Business Plan for

Sexpression
Magazine
A product of Grayce
Publishing
Grayce Collis
1
Contents
1. Executive suary !"
1.1 #$%ectives
1.& Mission
1." 'eys to success
1.( Brand values
&. Copany )uary
!(
&.1 )tart*up suary
&.& Copany locations and facilities
". Mar+et Analysis !,
".1 Positioning
".& Copetition
"." -arget .eaders/ip
(. )trategy 0 1pleentation )uary !2
(.1 Mar+eting strategy
(.& 3istri$ution strategy
(." Prootion strategy
(.( Pricing strategy
(.4 )ales strategy
4. 5inancial Plan 1!
4.1 Advertising
4. & .evenue #utline
2
1. Executive )uary
Grayce Pu$lis/ing is a ne6 sole proprietors/ip7 founded in &!1( and is t/e pu$lis/er of
8)expression8 agazine7 a 9:*paged agazine aied at people of all types7 aged 1:; in t/e <'.
-/e ai of t/e agazine is to teac/ adults everyt/ing t/ey need to +no6 a$out sex t/at t/ey dont
+no6 already. =e 6ill rival agazines suc/ as ens agazine 5>M and 6oens Cosopolitan7
t/at unli+e )expression7 arent gender neutral. -/e agazine /as printed its first issue 6/ic/ 6ill $e
released )pring &!1(.
=/ere ?)expression@ fits into t/e ar+et7 is t/at it provides ?Cosopolitan@ style advice7 $ut also
deals 6it/ t/e sexual politics and ta+es a very li$eral stance in regards to current issues suc/ as
pornograp/y and sex 6or+ and teac/es its readers to $e ore sexually li$eral.
Grayce Pu$lis/ing is targeting a circulation of 8)expression8 of 147!!! in year one t/at 6ill
increase to 9!7!!! $y t/e end of year t/ree and 6ill $e pu$lis/ed Auarterly. =e ai to +eep close
relations/ips 6it/ t/e advertisers and sponsors 6/o 6ill 6or+ alongside us to develop a devoted
readers/ip7 6e 6ill provide t/e 6it/ entertaining and inforative articles7 in addition to providing
offers on $e/alf of sponsors and advertisers.
=e also run a ?)expression@ 6e$site t/at 6ill provide free access to saple features7 6it/ constant
updates on ne6s relating to t/e agazine7 t/e site 6ill include social edia side$ars to /elp $uild a
follo6ing7 in addition to su$scriptions. A ont/ly ne6sletter 6ill also $e sent to online su$scri$ers.
Most of t/e success of ?)expression@ agazine 6ill $e utilised $y t/e successful ar+eting
strategies7 as 6e $elieve consistent ar+eting to $e t/e +ey to expanding our circulation.
)uccessful execution of ?)expression@ agazine 6ill produce a loss in year one7 $rea+ even in year
t6o and a profit $y year t/ree7 fro year t/ree t/ere 6ill $e a draatic increase in net profit.
1.1 #$%ectives

-o /ave ade a profit of B $y t/e end of year one.

-o /ave 47!!! eail su$scri$ers $y t/e end of year one.

-o /ave 1!7!!! follo6ers on social edia Ct6itter7 face$oo+7 tu$lrD $y t/e end of year one.

-o /ave t6o sponsors $y t/e end of year one.

3

-o /ave ore t/an :!! t6o year su$scriptions sold $y t/e end of year one.

-o sell (! ad pages in year one.

1ncrease cost of ad pages fro E9!! to E17!!! $y year t6o.

1.& Mission )tateent
?)expression@ ais to educate its readers on sexual politics and encourage $ot/ en and 6oen7
straig/t or FGB- of all ages7 to sexually epo6er t/eselves t/roug/ t/e use of inforation and
real life stories.
1." 'eys to success

Consistent ar+eting strategies.

=ell anaged relations/ips 6it/ advertisers and sponsors.

Professionally designed 6e$site 6it/ regular updates.

Controlling costs 6/ile spending t/e axiu on su$scription ar+eting in year one.

Constant interaction 6it/ readers.

Attain target circulation in year one.

Attain targeted advertising sales revenues.

1ncrease advertising space costs $ased on circulation.

