In the webinar, “Think Like an Entrepreneur: Building a Sustainable News Business,” veteran publishing consultant and entrepreneurial coach Phillip Smith explores key concepts for launching news efforts, from starting to ongoing success to navigating a challenging, evolving environment (algorithms, platforms, technology).
Whether you are starting a news project or already have one, this session will teach you useful skills. Read on for a brief recap of the presentation.
Why Do People Launch News Startups?
Phillip began by sharing his research into why founders start news businesses. He interviewed more than 100 leaders and found two true motives:
- Inspiration: A passion for serving their community.
- Desperation: A need to save local coverage when other outlets fail.
Understanding your “why” keeps you focused when you hit roadblocks. As Phillip put it, “Knowing your true motive gives you the fuel to keep going.”
The Main Causes of News Startup Failure
Starting a news media business is risky, with over half of all startups failing. Key reasons include:
- Building more than necessary to test a business model theory.
- Falling in love with the idea before itʼs been tested.
- Adopting magical thinking about how the idea will be viable as a business.
Success requires starting and navigating unknowns with the right mindset.
What It Means to Think Like a News Entrepreneur
To break these patterns, Phillip urged attendees to adopt an entrepreneurial mindset based on three simple rules:
- Before you launch, it’s crucial to validate the product idea. Early and frequent validation of the community or customer need for your product is highly encouraged. This also includes confirming that advertisers or sponsors genuinely want what you’re offering.
- Fall in love with “the information problem,ˮ not with your perceived solution to it. For example, Spanish-speaking members of a community do not have access to good news. This is because there is no daily Spanish news available nearby. This is the problem to address.
- Perfection is the enemy of done. Launch quickly and inexpensively to gather feedback and iterate on your product. This allows for continuous improvement. Stay open to changing direction when feedback points elsewhere.
Define Your Minimum Success Criteria
Before investing months or years, set clear success measures. Phillip calls these your Minimum Success Criteria—the smallest outcomes you’d accept after two years of work. He recommends breaking them into three areas:
- Impact: What change will you make in your community?
- Operations: How will your team handle day-to-day work?
- Finance: What revenue or funding goals must you hit?
Writing down these criteria keeps your team aligned and helps you know when to pivot or press on.
Access the full “Minimum Success Criteria” template and the recording here.
How News Startups Earn Revenue
There are three ways to earn revenue:
- From the audience directly (direct model)
- From a third-party that wants to access your audience or your impact (multi-sided model)
- As an exchange between other parties doing business (marketplace model)
In the initial stages, it’s crucial to thoroughly research all potential revenue streams. You won’t know what works until you experiment.
Utilize existing research on revenue sources from Indiegraf, Google, and other relevant entities. Dive deep into the revenue models of other news startups through competitive research. Identify your top two to five revenue options, then “get outside the building” and validate them through customer interviews.
Read more: Revenue Streams 101: Building a Profitable News Business
Key Takeaways
- Know Your Why: Stay motivated by remembering whether you started from inspiration or necessity.
- Validate First: Talk to real readers before building features.
- Lean Launch: Release your core idea quickly and improve it with feedback.
- Set Clear Success Criteria: Define impact, operations, and finance goals for two years out.
- Mix Revenue Models: Combine direct, multi-sided, and marketplace ideas to spread risk.
- Study Peers: Learn from other newsrooms and adapt what fits your mission.
- Prevent Pitfalls: Keep value clear, onboarding smooth, communication frequent, pricing fair, and data flowing.
If you are a news entrepreneur who didn’t catch the live session, the replay is still available—and it’s packed with insights for anyone launching or growing a news business. Whether you’re just getting started or refining an existing model, Phillip Smith’s practical approach to entrepreneurship will help you avoid common pitfalls and build a stronger, more sustainable newsroom.
🎁 Register now to watch the full recording and get two free resources to kickstart your growth:
- Minimum Success Criteria Exercise Template – Define what success looks like for your newsroom.
- Estimate Your Revenue Calculator – Plan a realistic, diversified revenue mix that supports your mission.
