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How to Start a Publishing Company: 2024 Guide

You can start your own publishing company with these simple steps:

• Develop a business structure (usually an LLC)
• Choose the name and location for your company
• Register your business
• Obtain your EIN and set up a business banking account

Want more detail? Keep reading. This article is detailed, informative, and easy to comprehend — even for someone who was as legally inept as I used to be.

• If you should set up a publishing company
• The benefits of setting up a publishing company
• How to set up a publishing company

Table of contents

• What does a publishing company do?
• Should you start a publishing company?
• Benefits of Starting Your Own Publishing Company
• When should you start a publishing company? 
• 6 Steps for Starting a Book Publishing Company
• Setting up a Publishing Company with MyCompanyWorks
• WCU’s Publishing MA Program
• And don’t forget to check out my podcast where I spoke with my lawyer about publishing business structure.

A publishing company sells and distributes books (and magazines, newspapers, digital content, etc.) They may contribute to the editing process to ensure their published content is up to snuff. The publishing company decides what kind of marketing (and where to advertise) will best help sell their books.

Starting your own book publishing company is a crucial step in boosting your author brand, selling other people's books, or protecting yourself and your assets.

For many people, establishing your own company can be confusing, tedious, and downright painful. To be honest, it’s a lot of work.

Thankfully, this step-by-step guide will help you determine if you should start a publishing company and show you how to achieve such a daunting task.

Let me make 2 disclaimers:

• Although I have a lot of experience setting up LLCs, including my own book publishing company, I am by no means a lawyer or CPA and cannot speak on their behalf. If you have any questions, it is best to seek legal advice before moving on. This article does not constitute legal advice and should not substitute for the advice of an attorney.
• Some of the paperwork and legal steps listed in this article are pertinent to the US only. Each country will have its own laws for setting up such things. Many of the steps and recommendations below will be relevant to your startup, no matter which country you’re in.

There are 3 primary reasons to start a publishing company:

• Financial protection

Of course, there are many reasons to start a publishing company, but these are the big three. For example, if you want to publish other people’s books, you can do that without an LLC. But if you do establish an LLC, you are protected and legitimate.

With today’s publishing platforms, you don’t have to start a publishing business to publish your own work or even other people’s stories.

However, starting a publishing company has several advantages. Here’s a more detailed list of reasons you may want to establish your own publishing business:

• Conveys professionalism and expertise
• Protects yourself, your work, and your personal assets in case of a lawsuit
• Manages of your intellectual property
• Allows for certain tax write-offs
• Maintains control over your work
• Gives you access to more than one Amazon KDP account
• Shifts your mindset from a hobby writer to a business owner
• Fulfills your dream of being The Boss/CEO/Founder of your own publishing company
• Establishes a legal entity to contract co-writing and licensing properly
• Facilitates future opportunities to publish books by other authors

How do publishing companies make money? Publishing companies make money by taking in book sales, minus the royalties they pay out to authors and other artists. Royalties are 100% negotiable.

There are 6 excellent benefits to starting your own publishing company:

• Tax benefits, write-offs, and more
• Liability protection
• Increased credibility
• Ability to expand your brand
• Double the number of KDP accounts
• Co-writing and licensing

Of course, I could go on and on about the benefits — like being your own boss. But I’ll just take you through the main benefits, then along to the step-by-step process.

1. Tax Benefits, Write-Offs, & Wealth Building

Yes, there are tax benefits to having your own book publishing company. When April 15th approaches, you can write off a surprising number of business expenses.

A company helps you differentiate between your personal income and business income. All those business write-offs may save you a lot of money during tax season.

If you have your own company, I recommend getting a tax accountant (the fee for whom is a tax-deductible expense) to help prepare your taxes. During the year, an accountant can help you make the best choice in certain situations to take full advantage of the tax code.

