The first question every entrepreneurial journalist should ask
So you want to create a news business? Awesome, you’ve arrived at just the right time.
One of the first lessons I learned was to make an important distinction early on – and I think it is the first question you should ask before you start your entrepreneurial adventure:
Are you creating a product or a service?
They are two different, but equally valid, types of business – both of which offer great opportunities for journalists. A product is something tangible – something you make and sell, which is distinct from you. A service on the other hand, is something you specifically offer yourself, in exchange for money.
The world of journalism has a limited (but growing) number of products. A newspaper is a product. So is a magazine. In fact, you’ll often get the more managerial types of journalists often talking about ‘the product’.
The types of products have grown a lot in the digital age, and with that so have the opportunities. A book is a product, as is an ebook. A podcast, vodcast, blog, online magazine, smartphone app are also products. A TV programme is a product. A hyperlocal website is a product, so is a DVD, event and photobook.
In short, it is something you create and then try to make money from. And the people who buy your product are customers, or readers, or viewers.
When we think of business and enterprise, products are probably the first things that come to mind. The Dyson, the Macbook, the Prius: they’re all products. But, according to journalist and entrepreneur Nick Saalfeld, the service sector accounts for more than 70% of the UK economy, and in terms of the work and opportunities around, it’s a lot more varied.
A service is a skill or craft you offer to someone, in exchange for money. Often, but not always, you charge for your time.
This is the most natural type of business for journalists, because essentially it is doing anything freelance: a copy writer, photojournalist, video journalist, blogger, infographic designer, SEO bod, sub-editor…they are all services.
You as the service provider are intricately bound to the success of the business. The people who pay for your service are clients.
Now you might say because of that, entrepreneurial journalism has been around for a long time. But it’s not quite like that. You see, only recently have people started to create full businesses out of their services – packaging their services into products.
For example, take this video production company in the US, called TVKevin. They are a service business: people hire them to make short films about their company or business etc. But take a look at their website, and you can see how they have packaged their service into products: they offer something called BizShorts, and something else called MyStory.
Scale it up, and throw in some hardcore journalism, and you have MediaStorm, one of the most successful multimedia production companies out there. They offer a service to clients: high quality multimedia documentaries; but they package their services into product type solutions: films, audio slideshows and infographics. MediaStorm also have a lot of by-products: training, DVDs, and even t-shirts.
So which should you do?
Before you start thinking of business ideas, or even if you already have one, you should work out whether you are offering a product or a service. Knowing this early on saves any confusion later on. And there’s nothing to say you can’t do both, or be clever and mix them up like TVKevin & MediaStorm.