Part I: “Financial Bootcamp: Driving Inefficiencies Out of the Business” with Barbara Israel (WeiserLLP), Pat Fox (Active Interest Media), Clay Hall (Aspire Media) & Tom Winsor (Horse Media Group).
· You are not alone. Everyone is going through some type of economic change · The first step is to survive; only the fittest survive · Assess your situation and have goals: o Meet outside requirements – bank covenants or investor expectations o Keep margins steady o Free up cash · Put everything on the table – reexamine everything · Involve staff in cost cutting measures · Renegotiate where possible o Review long-term contracts, renew contracts with cash payment o Extend payment terms and discounts; ask for discounts; bring prepress and editorial services in-house for savings · Work with your printer o Examine trim size, look for alternate papers, co-mail o Review heavy buy paper (weight and quality) o Review and adjust print orders · Maximize newsstand efficiencies o Increase price; know your breakeven point; control draws; eliminate main line sales; consult with a newsstand consultant o Improve subscription economics (review your sub prices) o Cut frequency; seek advantages of double issue · Add an SIP (repurpose your editorial) · Review basic business structures (reorganize, reduce staff and streamline) · Consider outsourcing · Cut below minimum book size (short-term recommendation) · Cut back on desireable operations (short-term recommendation) · Cut rate base (be careful…do it only in conjunction with an ABC period) · Shutter titles; assess long-term survivability potential (final option recommendation) · Cutting necessary staff (final option recommendation)
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