Magazine Business Plan Template
If you want to start a Magazine business or expand your current Magazine business, you need a business plan.
The following Magazine business plan template gives you the key elements to include in a winning Magazine business plan.
Sample Magazine Business Plan Template
Below is a magazine business plan example with each of the key sections to help you write a magazine business plan for your own company.
I. Executive Summary
Business Overview
[Company Name] is a new magazine publishing and distribution company based in [insert location here] that focuses on providing News and Entertainment magazines. The Company’s state-of-the-art in-house printing press is located in the heart of the business district of [location]. The Company will distribute its monthly print magazine to key cities throughout the United States and the magazine’s digital version via its online platform. The Company aims to become the leading regional brand in the magazine publishing industry.
Products Served
[Company Name] will provide the following products and services to its customers:
- Distribution of News and Entertainment magazines
- Online subscription for the company’s e-magazine
- Advertising services
Customer Focus
[Company Name] will serve customers in the [US Region], and across the United States. The Company will primarily offer its products and services to consumers between the ages of 18 and 50.
Management Team
[Company Name] is led by [Founder’s Name], who has been in the magazine publishing industry for [x] years. He is a results-driven strategist who relishes challenges and opportunities to deliver ground-breaking solutions. While [Founder] has never run a magazine himself, he has robust experience in print journalism, having worked for over [x] years with some of the leading magazine publishing companies in the United States. He will also have the help and support of his business partner, [Insert Name], who will handle the marketing and admin tasks for the company.
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There is a high demand for agile and hyper-current entertainment and informational media. [Founder’s Name] is well-known in journalism circles for his keen eye for and rapid adaptation to current trends. He has a loyal and growing digital following. A recent survey of this market received enthusiastic feedback pointing towards an explicit demand for print editions of his publications.
- The management team has a track record of success in the magazine business.
- A number of prominent advertisers have indicated intent to purchase advertising space once the magazine launches.
Financial Highlights
[Company Name] is currently seeking $370,000 to launch its magazine publishing company. Specifically, these funds will be used as follows:
- Design and build-out: $170,000
- Working capital: $200,000 to pay for marketing, salaries, and equipment and supplies until [Company Name] reaches break-even.
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name], located in [insert location here], is a new magazine publishing company based in [insert location here] that focuses on providing News and Entertainment magazines. The Company’s state-of-the-art in-house printing press is located in the heart of the business district of [location]. The Company will distribute its monthly print magazine to key cities throughout the United States and its digital version via its online platform. The Company will offer world-class content that will compete favorably with the leading brands in the magazine industry.
The Company’s primary service includes the distribution of News and Entertainment magazines to select newsstands and bookshops located throughout the [US region], online subscriptions for magazine’s digital version, and advertising services.
[Company Name]’s History
[Founder’s Name] is an award-winning journalist who has been in the magazine publishing industry for [x] years. His robust experience in journalism and his eye for developing trends will drive the publication’s success. [Company Name] will become a well-known magazine, offering entertaining reading experiences.
Upon surveying the customer base and finding a potential headquarters, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
[Founder’s Name] has selected a location and is currently undergoing due diligence on the property and the local market to assess the most desirable location for the magazine printing press.
Since incorporation, the company has achieved the following milestones:
- Found location and signed Letter of Intent to lease it
- Developed the company’s name, logo, and website
- Determined equipment and inventory requirements
- Began recruiting key employees with experience in the magazine publishing industry.
[Company Name]’s Products/Services
[Company Name] will provide the following products and services to its customers:
- Distribution of News and Entertainment magazines
- Online subscription for the company’s e-magazine
- Advertising services
III. Industry Analysis
[Company Name] competes against small regional magazines and major national publications. The market size of global magazine publishing industry is $70 billion. The global magazine publishing market is anticipated to encounter stagnation in developed regions and rapid growth in developing economies. Mobile technology is one of the most crucial developments ensuring favorable reader behavior and adoption. Besides novelties in digital printing, penetration of highly agile ads with extensive interactive value are poised to further expedite rapid adoption, thereby influencing favorable growth in magazine publishing.
