Building a Beloved Local News Empire

John Garrett shares his remarkable journey from starting a hyperlocal newspaper with a $39,000 credit card loan to building a thriving media company reaching 2.5 million households monthly.

On this episode I sat down with John Garrett, founder and CEO of Community Impact, a hyperlocal news organization that delivers essential information to communities across Texas.

Community Impact started as a small operation in Round Rock, Texas over two decades ago has grown into a network of 41 editions, reaching 2.5 million households every month. On the podcast, John shares the origins of his company, the challenges of scaling hyperlocal news, and his vision for the future of local journalism.

The Birth of Community Impact

John’s journey began in the late 1990s when he landed a business-side internship at the Houston Chronicle. This experience ignited his passion for local business and news, eventually leading him to a role at the Austin Business Journal as an ad manager.

While living in Round Rock, John and his wife, Jennifer, noticed a gap in local news coverage—one that hyperlocal newspapers weren’t effectively filling. So, in 2005, they took a leap of faith, maxing out a credit card with a $39,000 loan to launch the first edition of Community Impact.

With a business plan in hand and experience in ad sales, John focused on delivering high-quality, deeply reported local news while maintaining a sustainable revenue model. One early story—a detailed map of the new toll roads being built in Austin—was a hit, proving that there was demand for localized, in-depth reporting. Remarkably, the company became cash-flow positive within two months of launch.

Scaling Hyperlocal News in a Digital Age

Community Impact started as a print publication, and, despite the digital revolution, print remains a cornerstone of its business. Each month, the newspaper is mailed for free to every household in its coverage areas, offering residents a tangible and trustworthy news source. Yet, John recognized the need to evolve, introducing a daily digital presence that complements the monthly print editions.

Their approach, which John calls “phygital” (physical + digital), leverages the strengths of both mediums: in-depth investigative journalism and community storytelling in print, supplemented by daily digital updates via newsletters and online platforms. The model has proven successful, especially in an era where legacy newspapers are cutting print days or shutting down entirely.

“We got lucky,” John says. “We built a model where we print once a month but have digital products that provide daily updates. Other newspapers are now trying to cut down their printing days because people just aren’t reading physical papers on a Tuesday anymore.”

Lessons in Leadership: The Role of an Owner-Operator

John emphasizes the importance of hands-on leadership, especially in an industry as complex and ever-changing as local news. He believes that news entrepreneurs must understand every aspect of their business—from editorial to advertising, from print logistics to digital strategy.

Over the past year, John has taken a direct role in troubleshooting and improving key aspects of Community Impact’s operations. First, he spent time working inside the company’s printing facility, rebuilding the culture and refining processes. Then, when a leadership change occurred at their Dallas branch, he stepped in personally, driving to Dallas weekly to ensure the transition was successful.

“In our business, owner-operators are critical,” John says. “I don’t believe you can just delegate everything and expect it to run itself. This industry is tough. If you’re not in it, you won’t understand it.”

Investing in Print: A Bold Bet That Paid Off

Perhaps one of the most surprising aspects of Community Impact’s success is its investment in print at a time when most media companies are abandoning it. In 2016, John made a bold decision: instead of outsourcing printing, Community Impact would build its own state-of-the-art printing facility. The $13 million investment was risky, but it gave the company complete control over production quality and costs.

The timing couldn’t have been better. Around the same time, the Austin American-Statesman shut down its printing operations, leaving experienced press operators out of work. John was able to hire some of them, ensuring a seamless launch for Community Impact’s in-house printing operation.

“People think print is dead,” John says, “but when we send our papers out, people actually read them. They trust them. And our advertisers see results.”

The Challenges of Expansion and Retrenchment

While Community Impact has seen tremendous growth in Texas, not every expansion has been successful. In 2020, the company launched editions in Phoenix, Nashville, and Atlanta. Then the COVID-19 pandemic hit, and John had to make a tough call—pull back and refocus on Texas.

It was a humbling experience, but ultimately the right move. “Scaling a news business is hard,” John admits. “We learned that we needed to double down on what we do best and focus on markets where we have the strongest foothold.”

Today, Community Impact continues to grow within Texas, with new editions launching in cities like Boerne and New Caney. The company remains mission-driven, prioritizing local journalism over profit maximization.

The Secret to Community Impact’s Loyal Following

Perhaps the most remarkable aspect of Community Impact is its devoted readership. Residents eagerly anticipate each edition, and the brand has become a trusted household name across Texas. John attributes this loyalty to the company’s unique editorial approach—being a “sage” rather than a “watchdog.”

“Our goal is to make people feel good about where they live and work,” he explains. “We report the news fairly, with empathy and curiosity. Even when we cover controversial topics, we focus on solutions rather than sensationalism.”

A particularly amusing example of this brand loyalty occurred when John was involved in a minor road rage incident. When the irate driver spotted the Community Impact logo on his shirt, her entire demeanor changed. “She went from yelling at me to saying, ‘Oh, I love that paper!’” John laughs. “It was wild. My kids saw it happen, and I think that moment really showed them why Community Impact matters.”

What’s Next for Community Impact?

Looking ahead, John is focused on further strengthening Community Impact’s digital offerings. He’s exploring new content management systems, email platforms, and reader revenue models, including a potential membership program.

“I’m spending a lot of time learning about technology—CMS systems, email marketing, AI,” he says. “I want to make sure we’re set up for the future while staying true to our core mission.”

John also sees Community Impact as a multi-generational business. His daughter, currently studying journalism at the University of Texas, has expressed interest in joining the company—a full-circle moment for the family.

Ultimately, John’s vision remains steadfast: to make Community Impact the most trusted and widely read local news organization in Texas. Given the company’s track record, there’s little doubt he’ll achieve that goal.