PUBLISHER'S BUSINESS QUOTIENT
TEST
- By
Stephen J. Kerr
The
following is an unscientific, but we hope effective, test that you can
take to measure your financial and marketing acumen. These questions
are based (loosely) on Stephen J. Kerr's articles, "Do You Know Your
FQ?" and "Do You Know Your MQ?".
In each box mark a 1 or 0. If the answer in your
head is "sometimes", mark a zero. If the answer in your head is "usually",
you may mark a one. In all other cases, either you do…or you don't. Good
luck. You may begin whenever you are ready.
Do you or your company…
___Make monthly Income Statements and Balance
Sheets?
___Make title by title P&L projections for each
intellectual property?
___Create budgets and compare actual performance
to budget, at least once a year?
___Have a business plan that is less than two
years old?
___Write out a "mission statement" for your company
that states clearly and concisely what your goals and
objectives are?
___Make monthly or annual cash flow projections
for the business?
___Track your inventory levels closely and replenishing
inventory wisely?
___Watch closely what your competition is doing
in your niche market and work to get a competitive
advantage over everybody else?
___Track and segment your job costs and expenses
by their corresponding projects?
___Track revenues by source of sale: (Internet,
direct marketing, bookstores, mass market, etc.)
___Follow your overhead, marketing and sales
costs and look to lower them?
___Look for ways to lower the royalties and rep
commissions you pay?
___Fight vendors for price and terms concessions
and consistently shop for lower cost vendors?
___Build relationships with your bank, other
bankers and potential funding or investor sources?
___Build multiple income streams for each publication
or book, including serial and subsidiary rights,
movie, audio, videotape or internet income?
___Push your authors to do everything possible
to promote their books - such as, signings, speaking,
seminars, television and radio appearances?
___Look to turn as many works as possible into
continuity series, encouraging the consumer to buy
multiple, follow-up books on the
same subject - or at least cross market with other compatible
books, videos or audio tapes?
___Put your Internet web address, return address
and telephone number in each unit?
___Offer free gifts or discount coupons in the
back of your books that allow the consumer to redeem
their prize and you to capture their
name and information?
___Brand your books with celebrity or corporate
names that the consumer will recognize? (Where feasible.)
___Remain flexible and opportunistic in the market?
___Always look to retool or improve your business
model?
Tally up your score and write it here: ________
If you have a score of Zero to 6, you may be
in trouble. Seek professional help right away!
If you have a score of 7 to 13, you have some
work to do. Your information systems are weak and your publishing company
could get into trouble without you ever knowing it.
If you have a score of 14 to 17, you have a good
handle on your business. The company has systems in place that are providing
good data and management.
If you have a score of 18 or more, WOW, you are
cooking! You are on top of your business and know where you are going.
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