I enjoy speaking with fellow hyperlocalists, especially when one has an interesting question to pose. Recently, one hyperlocalist — I’ll call him Buddy for privacy’s sake — said he’d been approached by a large local business that was willing to finance a news network covering nearby neighborhoods, with Buddy at the editorial wheel. In exchange, the business would get discounted advertising space and a regular column about its industry.
However, Buddy was worried about a potential conflict of interest. Might this solitary business investor dictate content to the detriment of his publication’s journalistic integrity? Would this be a deal with the devil?
My advice to him was this: Make the damn deal, but hammer out every detail first. That includes details in one’s business plan, corporate or nonprofit structure, and newsroom hierarchy (even if it’s a newsroom of one). Getting his house in order allows Buddy to spell out his publication’s financial and philosophical objectives to this investor, and it will help both parties understand where the boardroom ends and the newsroom begins.
Next, I suggested that Buddy and his investor test drive this business arrangement on his existing publication. Instead of launching new franchises from scratch, Buddy can apply the investor’s capital to expanding his current news coverage into adjacent neighborhoods, taking advantage of his existing network of local freelance reporters and bloggers. If the expanded coverage proves to be self-sustaining, he can then launch franchises with the same journalistic clout and financial stamina of his original publication.
Buddy’s one investor can also be his greatest cheerleader, encouraging other businesses to invest in or advertise with his original news outlet and new franchise network. After all, a viable hyperlocal news product reflects a neighborhood worthy of investment, something from which area retailers, restaurateurs, employers, homeowners and municipal agencies benefit.
I hope Buddy keeps me up to date on how this business arrangement progresses and whether he’s taken approaches other than what’s mentioned above. In the meantime, hyperlocalists can get help with the nuts, bolts and numbers of their business plans with the Service Corps of Retired Executives (SCORE), a terrific nonprofit group that advises small business owners.
Hello, potential investor. Will you be my friend?
I enjoy speaking with fellow hyperlocalists, especially when one has an interesting question to pose. Recently, one hyperlocalist — I’ll call him Buddy for privacy’s sake — said he’d been approached by a large local business that was willing to finance a news network covering nearby neighborhoods, with Buddy at the editorial wheel. In exchange, the business would get discounted advertising space and a regular column about its industry.
My advice to him was this: Make the damn deal, but hammer out every detail first. That includes details in one’s business plan, corporate or nonprofit structure, and newsroom hierarchy (even if it’s a newsroom of one). Getting his house in order allows Buddy to spell out his publication’s financial and philosophical objectives to this investor, and it will help both parties understand where the boardroom ends and the newsroom begins.
Next, I suggested that Buddy and his investor test drive this business arrangement on his existing publication. Instead of launching new franchises from scratch, Buddy can apply the investor’s capital to expanding his current news coverage into adjacent neighborhoods, taking advantage of his existing network of local freelance reporters and bloggers. If the expanded coverage proves to be self-sustaining, he can then launch franchises with the same journalistic clout and financial stamina of his original publication.
Buddy’s one investor can also be his greatest cheerleader, encouraging other businesses to invest in or advertise with his original news outlet and new franchise network. After all, a viable hyperlocal news product reflects a neighborhood worthy of investment, something from which area retailers, restaurateurs, employers, homeowners and municipal agencies benefit.
I hope Buddy keeps me up to date on how this business arrangement progresses and whether he’s taken approaches other than what’s mentioned above. In the meantime, hyperlocalists can get help with the nuts, bolts and numbers of their business plans with the Service Corps of Retired Executives (SCORE), a terrific nonprofit group that advises small business owners.
Good luck, Buddy!
Photo courtesy of Flickr user mtsofan.