I wouldn`t be too quick to jump the print ship just because major newspapers are cutting back. The major newspapers have a bad business model to begin with and they are steadily alienating readerships with their editorial points of view.
If you have a niche you can sell advertising for your publication. You just have to find the right advertisers. There are regional publications in my area (one that caters to people that live along a certain highway between two cities-how`s that for a niche?) and they run very small operations but bring in ad revenues in the low 7 figures for a quarterly publication. The trick is matching advertisers with readers.
One trick is to find publications that most resemble yours and then get their rate card. You can then see what you can charge.
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