Digital Directions: The Top 10 Ways to Kill Your Publishing Business
Many of these critical decisions pertain to the digital realm. Here are the top 10 ways to kill your business by making the wrong choices in digital strategy:
1. Apply the full cost of a delivery program to the profit & loss (P&L) statement of the first product to use it.
A digital-product initiative may require a content management or e-commerce platform. Or it might require a new role for the organization, such as customer support. If so, apply the full cost of these new capabilities to the initial product to require it. Why have pesky capital expense charges lingering on your balance sheet for years? If this capability is truly required, then the initial product’s revenue should be able to cover it. If this product fails to meet gross margin targets, write it off. If it does meet GM targets, then subsequent products can benefit from the new capability.