Put a lot of oney into launc/ in order to give us a cofort starting position.
1.( Brand Galues
-/e ?)expression@ $rand is ore t/an %ust a sex agazine7 its a lifestyleH a place 6it/out
%udgeent.
=it/ t/e $rand7 6e plan to $ring parties fro t/e very $eginning of t/e launc/ 6it/ appearances
fro top cele$rities in t/e sex industry. =e 6ant our dedicated readers/ip to $enefit fro t/e $rand
nae7 6e 6ill give t/e t/e c/ance to $e G1Ps at our events. =it/ enoug/ sponsors7 6e ai for
)expression events to $e a regular occurrence.
&. Copany )uary
Grayce Pu$lis/ing is a ne6 sole proprietors/ip7 t/at provides /ig/ Auality %ournalis t/roug/
agazines and online. )expression is t/e first agazine to $e pu$lis/ed $y Grayce
Pu$lis/ing. =e 6ill cater to a large range of people and 6ill deliver t/e 6ell*researc/ed
and 6ell*6ritten %ournalis t/at 6ill entertain and infor to a /ig/ standard. =e 6ill also
6or+ 6it/ advertisers7 $ot/ online and in our agazines7 and t/roug/ strategic ar+eting
6e 6ill ensure t/at 6e are providing t/e 6it/ /ig/ profita$le $usiness.
&.& )tart*up suary
EAuity investent in t/e copany is $eing ade availa$le to outside investors. -/e reason $e/ind
t/ese investents is to raise enoug/ to fund t/e launc/ of t/e agazine. BB is t/e iniu needed
to covers expenses for launc/7 and extra oney raised 6ill $e put into ar+eting and distri$ution
costs.
4
)tart*up expensesI
PersonnelI E1:47!!!
)oft6areI E":&.((
5irst issue printingI E27!!!
=e$siteI E,(!
1nternetI E1(!.4!
5irst issue distri$utionI E(74!!
>ard6areI E179(2
Mar+etingI E&!&7!!!
-ravelI E47!!!
Total funding required: 408,412
Personnel
-/e cost of full staff 6ill $e a total of 1:47!!! per year.
)ocial edia x &I
E147!!!
E147!!!
=e$site designerI
E147!!!
P/otograp/erJp/oto editorI
E147!!!pa
EditorI
E&!7!!!
)u$*editorI
E&!7!!!
=riters x &I
E147!!!
E147!!!
5reelanceI
E1!7!!!
Grap/ic designersI
E147!!!
Custoer supportI
E147!!!
Advertising salesI
E147!!!
-otal per yearI E1:47!!!
All t/ree yearsI E4447!!!
-o reduce costs7 6e plan to use priarily freelance 6riters7 6/ic/ 6e 6ill cover 6it/ an annual
$udget of E1!7!!!. =e 6ill /o6ever7 /ave t6o peranent 6riters in addition to t/is7 eac/ on an
annual salary of E147!!!. As ar+eting is one of our +ey strategies7 6e 6ill /ave t6o social edia
staff e$ers7 6/o 6ill updated t/e tu$lr7 5ace$oo+ and t6itter constantly and to +eep interaction
flo6ing 6it/ our readers.
-ravel
5
As 6e intend to deliver Auality and 6ell*researc/ed content every issue7 6e 6ill reAuire to travel a
lot. =e estiate travel expenses to coe to a year one cost of E47!!! and up to E&!7!!! 6/en 6e
/ave a larger $udget.
Printing
=e found a printer t/at c/arges E9!! per 17!!! copies. As 6ere aiing for a circulation of 147!!!
per issue. -/e first issue printing costs 6ill t/erefore $e E27!!!.
1n t/e total first year7 6e ai to sell 9!7!!! copies. ( issues per year7 a circulation of 147!!! per
issue.
-otal first year cost K E"97!!!
1n t/e second year7 6ere aiing for a circulation of "!7!!!.
)econd year cost K E,&7!!!
-/ird year 6e estiate a circulation of 9!7!!!.
-/ird year printing costs K E1((7!!!
1f need $e7 6e 6ill $e a$le to cut costs easily $y printing in $lac+ and 6/ite7 as t/is is t/e t/ee of
t/e agazine.
3istri$ution
Magazine distri$ution t/roug/ ne6sstands costs E"!! per 17!!!.
5irst issue distri$ution of 147!!! agazines 6ill $e E(74!! and 6ill $e distri$uted Auaterly.
-otal first year cost 6ill $e E1:7!!!.
)econd year 6e 6ill $e distri$uting "!7!!! agazines per issue.
