By Abiola Ayankunbi
Media firms; either print or online/digital are springing up on a daily basis. It seems that everyone in the industry is dreaming of becoming a publisher. There is nothing bad or wrong in having a tall ambition but it has to be done with a view of making profit while maintaining the professional ethics. Publishers should therefore be seen as businessmen or entrepreneurs because the nature of the job goes beyond news writing. Journalists remain the rallying point in the industry because they dish out contents that drive both copy and advert sales.
Before any services (marketing of information) contemplative businessman can take off, he needs a treasure-map of his proposed business; this is called business feasibility report or study. A feasibility study is an investigation undertaken in order to ascertain whether a business proposal will succeed or fail. It requires gathering a reasonable percentage of facts and opinions about the proposed business to determine whether the venture will be commercially viable, technically feasible, economically desirable and socially acceptable. Importance of research should not be relegated at all.
It is a known fact that media is to inform, educate and entertain the reading public; the central focus is purely about the profitability or otherwise of the contemplated media firm. Media feasibility hangs on the two important functions of general management, that is: planning and controlling. The document is a must for anybody who may want to start a new media firm from the scratch or buy an existing one or even expand an on-going media enterprise. Enough of copy-copy! The characteristics or features of the existing media firms are nearly the same with little or no difference. Regrettably, the ones that are being copied are not even doing fantastically well when compared with the Nigerian population, literate level and economy status.
The conduct of feasibility study can be carried out by the contemplative businessman himself if he is sufficiently knowledgeable in business administration and report writing or he can procure the services of consultants to prepare the document or report on his behalf. However, such consultants should not pirate existing and fine-tune an already existing document to suit their intended purposes because reports cooked up in this way often lack reliability and validity. Such report when eventually prepared helps in no small way in taking a decision on whether to accept, modify or reject an investment project in the light of its appraised merits and demerits.
The near insolvency in the industry is the more reason why this exercise should be embarked upon not minding the present status of the enterprise. Purpose of conducting feasibility study is to examine and establish the viability of the proposed project. Another reason is to specify the project concept, operational method, market strategy, manpower profile, accounting system, financial projections and planned growth. Equally, it is to determine the sources of capital, operational funds and to ascertain the manner in which the company’s services and credit facilities would be rendered and extended.
Components of the intended feasibility study are economic/marketing, technical, financial and management plans. Economic or marketing plan relates to information regarding the proposed business project background and market analysis. This includes history, nature of the business, legal requirements, promoters, shareholders, size of the total market demand, estimation of one’s market share, the industry’s competitors, total supply to the market, supply gaps, production programme, marketing mix strategies, etc.
Technical plan ascertains whether the venture will be technically feasible; this includes newspaper description (sections, classifications, layouts), choice of technology, selection of machinery, raw materials requirements, infrastructural facilities, company’s location, manpower, and training requirements.
Financial plan deals with the financial analysis of the project. It deals with the question of sources and uses of fund and whether the project .will generate enough profit within a targeted time. The debt-equity structure of financing should be clearly stated as part of the sources of fund. Financial projections as part of the uses of fund should be clearly mapped out. The amount of total capital investment, the net working capital loan and interest payments, and length of period for moratorium should also be clearly stated.
Sound management is very crucial if a business venture is to succeed. It is the values of the top managers that dictate the direction in which the business is to move. Management complacent heir apparent for any new or existing media firms should be competent individuals who can drive the enterprise to the wonderland of excellent results. They are supposed to be true managers rather than damagers.
Conclusively, the selection of any particular initiative should be based on a clear vision of the future as well as a comprehensive feasibility study of initiatives; what is technically feasible may not be economically viable or socially desirable. However, lack of entrepreneurship skill is the reason why some journalists look conservative and unable to start strategic venturing. And for those that possess entrepreneurship skills, they also lack the technical capacity to run the media firms/enterprises besides lacking managerial and business accounting skills.
…Ayankunbi is MD/CEO at AbingMO3 Marketing Management Consultancy.
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