The most common tax-deductible business expenses:

• Salaries, wages, and contract labor
• Most insurance policies
• Vehicle expenses
• Office internet
• Supplies and office expenses
• Business meals
• Advertising and marketing
• Accounting fees
• Interest on the business-related debt
• Conferences
• Rented office space
• Home office
• Property purchased for business use
• Depreciation on that property

Saving money on taxes isn’t just about short-term gain. The benefits of establishing a publishing company allow you to see this business as an opportunity to build wealth and plan for retirement.

2. Liability Protection

Starting your own publishing company gives you a certain level of liability protection. If someone sues you for writing-related reasons and you have an LLC, they cannot attack your personal assets — only the company’s assets. There are some cases of copyright infringement though, where the author would be held liable for their actions, but in total there is much more protection for such things.

If you don’t have a company and your book, product, or service gets sued, then your personal finances and a public record will be absolute fair game.

Although it’s rare, lawsuits happen.

Vocabulary time: LLC stands for Limited Liability Company.

Ask me about my own experience getting sued. It was a false claim from a competitor looking to knock my book off the shelf. The world is full of jerks who are willing to lie and cheat the system (shocking, I know).

Starting a company gives you legal liability protection and distinguishes between the business’s finances and your personal finances. The courts, or collection agencies, would not be allowed to come after you — only your company’s assets.

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3. Increased Credibility

When you start your own publishing company, it gives you increased credibility. Even though self-published authors are legitimate, having your own LLC sounds more legit and offers you and collaborators more legal protection.

Sharing that you’re a self-published author can be intimidating — you might have a fear that others will hear that you self publish and assume you couldn’t get published by a “real agency.” 

But sharing that you have your own publishing company, through which you publish your books, gives you a sense of legitimacy.

Credibility isn’t just important for your sense of accomplishment, though. Collaborators, authors, and business partners may also be more likely to work with an established publishing company.

4. Ability to Expand Your Brand

Starting your own publishing business improves your ability to expand your author brand .

Author branding is convincing someone to read your book over anyone else’s. This involves establishing credibility, proving your creativity, and maintaining a professional image that doesn’t distract from those books you worked so hard on.

This process is related to book positioning: convincing someone that your book is right for them. Good author branding makes book positioning easier and vice-versa.

Also, having a publishing company can make it easier to collaborate with other authors . Each author has access to each other’s audiences, expanding both author brands.

Having a publishing company not only adds legitimacy to your career but also allows you to maintain control over your book marketing and lets you expand your author brand in so many other little ways.

5. Double the Number of KDP Accounts

Another added benefit to starting a publishing company is that you’ll be able to create another Amazon KDP account and remain within your rights.

Amazon's Terms Of Service (TOS) state that an author can only have one KDP account.

However, the cool part of owning your own publishing company is that your company would have its own EIN and bank account, which allows it to open its own KDP account within the TOS of Amazon.

So the first account is your personal account, and the second one is the company’s publishing account. Two accounts come with the added benefit of increased author pages through Author Central, and therefore more exposure and the use of more pen names .

6. Co-writing & Licensing

Starting your own publishing company lets you co-write with another person or license another individual’s work while maintaining legal protection, liability protection, and legitimacy.

Going through a publishing company is the preferred method of contracting with others to bind with legitimate operating agreements legally. So it’s good to have your own company.

Having a publishing business becomes your platform for licensing and contracting future opportunities, such as co-writing or publishing someone else’s work.

Keep this in mind for later when we discuss naming your company .

You should start a publishing company if you have over $2,000 in book sales, want to protect your personal assets, want to publish other people’s books, and/or want to take full advantage of the US tax code.

I'll be real with you — not everyone should do this.

If you're just starting off or still see writing as a side gig or a hobby, then don't add the extra steps of starting a company to your already-busy schedule. Instead, focus on writing your book and nailing your marketing.

If you meet any one of the below requirements, I recommend you create a publishing company:

• You make more than $2,000 a month in book sales.
• You write in technical areas or health areas that could put you at risk of legal action.
• You want to publish other people's books.
• You're selling more than just books, such as courses, physical products, etc.
• You're an American citizen, but you live outside of the US and want a base of operations.

If you don’t meet any of these requirements, I recommend not starting your own publishing company.