-otal second year cost 6ill $e E"97!!!
-/ird year 6e 6ill $e distri$uting 9!7!!! agazines per issue.
-otal t/ird year cost 6ill $e E,&7!!!
Mar+eting
Most of our ar+eting 6ill $e done t/roug/ social edia7 so t/e only costs 6ill $e to t/e staff. =e
do /o6ever plan to advertise on popular sites suc/ as love/oney and possi$ly even porn sites7
t/roug/ $anner ads. =e 6ill set aside E&7!!! per year for online advertising.
1n addition to t/e E&!!7!!! spent on t/e launc/ party7 t/is s/ould coe to a total ar+eting cost of
E&!&7!!! in year one and an additional E&7!!! per year.
6
=e$site
=e$site design costs * E9!!
=e$site /osting costs * E1! per ont/
3oain registration * E&! per year
-otal annual costI E1(! ; one*off E9!! design costs.
#ffice
5or year one7 to reduce costs7 $usiness 6ill operate fro a /oe office in )out/ East Fondon.
>o6ever fro year t6o7 6e plan to expand to a central Fondon office in )o/o7 rent 6ill cost
E4!!p.
-otal annual costI E97!!!.
1nternet
5or a -al+-al+ $usiness7 it costs E1!.4!p 6it/ an additional one*off cost of E1(.4! for line rental.
-otal year one costI E1(!.4!
" year costI E"2&.4!
>ard6are
)taff all /ave personal coputersJlaptops7 6e 6ill reAuire one iMac for design purposes for a fee of
E171(2.
And an additional E4!! for a caera.
)oft6are
Ado$e 1n3esign costs E1,.4: per ont/.
-otal annual costI E&1!.29
-/ree year costI E9"&.::
Ado$e P/otos/op E1(.&2 per ont/
-otal annual costF E1,1.(:
-/ree year costI E41(.((
&.& Copany location and facilities
-/e initial office 6ill $e esta$lis/ed in a dedicated office roo in t/e proprietors /oe in )out/
East Fondon7 6it/ easy access to pu$lic transport and less t/an a ten inute train a6ay fro
Central Fondon.
7
". Mar+et Analysis
".1 Positioning
Based on t/e circulations of siilar agazines7 6e estiate to reac/ a circulation of at least 147!!!
in year one7 6/ic/ 6ill $e aintained $y constant ar+eting. =e also /ave /ig/ expectations for
our first issue7 due to t/e large aount of oney put into t/e launc/.
Cosopolitan agazine is one of our ain copetitors as t/ey /ave t/e largest feale audience of
any feale ont/ly agazine. And 6/ilst 1 dont see our readers/ip reac/ing t/eres C17,"47!!!D
$y our t/ird year. Sexpression caters to a uc/ $roader ar+et $y appealing to $ot/ sexes and $y
also catering to nic/e ar+ets suc/ as FGB- and couples and t/ose 6/o 6ant to learn ore a$out
sex.
=/at 6e offer t/at ens agazines do not7 is t/at 6e provide7 6/at 6e 6ant to $e an accepta$le
sex agazine7 t/ats on a copletely different level to t/e ?top*s/elf sut@. And soet/ing t/at
rivals pornograp/ic agazines as it deals 6it/ real sex7 $ut in a sexy 6ay.
".& Copetition
Cosmopolitan /as an average circulation of &,271&, per issue. -/ey /ad an initial print run of
"4!7!!! 6/en t/ey launc/ed in 12,& as t/ey 6ere a$le to %up straig/t into t/e ar+et 6it/ a -G
spot $y )aatc/i 0 )aatc/i. #ur ar+eting 6ill need 1!!L at all tie7 to put on t/e sae level as
Coso.
Womens Health /as a circulation of 1!47(99.
i!a7 a nic/e agazine aied $i and les$ian 6oen7 /as a circulation of 447!!!.
"H# /as a circulation of 297(4&
$oo /as an average circulation of &274&1
%ude maga&ine is an online*$ased sex agazine7 uc/ li+e ours. -/ey are pro$a$ly one of our
greatest rivals as t/eir content is free.
The "ris'( is online MN $ased ne6s source7 uc/ li+e .ude agazine7 t/ey are a $ig copetitor
as t/eir content is free and 6idely availa$le. =/ere 6e differ is t/at 6e deliver /ig/*Auality long