The global digital magazine publishing market is expected to reach $4.6 billion over the next five years and grow at a CAGR of 5.3%. The global digital magazine publishing market will be driven by factors such as changing reading habits and new media consumption patterns, increase in focus on customer experience through content curation and personalization features offered by publishers, the rapid development of mobile internet access across developing economies coupled with high adoption of digital media and increasing disposable income. The North American region is expected to be the largest market for Digital Magazine Publishing during the forecast period.
The US magazine publishing industry includes about 4,000 establishments with combined annual revenue of about $22 billion. The digital magazine publishing revenue in the US will continue to grow and is expected to reach $1.8 billion in the next five years. Although printed magazines remain the more favorable option for most US consumers, some of the leading magazines in the US also enjoy tens of millions of unique mobile visitors per month.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will primarily serve consumers throughout the US who are between the ages of 18 and 50.
The precise demographics of individuals living in the U.S. are as follows:
| United States | |
|---|---|
| Total Population | 312,796,426 |
| Population Male | 49.00% |
| Population Female | 51.00% |
| Median Age | 37.5 |
| Target Population by Age | |
| Age 18 to 24 | 9.99% |
| Age 25 to 34 | 13.08% |
| Age 35 to 44 | 12.94% |
| Age 45 to 54 | 14.64% |
| Age 55 to 64 | 12.43% |
| Median Household Income | $57,639 |
| Households w/disposable income | |
| Income $50,000 to $74,999 | 18.03% |
| Income $75,000 to $99,999 | 12.97% |
| Income $100,000 to $124,999 | 8.65% |
| Income $125,000 to $149,999 | 5.40% |
| Income $150,000 to $199,999 | 5.12% |
| Income $200,000 and Over | 5.34% |
Customer Segmentation
The Company will primarily target the following customer segments:
- Young Adults: The first target group consists of consumers who are between 18 and 25 years of age. While this group mostly consists of college or university students who like to read free content, the group increasingly subscribes to digital editions of their favorite publications. According to a recent survey by Statista, young adults read more magazines than any other age group in the United States, which is why this group will be the biggest contributor in the magazine’s sales.
- Affluent Consumers: The second target group is composed of affluent consumers who are interested in hobbies and leisure activities such as wine and travel, and are more likely to pay a premium for high-quality print editions.
- One-time purchasers: The Company will place magazines at newsstands and airports in order to target consumers who do not maintain a subscription, but who are interested in the current edition of the magazine.
- Companies: The magazine will offer ad space to various companies and businesses located across the United States.
V. Competitive Analysis
Direct & Indirect Competitors
Competitor 1
Competitor 1 is a leading pop culture resource covering entertainment, style, beauty, and healthy lifestyle, all through the lens of celebrity—the media brand’s unparalleled access results in breaking celebrity stories with credibility and authority in real-time. The brand boasts nearly xx million in audience across its multi-platform portfolio, including a top xx position among all magazines and one of the top-ranking websites for entertainment and celebrity news with xx million unique visitors.
Competitor 2
Competitor 2 is a national weekly magazine that offers a signature mix of reporting and commentary on politics, foreign affairs, business, technology, popular culture, and the arts, along with humor, fiction, poetry, and cartoons. Founded in [year], Competitor 2 publishes the best writers of its time and has received more National Magazine Awards than any other magazine for its groundbreaking reporting, authoritative analysis, and creative inspiration. Competitor 2 takes readers beyond the weekly print magazine with the web, mobile, tablet, social media, and signature events.
Competitor 3
For more than xx years, Competitor 3 has been the premier men’s magazine, providing definitive coverage of style and culture. With its unique and powerful design, work from the finest photographers, and a stable of award-winning writers, Competitor 3 reaches millions of leading men each month. The only publication that speaks to all sides of the male equation, Competitor 3 is simply sharper and smarter.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Management: The management team has [x] years of experience in magazine publishing that allows them to serve customers in a more sophisticated manner than the competitors.
- Relationships: Having lived in the community for xx years, [Founder’s Name] knows all the local leaders, media, and other influencers. Furthermore, he will be able to draw from his existing personal and professional relationships to grow his client base.