So you've decided this is what you want to do. Now it’s time to actually start your own business!

Here is a step-by-step guide for starting a book publishing company:

• Evaluate your business goals.
• Develop a business structure.
• Choose a name for your business.
• Choose a location.
• Make it official.
• Grow your team.

That gives you a good idea of what to expect, but let’s dive into the nitty-gritty. I’ll detail each of these 6 steps below.

Step 1 : Evaluate Your Business Goals

The first step in starting your own publishing company is to evaluate your business goals. You need to figure out what your business’s point is — a business plan, of sorts.

A lot of you reading this want to publish your own books through your own publishing company. That’s great. You evaluated your business goals. But go beyond that. Write down a list of goals you can reach for.

For many of us, the goal is to provide extra legal protection and tax breaks.

For some, the goal is to encourage author collaboration or co-author ventures.

It’s smart to estimate what kind of income you plan on bringing in. This helps you plan ahead and lets you compare end-of-year income to expected income.

Ultimately, where do you see your publishing company headed in the next 5-10 years? It’s nice to have business goals set in place so you can aim for specific goals.

Step 2 : Develop a Business Structure 

Before you can start creating your own ebook or book company, you need to decide which type of business structure you would like to make.

There are many different types of businesses. Each has its own pros and cons.

• Corporation : A corporation is a group authorized to manage the company as a single entity. This includes stockholders, a board of directors, officers, company bylaws, etc. Establishing a corporation (S-Corp or C-Corp) requires a great deal more formalities and paperwork than the other items on this list.
• Sole proprietorship : This is a business owned and operated by a single person under their personal Social Security number rather than an EIN (Employer Identification Number). This is the simplest business form, though not the safest. The individual is personally liable in lawsuits. It’s wiser to get the liability protection of an LLC.
• Partnership : This is when multiple people (or entities) officially agree to manage/operate a business together. 
• Limited Liability Company : A Limited Liability Company (LLC) protects assets like a corporation, but with the pass-through tax benefits of a partnership or sole proprietorship.

Most self-publishers end up creating a Sole Proprietorship or an LLC. Here’s a great article that discusses in more depth the difference between a Sole Proprietorship vs. LLC .

In the end, the Limited Liability Company (LLC) is the best one for most book publishers.

An LLC is more flexible in how profit distribution and ownership are organized. It combines the features of a corporation and a sole proprietorship.

A corporation is a lot more rigid in its rules of operation than an LLC.

The controlling document in an LLC is called the “operating agreement.” You may write up this agreement in a myriad of different ways to suit your needs.

For example, your operating agreement may be where you create rules for how money comes in and goes out or for “successor members” (anyone who takes over after you).

An LLC has another benefit: It allows you to tax it as a Sole Proprietorship, Partnership, or S-Corporation. Basically, an LLC is the best of all worlds and fits nicely in the self-publishing business structure.

Chances are, your favorite authors or bloggers often use an LLC to protect their brand and business.

Before you decide which is best for you, do some additional research on each.

To find out more about each type, you can check out the IRS’s resource page on business structure .

Should I set up an S corporation?

Yes, you should set up an S corporation. In other words, you should charter an LLC, then file paperwork that tells the IRS to treat your LLC as an S corporation.

• Business charter — A corporation and a Limited Liability Company (LLC) are business charters issued by state governments and may have state income tax implications.
• Tax election — Subchapter S or an S Corp tax election is paperwork you file with the IRS for the unique tax treatment of a corporation or an LLC.

A business charter and tax election are tools to protect and preserve the wealth you create from your writing. The takeaway is that the S-Corp election would be something you do after you charter your company.

Authors should elect to have their LLC treated as an S Corporation. This is part of a broader tax optimization strategy and wealth creation. Instead of your company paying income tax, the company’s net income passes on to its shareholders to claim it on their personal taxes.

Yet you are still provided with liability protection.

Step 3 : Choose a Name for Your Business

It’s critical to choose a good name for your business that clearly says what you’re about, doesn’t potentially confuse your audience, and isn’t already trademarked or used in your area.