features and intervie6s of 6/ic/ 6e put 1!!L effort into so t/at 6e provider our readers 6it/
Auality 6ort/ paying for.
"." -arget .eaders/ip
-/e readers 6e ai to target 6ill $e strictly 1:; 6it/ a deograp/ic of 1:*(!. Based on Cosos
edian age $eing &,7 our readers/ip 6ill $e slig/tly siilar7 if not older. As 6e 6ill $e targeting a
young deograp/ic7 yet 6e also 6ant to $e soet/ing different for older readers as 6ell7 t/e
a%ority of our readers/ip 6ill $e $et6een &4 and "4.
)expression 6ill $e a successful agazine as alt/oug/ it /as siilarities 6it/ ot/er agazines in
t/e ar+et7 it /as identifia$le differences t/at ot/er titles see to lac+. -/at $eing t/at its gender
neutral and deals 6it/ topical su$%ects and sexual politics as 6ell as delivering lig/t*/earted
entertainent.
=/ilst t/ere are ot/er sex agazines on t/e ar+et7 t/e a%ority appeal to eit/er strictly straig/t
feales or t/e /egeonic ale. As far as agazines go in a capitalistic society7 any are sexist in
8
t/at t/eyre aied at en or focus on /o6 a 6oan s/ould iprove /erself for a an.
)expression focuses on t/e 6ay people are and opens t/e up to ne6 ideas for t/eselves.
(. )trategy 0 1pleentation )uary
(.1 Mar+eting strategy
-/e launc/ party 6ill /elp us to secure sponsors and advertisers for future issues and 6ill 6or+ as a
ar+eting strategy to get t/e ?)expression@ $rand out t/ere. =e plan on putting E&!!7!!! into t/e
launc/7 t/is 6ill of course cover venue7 usic7 drin+s7 food7 $lo6n*up iages of t/e agazine7
$randed party favours7 free agazines and t/e appearances fro our sponsors. -/e party 6ill also
give us t/is opportunity to net6or+ 6it/ potential sponsors and advertisers.
As t/e agazine 6ill $e released every t/ree ont/s7 6e can cut $ac+ on staff. >o6ever7 as t/e
6e$site and social edia 6ill $e consistent t/roug/ t/e year7 t/e areas 6/ere t/ere 6ill $e /ig/er
staff costs 6ill $e social edia and 6e$site aintenance. 1n addition7 6e 6ill reAuire an editor and
su$*editor at /and at all ties and 6ill reAuire 6riters constantly to +eep t/e 6e$site updated and so
t/at 6e /ave good Auality %ournalis every issue as 6ell as online.
-/e a%ority of our ar+eting 6ill $e done via social edia to reduce costs7 /o6ever 6e 6ill
advertise 6it/ clients of 6/o 6e /ave good relations/ips. Most of t/is 6ill also $e done online7
suc/ as online s/ops.
(.& 3istri$ution strategy
Magazine su$scriptions 6ill $e availa$le on t/e site for a &*year su$scription7 : issues for E1!7 a
total saving of E9.
=e 6ill also distri$ute a free ont/ly ne6sletter to anyone 6/o signs up for free online7 t/e
ne6sletter 6ill consist of saple articles7 t/e researc/ 6ere doing for upcoing issues and any
ot/er free content.
Magazines 6ill $e distri$uted nationally to ne6sstands 6/ere t/ey 6ill $e sold at face*value for E&.
(." Prootion strategy
As entioned7 t/e a%ority of prootion 6ill ta+e place online and on social edia7 6e ai to +eep
close rel
Year 1 Year 2 Year 3
Income 153,200 318,000 625,400
Costs 448,911.94 311,648.44 424,648.44
9
Year 1 Year 2 Year 3
Net Profit -295,711.94 6,351.56 200,751.56
ations/ips 6it/ our readers and 6ill constantly interact via eail7 and 6ill use t/e data$ase and
social edia to infor potential readers of upcoing issues and anyt/ing topical t/at ay start
conversation. Consistent ar+eting is +ey.
(.( Pricing strategy
Magazines 6ill $e priced at E& eac/ and 6ill $e availa$le fro ne6sstands. >o6ever if readers
coit to a t6o*year su$scription of : issues7 it 6ill cost t/e only E1!7 a total saving of E9.
(.4 )ales strategy
