andcoming new products. Current Market Stories: To make the customers up to date one segment will provide the customers with current happenings in the industry. Global View: Will discuss the global economic conditions. Website: Iprofile will also maintain a website for the industry stake holders so that they can make their comments and suggestions and the articles and the industry.

 

Statement Regarding Stage of Development
The magazine has been designed and its one sample has been made and is now currently waiting for approval for its business plan. Once the approval has been made by the concerned authorities, the decision has to be made for its successful implementation. Basically the business is in pipeline waiting for the final decision.

Yousaf Publishing Inc. has successfully research the marketing data and compiled it successfully for future needs. The company knows that the marketing analysis is essential and pivotal for the company‘s success. For this reason the company has analyzed the marketing data so that it can use these data to their own advantage and to get aware of the competitors strategies. The following are some of the most important issues to address in the marketing analysis section.

Market Oppurtunity
No other magazine in the market is targeting the segment which iProfile is targeting. Its main purpose is to educate the society of their local industry and thus earning profit. In the beginning it will serve only the Rawalpindi and Islamabad customers after 1 it will spread through regional areas and then at national level. By this magazine especially the need of the business students will be met. For eg in their university level education the students have no source of information of their local businesses, they are unable to do analysis and practical work. This magazine will strengthen, deepens and promotes analytical way of thinking in the minds of people. iProfile will treat its readers as active , involved citizens rather than passive, isolated customers. It will be content and subscriber-driven, rather than advertising-driven.

It will cover various topics which will benefit business community, Islamabad stock exchange, members of different chambers of commerce and industry, government officials, professionals, bankers etc. It will also be useful for the industrialist’s itself as they will come to know about their competitors. As there is no other competitor so there is a large a profitable market for this business.

Competition
Market Analysis Summary Business magazines in the market are both issued weekly and monthly. Some of the publications have a large staff of writers and only use a small percentage of articles from

outside writers; other companies rely heavily on outside, freelance writers. iProfile will produce 95% of its articles from its highly capable professional permanent staff and will take only 5% articles from freelancers. The business magazine market is segmented into two broad categories, print and online magazines. According to the iProfile’s analysts, the speculative percentage of readership of business print magazine is 70% and online business magazines are 30%. Due to increase of internet in the country the online readership has high growth rate. This is why Iprofile has developed its own website. Print Magazine These magazines are almost exclusively printed on glossy paper, magazine formatted and bound, have national circulation readership levels, and have a staff of writers. However, they also contract freelance. Generally the freelance work is on requested topics. Examples include:

Pakistan & Gulf Economist

It is the leading weekly financial magazine of the country for the last 30 years. It is read widely both nationally and internationally for its coverage of various topics and investigative reporting by the business community, members of the Karachi, Lahore and Islamabad stock exchanges, members of different chambers of commerce and industry, governments officials, professionals, bankers, students and is also subscribed by major libraries around the world

Business recorder

Business Recorder is the oldest financial daily in Pakistan and the first such publication to be published in the Muslim world. The publication is owned by the Business Recorder Group which is one of South Asia's preeminent media conglomerates with interests in Television, Web, Finance and Technology. Business Recorder was established on 17 February, 1965 by veteran journalist M.A. Zuberi who is still the publication's Editor In Chief. International Magazines      Forbes Business Week Industry Week Economist Fortune 100

Online magazines/Websites With the recent explosion of popularity and use rates of the Internet, there have been a number of different websites that offer industry specific content. The advantages of the online sites are their ability to have far more current content as well as a much larger geographic coverage. Some of the sites offer paid content; however, the majority of them offer free content with the bulk of their revenue coming from advertisers on the site. Some of the online sites are extensions of a printed magazine, others are solely Internet based. Examples include:
    

www.secp.gov.pk www.apnapakistan.com www.kalsoft.com www.yellowpages.com www.financialtimes.com

Industry Profile
Geographical Locations Magazines are located all over the country. With technology, production and circulation can be accomplished from anywhere. With the proliferation of internet the geographical boundaries have been eliminated now one can writ article in Islamabad and publish at Karachi. Industry Trends Analysts predicts that magazines have a smaller share of the total number of consumer hours spent on media because of the increased use of electronic media during leisure hours. It is estimated that the market share of the electronic media will in coming years. The publishers are combating this decline in several ways so that magazines have “thrived despite the proliferation of other media”. Stronger sales efforts, better customer service, improved market research are just some avenues of attack. Larger publishers have extended their franchises with coordinated TV programming and marketing, such as CNBC Pakistan and Economist. iProfile will pursue some of these avenues as well, striving to become “must reading” for influencers and decision makers across the country. Profit Characteristics Traditional magazines publishers rely on two strams of revenue. One is generated by circulation, the other by advertising. The blend of these two streams is generally unique to each entity, and in analyzing the health of a publishing enterprise the reaction of each to current market conditions must be taken into account.

