Podcast: The Upside of Owning a Publishing Company
July 2nd, 2009
Today’s question is from Michael in Woodstock. Michael wants my opinion about his buying a publishing business.
Listen to the following podcast for the answer…
Or, read the answer here:
In my 38 years of being a business consultant and 23 years of being a business broker, the publishing industry has been my favorite for many reasons. Whether it’s a newspaper, magazine, newsletter, coupon book, Internet website, etc., the benefits during ownership and when you sell are immeasurable.
Let’s start with ego. Can you imagine what it’s like to see your name in print with every issue or on an Internet website visited by thousands of “hits?” It’s like winning an award each and every month with your name engraved on it. Now, how does that make you feel each day that you get up and go to work?
Speaking of going to work, how does a commute down your hallway from your bedroom to your home office sound? I’m sure that not having to fight traffic anymore makes sense on multiple levels. No more wear and tear on the car. No more crawling along in traffic. No more monthly parking expense. No more dealing with nasty days of rain, snow, oppressive heat, high humidity, etc. I’m sure you get the picture.
How about the learning curve when you buy a publishing business? Well, you can either be a writer or a non-writer. If you are a writer, you can contribute to each issue. If you are not a writer, there are many freelance writers continually seeking a venue for their talents. If you are not a proofreader, you can always hire an editor to perform this task.
You may be wondering what on earth you will be doing if all these other tasks are being handled by specialists. Well, one thing is to continually contact printers to be certain you are obtaining competitive prices. Particularly during today’s economy, you should be able to negotiate substantial savings.
Another thing you need to aggressively pursue is the sale of advertising. If your publication is subscription based, advertising is less important. But, if you rely upon advertising to cover fixed and variable costs, the amount of advertising sold will dictate the size and quality content of each issue.
One added bonus that is not readily apparent is the ability to “give away space” for public service, community affairs and most important of all – barter. With regard to public service and community affairs, there are some obvious cases like The American Cancer Society, The American Heart Association, a local youth center, announcements of public meetings, etc. But there are also less obvious ways to donate your unsold space such as fundraising for victims of a neighborhood fire, soliciting donations for half way houses, homeless shelters, etc. This is called “giving back to the community.”
Now for the fun part. I have been bartering my business consulting services for 30 years. During this time, I have received tens of thousands of dollars in goods and services over 3 decades. As a publisher, you wield great power to exchange space in your publication for tangible goods and services. This allows you to lower your overhead or variable costs (as in the case of printing) or increase your standard of living (as in free meals, hotels, trips, theater and sports tickets, furniture, jewelry, etc.)
Are you beginning to get the picture yet? There is also one additional benefit. When you are ready to sell your business, all the benefits I mentioned above will be easy to explain to a prospective buyer. After all, he or she will want to see their name in print. And who knows, they may want to see a picture of themselves as well!
Tags: Buy a Business, Buying a Business
Today’s question is from Michael in Woodstock. Michael wants my opinion about his buying a publishing business.
Listen to the following podcast for the answer…
Or, read the answer here:
In my 38 years of being a business consultant and 23 years of being a business broker, the publishing industry has been my favorite for many reasons. Whether it’s a newspaper, magazine, newsletter, coupon book, Internet website, etc., the benefits during ownership and when you sell are immeasurable.
Let’s start with ego. Can you imagine what it’s like to see your name in print with every issue or on an Internet website visited by thousands of “hits?” It’s like winning an award each and every month with your name engraved on it. Now, how does that make you feel each day that you get up and go to work?
Speaking of going to work, how does a commute down your hallway from your bedroom to your home office sound? I’m sure that not having to fight traffic anymore makes sense on multiple levels. No more wear and tear on the car. No more crawling along in traffic. No more monthly parking expense. No more dealing with nasty days of rain, snow, oppressive heat, high humidity, etc. I’m sure you get the picture.
How about the learning curve when you buy a publishing business? Well, you can either be a writer or a non-writer. If you are a writer, you can contribute to each issue. If you are not a writer, there are many freelance writers continually seeking a venue for their talents. If you are not a proofreader, you can always hire an editor to perform this task.
You may be wondering what on earth you will be doing if all these other tasks are being handled by specialists. Well, one thing is to continually contact printers to be certain you are obtaining competitive prices. Particularly during today’s economy, you should be able to negotiate substantial savings.
Another thing you need to aggressively pursue is the sale of advertising. If your publication is subscription based, advertising is less important. But, if you rely upon advertising to cover fixed and variable costs, the amount of advertising sold will dictate the size and quality content of each issue.
One added bonus that is not readily apparent is the ability to “give away space” for public service, community affairs and most important of all – barter. With regard to public service and community affairs, there are some obvious cases like The American Cancer Society, The American Heart Association, a local youth center, announcements of public meetings, etc. But there are also less obvious ways to donate your unsold space such as fundraising for victims of a neighborhood fire, soliciting donations for half way houses, homeless shelters, etc. This is called “giving back to the community.”
Now for the fun part. I have been bartering my business consulting services for 30 years. During this time, I have received tens of thousands of dollars in goods and services over 3 decades. As a publisher, you wield great power to exchange space in your publication for tangible goods and services. This allows you to lower your overhead or variable costs (as in the case of printing) or increase your standard of living (as in free meals, hotels, trips, theater and sports tickets, furniture, jewelry, etc.)
Are you beginning to get the picture yet? There is also one additional benefit. When you are ready to sell your business, all the benefits I mentioned above will be easy to explain to a prospective buyer. After all, he or she will want to see their name in print. And who knows, they may want to see a picture of themselves as well!
Tags: Buy a Business, Buying a Business