Based on t/e aount of ar+eting 6e 6ill put into t/e launc/7 6e plan to sell an a$solute iniu
of 1!7!!! copies of t/e )pring issue7 and /ope to reac/ of circulation of /ig/er t/an 147!!! $y t/e
end of year one.
4. 5inancial Plan
4.1 Advertising .evenue
1n year one7 6e ai to sell 1! full ad pages per issue at a rate of E9!! per page.
-/is 6ill eAual E&(7!!! in ad revenue in t/e first year.
1n year t6o 6e plan to go fro a 9: paged agazine to a ,( page agazine7 6/ere 6e 6ill sell 14
ad pages per issue at a rate of E17!!! per page. -/is 6ill coe to a revenue of E9!7!!! in t/e second
year.
1n t/is t/ird year7 6e plan to expand to an :! page agazine7 6it/ &! ad pages per issue at a rate of
E174!! per page. -/is 6ill coe to a revenue of E1&!7!!! in t/e t/ird year
.ude agazine7 an online sex agazine c/arges E"4 per ont/ for $anner advertising7 6it/ every
sixt/ ont/ free. Alt/oug/ t/ey are one of our copetitors7 t/ey are siilar and t/is suggests 6e
too could c/arge for advertising on our site.
=e ai to get 4 advertisers online in year one7 and c/arge E&! per ont/. -/is 6ill $ring in a total
online revenue for year one of E17&!!.
5or year t6o7 6e ai to dou$le t/e online advertisers and c/arge E&4 per ont/7 a+ing t/at a total
second year revenue of E"7!!!.
5or year t/ree7 6e ai to /ave 14 online advertisers and c/arge E"! per ont/7 a+ing t/at a total
t/ird year revenue of E47(!!.
4.& Advertiser deograp/ics
=e ai to /ave relevant advertising 6/o 6e 6ill /ave close relations/ips 6it/7 so t/ey can
advertise 6it/ us and us 6it/ t/e.
10
-/e +ind of advertising 6e 6ant 6ill $e fro condo copanies7 sex stores7 lingerie s/ops7
alco/ol7 personal /ygiene products7 $ed stores7 sexual /ealt/7 fetis/ clu$s7 etc.
=e also plan to advertise products7 sites and $logs7 etc 6it/in our features if its relevant. =e 6ill
provide t/is advertising for free7 in return for free prootion.
4." .evenue #utline
AdvertisingI Near oneI E&(7!!! ; E17&!! fro online ads K E&47&!!
Near t6oI E9!7!!! ; E"7!!! fro online ads K E9"7!!!
Near t/reeI E1&!7!!! ; E47(!! fro online ads K E1&47(!!
)alesI Eac/ agazine 6ill $e sold at E& per issue7 unless su$scri$ed.
9!7!!! agazines are predicted to $e distri$uted in year one7 a+ing a total
revenue of E1&!7!!!
1&!7!!! agazines are predicted to $e distri$uted in year t6o7 a+ing a
total of E&(!7!!!
&(!7!!! agazines are predicted to $e distri$uted in year t/ree7 a+ing a
total of E(:!7!!!
)u$scriptionsI By end of year one 6e /ope to /ave sold :!! t6o*year su$scriptions at E1!
eac/7 a+ing a year one su$scription revenue of E:7!!!.
By end of year t6o 6e ai to /ave sold a furt/er 174!! t6o*year
su$scriptions at E1! eac/7 a+ing a year t6o su$scription revenue of
E147!!! .
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Costs Year 1Year 2Year
3Personnel185,000185,000185,000Printing36,00072,000144,000Distributing18,00036,
00072,000Travel5,00010,00015,000Internet140.50126126Hardware1,64900Software38
2.44382.44382.44Office
Rent06,0006,000Marketing202,0002,0002,000Website740140140Total448,911.94311,
648.44424,648.44
By end of year t/ree 6e ai to /ave sold a furt/er &7!!! su$scriptions at
E1! eac/7 a+ing a year t/ree revenue of E&!7!!!
-/e follo6ing ta$les and c/art s/o6 t/e costs7 incoe and net profits in year one7 t6o and t/ree.
Income Year 1 Year 2 Year3
Advertising 25,200 63,000 125,400
Subscriptions 8,000 15,000 20,000
Sales 120,000 240,000 480,000
Total 153,200 318,000 625,400
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