Marketing & Promotion Strategy
Iprofile has chosen to target both printed and online magazines. These target customers have been chosen because of their need for articles. While some of the magazines have less of a demand for freelance writers, all magazines at some level require freelance writers. Freelance writers are an effective means for managing money, a scarce resource for magazines. Freelance writers present a level of flexibility that most staff writers, as a function of the business organization, cannot meet. Additionally, the demand for articles occurs somewhat regularly, generally at monthly or bi-monthly intervals. In addition to advertising, direct mail, and media executions, public relations exposure will benefit magazine circulation significantly. iProfile will also participate in trade shows to

promote its product. Initially it will create awareness by hand bills which are a cheap source of promotion.

Sales Forecast

This sales forecast has been mentioned monthly wise. We will be starting our business in April of 2010. Our first month magazines sold will amount Rs 75,000.

Our first year sales will be Rs 15,00,00 and second year rose by Rs,200,000 and so on.

Pricing Strategy and Plan
Iprofile must look at several pricing issues related both to circulation and advertising. Circulation pricing must be not only affordable, but also commensurate with the image the magazine projects or the expectation of that image by the reader. Circulation Pricing The "Iprofile " magazine will sell for Rs 250per single issue on the newsstand. 1. A one-year subscription is Rs 2500. 2. A two year subscription is 5000. Advertising Pricing SIZE 2-page Full ½ Back Cover Inside Front Page Inside Back Page Center Spread 1X 40000 25000 19000 60000 55000 50000 60000 3X 36000 22000 17000 57000 53000 47000 57000 6X 32000 20000 14999 55000 50000 45000 55000

Distribution Strategy
Commercial magazines are traditionally distributed through the mail or by single-copy on newsstands. Iprofile plans to distribute across the country primarily through the postal service to subscribers. By making its own arrangements for distribution, Iprofile avoid the headaches and cost of dealing with national distributors. Such distributors usually require a 50% return on the cover price. To distribute the magazine in the book stores Iprofile will outsource.

The drawbacks to being our own distributor include   Increasing our in-house paperwork by tracking invoices, payments. Being limited by time and personnel in our ability to make new contacts for additional outlets

The advantages are that   Iprofile controls where its title is seen and Iprofile can build relationships with people who run the distribution outlets.

Product Development
As iProfile is a monthly magazine so 30 days are divided such efficiently that on the 1 st of every month the magazine reaches the customer on time. The schedule of tasks would be 1. iProfile’s analysts will take interviews and collect other data till 20th of every month. 2. On 25th the writing of article will be completed and will be sent to the printing department. 3. Printing will be completed on 28th and in two remaining days the magazine will be delivered to the customers through postal orders or other means of distribution discussed afterwards.

Manufacturing
Editorial, writing and design work are accomplished by in-house staff supplemented by freelance contractors. The actual physical production of the magazine is done by a printing house under a contractual agreement.

Planning Chart
If the approval of the magazine is made by the concerned authorities then the first magazine will be publish in the month of June 2010. The planning of the upcoming issues of iProfile magazine is

June 2010

Cover: Fast Food and Restaurants Feature 1: Secret of Fast Food Feature 2: Growth of Fast Food in Pakistan Feature 3: Why Invest in Fast Food Cover: Colleges and Universities Feature 1: Interviews of Principals Feature 2: Comparison of Quality education and Fees Feature 3: Is this business profitable and manageable Cover: Garments Industry Feature 1: Review of Industry Feature 2: How garment is made? Feature 3: Who are market leaders? Feature 4: Cover: Housing Societies Feature 1: Feature 2:

July 2010

August 2010

September 2010

Administrative Policies, Procedures and Control
Receiving Orders Circulation Most requests for subscriptions will arrive in the mail. The current process for receiving orders is for the Circulation Manager (Ahmed) to collect the mail, open the envelopes, record the subscriber’s name, address and other information in the Access Database, prepare the checks for deposits, and deposit them. The subscriber list is currently being held on MS Access Database.

