Wednesday, October 29, 2008

Yes, I'm sure

I think I worry people a lot when I tell them what I want to do with my life.

The usual responses:
"Are you sure?"
"Newspapers are dying, Kelly Ann. What do you think you're doing?"
"Do you have a backup plan?"
"Don't put all your eggs in one basket..."
"There won't be a newspaper in 10 years. Where will you be?"

My response:
Chill.

The economy is on its way to hitting rock bottom. People save an average 0 percent of their incomes. (Seriously. In 1998, Americans saved -0.2 percent. Really, America?) The housing market has flopped. Unemployment is up. And you're really worried about newspapers? I think we've got bigger fish to fry.

Let me reassure the weak of heart. Newspapers are in a transition period. Up until a few years ago, newspapers were making a 23 to 25 percent profit margin. Things were good. We built big news buildings, gave away lots of vacations and put out niche publications like there was no tomorrow.

Unfortunately, tomorrow is here. Instead of our usual inflated margins, we're making about a 15 percent profit. Keep in mind that an average business enjoys about a 3 to 5 percent profit margin. So we're still rakin' in the dough; it's just not as much as we're used to. It all boils down to making adjustments. Right now, we're going to whine and scratch our heads because Mommy's not giving us the lollipop we want. Once we figure out why she's not giving it to us and what we can learn from it and then learn to live with it, we can come out of this with renewed passion for the industry and ideas to take the "newspaper" to new heights.

Give newspapers five, maybe 10 years. We'll come out of it. People will always need information. Journalists will always provide that information.

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