Unique Business Opportunity
Start up your own newspaper in your state or city in the 1.5 trillion dollar health care business
This is not a franchise, no licensing fees. You own your own business and we show you how to set it up and run it. We have over 19 years experience in the health care publishing business. We will show you how our “Health Care News Alliance” will help you grow and allow you to make substantial profits in the health care publishing business. If you are interested read on.
We believe this is a unique business opportunity for a couple of reasons. First the health care industry is huge, simply read any consumer newspaper, watch any television news or listen to any all news radio station and many of the lead stories are about health care. Most people don’t know that health care is the second largest business in this county, right after the government. In a New York Times article dated January 8, 2004 they point out that today it is a 1.55 trillion a year business and we estimate based on government and insurance industry history and projections it will be 2.0 trillion by 2010. So health care is a good business to be associated with. On the other hand what most people don’t know is it is a local business. State laws and reimbursement policies vary dramatically by state and consequently you don’t see a “one glove fits all” approach to health care services. Hence, the need for a local media vehicle that reports independently on the business of health care. Let me stop at this point regarding independent newspapers and give you the next reason why this is a unique business opportunity.
Our proposal is not a franchise, there are no franchise fees or for that matter licensing fees. This will be your business. We will call on our 19 years experience with Health Care Weekly Review of Michigan to help you set up the paper, provide you with use of our trademarked name [no cost] and feed you four pages of national editorial every week. It is your job to operate in a frugal business fashion and sell local advertising to generate revenues. When we started Health Care Weekly Review it took us six months to breakeven. We believe that based on our experience you should generate 40% return on revenue sales. Needless to say we have learned a few tricks of the trade over the years and pass those on when we provide you with our “Publishers Guide” [no charge].
Finally we will share national revenues with you [national sales where we make our money] with 25% of the revenues after advertising agency and sales costs are deducted going to you and we make those payments to your paper in a formula outlined in the licensing agreement. The licensing agreement in essence allows you to use our trademarked name, receive start up help in terms of on site counseling, four pages a week of national editorial and of course the shared revenue there are three questions that arise in responses to our proposal in the health care industry publishing opportunity. I would like to take this moment to offer an explanation concerning these three questions.
First concern. “I’ve never been a publisher and I don’t believe I would know how to publish a newspaper.”
Answer. I was not a publisher when I started in the business but I quickly learned. For example, you need a reasonable understanding of the English language, an interest in the subject [health care is a huge and exciting business] and a common sense business approach. The publisher is the leader of the company, he or she meets with the health care community and determines the general direction the paper will take on the short term [the next issue] and the long term [area or state needs] that will establish the direction of the stories that appear in the newspaper. On the sales side he or she has to recruit and select sales people who are aggressive and willing to work hard on a commission basis. Editorially, he or she hires an editor to police and correct the freelance reporter submissions. In many cases the Publisher if he or she has some experience in writing may become the editor. Most importantly the publisher controls the cost of operations.
Second concern. The question most often asked is "how much will it cost to start the paper."
Answer. Our attorney makes the point that we cannot use my current newspaper, Health Care Weekly Review performance or any financial projections to estimate a future Alliance member’s revenue and profits. If we were to provide any records or estimates and your paper did not perform to those projections we could be sued for misleading an Alliance member. Having made this point I would like to explain what the variables are and how they can affect the start up costs of a publication.
· A new publisher must determine whether or not they want to open an office or work from their home.
· Computers are needed but the type and scope of support equipment is determined by the publishers needs and licensing requirements to interface with the Health Care News Alliance website.
· While an editor is needed, the publisher makes the determination as to what is needed and as we said before you may want to be the editor or you may want to recruit one from your publishing area. This decision affects the cost of operations.
· Off set printing is needed - you may have to make an arrangement with a regional printer or you may already own the equipment.
· Freelance writers need to be hired but the pay is based on the market conditions and what you are willing to pay.
· You will need to decide whether you want to rent, buy or lease items such as your phones, copiers, stamp machines and again your decisions determine the net effect on operating costs.
· If an off set printer is needed you must negotiate with various printers to get the best price and this is determined by market conditions and guidance from HCNA.
The point is all of these items and more are determined by your needs and the cost of doing business in your state or community. We, HCNA will walk you through each of these decisions in concert with our publisher’s guide. We’ve had experience in all of these areas and will counsel you and help you make the best decisions for your area and your needs. We need you to succeed in order to allow us to succeed which brings me to the third concern.
Third concern. Where does HCNA make its money and how does it affect The publisher.
Answer. You sell local advertising and that is how you make most of your money. We provide in the licensing agreement the use of our trademarked name, Health Care Weekly Review, four pages of national editorial each week [use only what you want], we give you the publishers guide and we are there to help you open your paper, We sell national advertising space in your newspaper and we share a portion of that sale with you, 25% of the sale after advertising agency commissions and sales costs.
I’m certain there are many more questions that need to be answered and that is why we want to meet with you. This is about a one hour meeting to go over the nitty gritty of the licensing agreement and make certain in our mind as well as yours that you will be successful……because without you being successful we can’t be successful.
Sincerely,
David C. Martin
Phone 248-594-0077
Fax 248-594-8855
e-mail – dmartin@hcnalliance.com
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