Advertising Advertising orders are usually received via e-mail or over the phone. Mansoor, the advertising director, receives these orders and record the size, frequency and the amount agreed upon between him and the advertiser. The Editor or the other members may also receive advertising space orders, but they all must be confirmed through the Advertising director who is responsible for record keeping. Billing the Customers Single Sales Copy Bookstores that carry single copies of the magazine are billed at the time of shipment. The cover price of the magazine is Rs 250 and the bookseller will get the magazine at Rs 220. By the end of the month the bookseller will have to return unsold copies. Advertisers Advertisers are billed by invoice, generated by the Business manager on consultation with the Advertising Director. The business manager receives the payments, posts them, deposits the funds and pays the Advertising director her commission from the proceeds. Paying the Suppliers Freelance artists and writers as well as press i.e. Master Press are paid by the Business mangers. The Editor provides a list of freelance writers for payment. Writers and artists are paid on acceptance of the work.

Support, Handling Warranties and Returns
A subscriber may cancel his subscription at any time, but no refund will be made available in such cases. If the subscriber would like to donate his subscription to another person or entity(school, library for example), this can be accomplished at no extra charge. An Advertiser may not receive a refund on paid advertising because the payment is usually not required until after the ad has appeared in the magazine.

Management Talent and Skills
Muhammad Yousaf: Founder, Chairman & CEO Salman: 5 years’ experience in Islamabad Chambers of Commerce and Industry and MS degree Ahmed: 2 Years’ experience in Multinational firm working as a financial manager. Shaheryar: Professor at Quaid-e-Azam University. Mansoor: Worked as a Marketing Agent in Spider magazine Haris: 3 Years prior experience of marketing and promotion in multinational firm.

Organizational Chart

Policy and Strategy for Employees
    As it is sole proprietor business so the will receive a salary plus commission employees cant be given any reward in the form of shares etc. Health benefits will be provided to the employees It will be made ensure that employees are working in safe and friendly environment. The advertising managers works on a 15% commission for ads he sells. If someone else sells the ad he receives a 5% commission for servicing that ad. She will receive a salary plus commission for this position as the company grows. The employees will be rewarded on their annual performance.

Company Ownership
Muhammad Yousaf will be the sole owner of the company.

iProfile Business Magazine Balance Sheet
Assets Liabilitities & Equity

Furniture

50,000

Shortterm Liability

700,000

Prepaid Rent

360,000

Longterm Liability

310,000

A/C (Split)

100,000

Computer

200,000

Generator

200,000

Others

100,000

1010,000

1010,000

Analysis of Balance Sheet
At the start of the business on April 2010 we will purchase the following assets such as Furniture, computers and Generators etc. Furniture will cost us Rs 50,000. Prepaid rent is the amount which we have paid in advance to the owner of the building and thus it is assets. Monthly rent is Rs 30,000. The yearly rent will be 30,000*12=360,000. A/C, Generator and Compuers are the startup expenses which will commulatively amount to Rs 500,000. For the First year Pro Forma Balance Sheet amount will be 10,10,000. On the liabilities and owner euity side our shorterm debts will amount to Rs 700,000 and Longterm debts to Rs 310,000, thus balancing the balance sheet at Rs 10,10,000.

iProfile Business Magazine Income Statement
Revenues (less) Expenses Salaries Legal Fee Electricity Bill Telephone Bill Gas Bill Water Bill Internet Bill Advertising Expense Stationary Expense 300,000 60,000 25,20,000 10,000 120,000 24000 24000 12000 52,42,500

Net Income

21,22,500

Analysis of Income Statement
Our first year total revenues will amount to Rs 52,42,500. The source of revenues are two, one from magazine’s price and the other from the advertisement we gain. The selling price of magazine is Rs 250. Monthly wise we will gain revene in first year on selling price is 250* 300+400+450+500+525+540+550+575+600+700+710+720=16,42,500. The first year revenue from advertisement will be 36,00,000. Thus commulative revenue is 52,42,500. As salaries are the highest running expense in the magazine publishing business so it has amount to almost 50% of the revenue. So first year net income is Rs 21,22,500.

iProfile Business Magazine Cash Flow Statement
Periods (Months) 0 1 2 3 4 5 6 Outflow 41,30,000 31,20,000 32,20,000 20,00,000 21,00,000 23,00,000 … Inflow 3,75,000 800,000 1500,000 14,00,000 170,00,000 25,00,000 …

Analysis of Cash Flow Statement
At period 0 the outflows are those outflows which will be startup business outflows. The amount 4130,000 has come from two things, from acquiring assets and initial expenses. Our Inflows will meet our outflows at the 5th month of starting the business.

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