You may consider using your name or your genre, like “Chesson Publications” or “Space Pants Press.” It is a good idea to have backup names ready in case your first choice is not available.

There are 3 things to consider before choosing your business name:

• Make sure it’s not trademarked by anyone.
• Check that it’s not already used by someone in your state if you’re in the U.S.
• Do not use the words “corporation” or “inc.” unless you set up your business as a corporation.

If you’re setting up a Sole Proprietorship, you’ll likely file a DBA (doing business as), also called a “trade name registration” or “fictitious name.”

The good news is that the name availability is state-specific. This means that even though a company called “Intergalactic Press” is registered in New York, you can still use the name if it hasn’t been registered in the state you use to file.

How do you check if your company name is taken? Check to see if your company name is taken by going to your respective state’s name search, by typing “Secretary of State business name search (Name of the selected state)” into Google.

The desired website is often the first result. Start hunting to see if your potential business name is available.

Step 4 : Choose A Location

In setting up the business, you're going to need to choose the State you set up the company in and the actual place of business.

The State of the Business

States issue articles of organization for LLCs (articles of incorporation in the case of a corporation). The first step in location selection is the state of the organization.

For those thrifty business people looking for tax breaks or lower annual registration costs, you may have heard about incorporating in states like Wyoming and Nevada .

A word of caution: The state where you reside and do most of your work expects to be paid income tax . If you live and work in California, setting up an LLC in Nevada doesn’t get you out of California’s income tax.

In fact, doing an out-of-state charter can cost you more money as most states need you to register “foreign entities” to legally do business in the state. Some states are more lenient than others.

Remember, the primary purpose of setting up an LLC is to have the legal separation and protections that come with it. Don’t blow that by not having the appropriate registrations in the state you actually live/work in.

Place of Business

Now that you know your business state, you need a physical place of business where work actually happens.

When setting up an LLC, many self-publishers will make their personal home their place of business since they need a physical place of business. However, this may cause problems down the road.

The address of your business has to be a physical location where legal documents can be served. If you list your home as your place of business, your private information will become public.

In some states, while the owner’s name will be confidential, there must be a registered agent on the public record. You can be your own registered agent in most states, but your own name will be on public record along with your address.

Don’t list your personal home address as your place of business. Do the following instead:

• Rent a Physical Location: Renting a physical location may be nice if you actually need to go somewhere to do your work — for example, if your personal home is a distraction. I don't need to explain that renting is very costly and not a viable option for most of us.
• Get a UPS Mailbox: Most states do not allow you to put a P.O. Box number on the application. Luckily, you can get a UPS mailbox number that looks like a regular address. By choosing this option, you will need to show up in person to set up the mailbox. Once you set up your mailbox, you can have them forward your mail to your real address.
• Use A Registered Agent: Just about every state has registered agents that will act as your office for you. There is a fee associated with this, but it usually includes setting up your LLC as part of the service. This will eliminate your name as the registered agent being on the public record.
• Set up a Virtual Office: Personally, virtual offices are my favorite option. They’re professional offices that give you a specific mailing address, collect your mail, forward it to you, and can be your Registered Agent (an extra level of personal protection). Furthermore, most virtual offices will give you a 1-800 number and record and send your voicemail to you electronically. This option is excellent for those who travel or reside in a state with extraordinarily high business tax rates. You can set it up from your home in a different state or from a foreign country — such as Sri Lanka, as I did.

Step 5 : Make It Official 

Now that you’ve identified your business goals, business structure, business name, and business location, it’s time to make this official!

Below are 7 quick steps to making your new business official:

• Register your business.
• Obtain your Employer Identification Number (EIN).
• Set up a business bank account.
• Set up an accounting system.
• Register your domain name.
• Create a publisher's KDP account on Amazon.
• Schedule an annual business meeting and take minutes.

1. Register your business.

You have 2 main options on how to register your business:

• Do all the required registration and paperwork yourself . Each state has different requirements, so I can’t walk you through those specific steps.
• Or keep it simple and use the services like My Company Works or GovDocFiling to get your publishing company started fast and make sure it’s done right.