- Great product at an affordable price: The magazine published by [Company Name] offers many of the same features as [Competitor Name]. However, [Company Name] will offer its magazine at a much more affordable price.
VI. Marketing Plan
The [Company Name] Brand
[Company name] wants to establish itself as a well-recognized competitor in the magazine publishing industry. Customers can expect to receive high-quality magazines with compelling content, either in printed or digital form at a moderate price point.
The [Company Name] brand will focus on the company’s unique value proposition:
- Offering an on-trend magazine for readers
- Reader-focused content
- Moderate price point
Promotions Strategy
[Company Name] expects its target market to be young adults, affluent consumers, and businesses. The Company’s promotions strategy to reach the audience includes:
Pre-Opening Events
Before opening, [Company Name] will organize pre-opening events designed for prospective customers, local merchants, and press contacts. These events will create buzz, and awareness for [Company Name] in the area.
Advertisement
Advertisements in major social media networks and relevant blogs are an excellent way for magazines to connect with their audience. The Company will also advertise its products in popular newspapers, and relevant placements in industry journals will help in increasing brand visibility.
Local Publications
[Company name] will announce its launch several weeks in advance through publicity pieces in local newspapers and publications. It will run regular advertisements to maintain exposure to relevant markets. Community and regional publications, college publications, and similar channels will be a major promotion effort.
Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content and post reviews that will increase audience awareness and loyalty. Engaging with prospective customers on social media platforms like Facebook, Instagram, Twitter, and LinkedIn will also help understand changing customer needs.
Word of Mouth Marketing
[Company name] will encourage word-of-mouth marketing from loyal and satisfied customers. The Company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers. The Company will incentivize its existing customer base to encourage their friends to purchase a subscription.
Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn from the inevitable loss of customers each year. The Company will introduce special offers to attract new consumers and encourage repeat purchases.
Pricing Strategy
[Company Name]’s pricing will be moderate, so that customers feel they receive great value when purchasing [Company Name]’s magazines, either in printed or digital form. The customers can expect to receive magazines with highly engaging content at a more affordable price than what they pay for an ultra-premium magazine.
VII. Operations Plan
Functional Roles
[Company name] will publish its print magazine on a monthly basis. Its digital magazine will be updated on a daily basis. The majority of employees will be involved in the creative process and production.
To execute on [Company Name]’s business model, the company needs to perform several functions, including the following:
Service Functions
- Photographers
- Journalists
- Printers
- Software / website specialists
- Marketing
- Sales manager
Administrative Functions
- General & administrative functions including legal, bookkeeping, etc.
- Customer service
- Hiring and training staff
Milestones
[Company Name] expects to achieve the following milestones in the following [] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name], who has been in the magazine publishing industry for [x] years. He is a results-driven strategist who relishes challenges and opportunities to deliver ground-breaking solutions. While [Founder] has never run a magazine himself, he has robust experience in print journalism, having worked for over [x] years with some of the leading magazine publishing companies in the United States. As such, [Founder] has an in-depth knowledge of the magazine publishing and distribution business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
[Founder] graduated from the University of ABC, where he majored in Journalism.
Hiring Plan
[Founder] will serve as the CEO. In order to launch the magazine publishing and distribution business, the company will need to hire the following personnel:
- Editor-in-Chief
- Journalist / Content Creators / Photo Journalist
- Graphic Artist
- Sales and Marketing Manager
- Accountant
- Printing Press Workers (Printing Machine Operators)
- Customer Service Manager
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the sales of magazines and online subscriptions. The major costs for the company will be staff salaries, the build out of the magazine printing facility, and printing equipment and supplies. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $370,000 to launch its magazine publishing and distribution company. Specifically, these funds will be used as follows:
- Design and build-out: $170,000
- Working capital: $200,000 to pay for marketing, salaries, and equipment and supplies until [Company Name] reaches break-even.
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | |
|---|---|
| FY 1 | 75 |
| FY 2 | 100 |
| FY 3 | 125 |
| FY 4 | 150 |
| FY 5 | 175 |
| Annual Lease (per location) | $50,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