And just like that, you could be a President/Owner/Founder of your very own small business!

How much does it cost to start a publishing company? Costs to start a publishing company vary from state to state. Generally speaking, the lowest fees are $50, and the highest is $800. There are usually annual fees due each year. If you plan to use a registered agent, then expect additional fees for those services. Most authors see somewhere from $200-$500 a year in fees.

Some authors need to maintain extra levels of confidentiality — perhaps because of the genre they write in or their personal preference.

Certain states like Wyoming keep member information confidential. Only the registered agent is public, so you could set up a company there and use a registered agent.

In some cases, you may need to create two LLCs to form a legal barrier between you and the public. This doubles the cost of starting a business, but it might be necessary to give you the confidentiality you desire.

Now that you've become an official business in the eyes of the government, it's time to take specific actions to ensure you're a legitimate business. You need to do certain things to get the most out of your publishing company and ensure its legitimacy.

2. Obtain your EIN.

An Employee Identification Number (EIN) is used to identify a business entity. Also known as a Federal Tax Identification Number, an EIN is a 9-digit number that the IRS uses during tax season.

Upon registering your business, you'll get an EIN — like a Social Security number for businesses. When you have an EIN, ensure the documentation for any accounts that you've set up are associated with this number.

3. Set up a business bank account.

To keep your personal income and the business’s financials separate, you need to have a business bank account. Separation of personal funds from business funds is essential.

You may set up an account with a traditional brick and mortar bank or an alternative online banking service like PayPal.

4. Set up an accounting system.

Whether you hired a professional accountant or are keeping detailed Google Sheets, you have to keep track of your financials from the very beginning. And it has to be perfect. All those I’s dotted and those T’s crossed.

Two popular options for accounting software include Quickbooks and Wave Financial . 

5. Register your domain name.

People need to be able to Google your business. You don’t want those leads to go to waste. That’s the main reason you need to register your domain name — a URL.

A professional author website is the best way to tell people about your business and your books.

Official social media accounts also help like Instagram , LinkedIn, Facebook , etc.

6. Create a publisher's KDP account on Amazon.

If you've published books before on your own personal account and you want them to be in the business' account, then you need to do one of two things:

• Change your personal account to the business' by changing the necessary information in your settings to reflect the company (address, EIN, etc.).
• Make a new KDP account and move your books to it.

As per Amazon's TOS, a person is not allowed to have 2 accounts. But don't worry. You have an account, and your business has an account. Those are 2 accounts you control, which is still in compliance with Amazon’s TOS.

7. Schedule an annual business meeting and take minutes.

If you're an LLC or Corporation, you must have at least 1 annual business meeting a year and ensure you document it and place it as your minutes.

Without this, your legitimacy as a company wanes.

For example, my wife and I will schedule a dinner once a year on the company's dime, have a business meeting, and take detailed minutes.

8. Publish a book.

This is the whole reason for a publishing company! Imagine how sweet it will be when you publish that first book.

Whether it’s a children’s book , a biography , a mystery , a short story , an ebook only, or print-on-demand, you’re now a part of the publishing industry.

You need to purchase an ISBN (International Standard Book Number) for each work to sell books. An ISBN is an internationally-recognized 13-digit number that is supposed to simplify sales and distribution. Bowker is the official ISBN agency for the US and Australia.

Step 6 : Grow Your Team

You're now a full-fledged publishing company! With your business made official, it's time to grow your team. (If you intend to be the sole employee of the company or the only author represented by the company, then you’ve already finished the last step.)

Who do you need on your team? Here are some possibilities for expanding your publishing company beyond just yourself:

• A dedicated accountant
• Other authors you can now publish
• Freelancers for cover art , formatting, editing , web design, etc.
• Marketing or social media specialists to maintain your online presence

Look for authors whose works you’re interested in publishing. You can even split royalty through your new, legitimate publishing house.

If your newly minted publishing company manages co-authored projects, you'll have an extra challenge ahead of you.

Calculating royalties and dividends owed can be a hassle — especially if those need to be split up in any way. However, the good folks over at Draft2Digital have created a solution for that exact situation.

While PublishDrive led this charge with PublishDrive Abacus , Draft2Digital is our choice for book distributors, and they also have this revolutionary program in the publishing world. You can read their announcement here .

This program allows the authors to:

• Calculate royalties between co-authors
• Provide each contributor with detailed reports
• And streamline the entire accounting process

This program is geared entirely towards publishing groups that publish on Amazon and Kindle Unlimited.

In order to be part of the royalty split program, your books do have to be enrolled on Draft2Digital, even for platforms like Amazon. But the headache it saves you could easily be worth the cost of the commission D2D takes.

See also our review of Draft2Digital .

If going through all the steps above to form your publishing company sounds like a lot of work, you can significantly simplify the process (for an added fee, of course) with a company like MyCompanyWorks , which is a business that helps you set up your own business.

While MyCompanyWorks doesn't take all the work out of the process (you'll still have to do things like visit your bank to set up a business bank account), it does make the process a lot easier.

Here is a brief walkthrough to get started:

From the homepage, you can hover over Order Now then select Form an LLC .

Then you select the state the you want to register under, as well as the desired package.

MyCompanyWorks also has a lot of additional services, some of which are useful (like “Prepare S-Corporation Election”).

Next, you begin inputting your information. I won't screenshot everything here (because it's a lot), but it includes your contact info, your name for the LLC, the list of people that manage the company, and the information needed to get your Federal Employer Identification Number.

MyCompanyWorks walks you through the entire process easily, and before you know it, you'll have a business ready to go!

Resources For Setting Up a Publishing Company

Check out these fantastic resources for setting up your own publishing company. I personally use or have used most of these.

Setting up an LLC, Corporation, or Sole Proprietorship can feel daunting. If you're like me, then you probably conduct plenty of research before carrying out such a monumental task.

Before I jumped into setting up my LLCs, I did a bunch of research.

Get a Master’s degree in Publishing with this Publishing MA program.

If you're looking to create a legitimate company publishing many books and want to take yours to the next level, then perhaps a formal education in publishing is right for you.

Western Colorado University offers a full-fledged Publishing MA program , one of the only such programs to embrace indie publishing.

It is a 1-year program (from July to July) and only requires you to spend two weeks in the gorgeous Colorado mountains while the rest of the course is taught online.

It is equally balanced between traditional publishing and indie.

Students will engage in innovative projects, such as:

• Developing the concept for an anthology (which pays pro rates)
• Soliciting submissions
• Reading the slush pile and choosing the stories
• Issuing contracts
• Editing pieces
• Designing and producing a book and its cover
• Publishing that book
• Making a marketing plan

As the final project, students will select a public-domain classic, acquire the text, and work through every stage of producing and releasing the book via a mid-sized publisher (WordFire Press), which will list their name on the copyright page.

The program is run by the award-winning and legendary science fiction author, Kevin J. Anderson, who personally teaches all the courses. Kevin has 56 national or international bestsellers and 23 million copies in print in 30 languages.

His publishing company, WordFire Press, has released nearly 350 titles from 95 authors in ebook, trade paperback, hardcover, and audio. He is a highly qualified publishing professor.

If you are interested in taking this program, you need to act fast. The program fills up quickly every year, so don't delay!

More Info on Starting a Publishing Company

Need more info? Here are a few articles I found useful when I was doing my original research on starting my own publishing company:

• List of Resources for Setting Up a Publishing Company : This quick guide is great for the terminology and list of resources in each of the steps.
• How to Form an LLC by WSJ : Who better to give you more information than the Wall Street Journal in setting up your own company?
• 6 Mistakes to Avoid When Setting Up Your Corporation or LLC : What more can I say from that title than make sure you don't make any of these mistakes.
• Pat Flynn's Personal Details on Setting Up His LLC : Pat Flynn of SmartPassiveIncome.com does an excellent job explaining why and how he did his LLC setup.
• Nuts and Bolts: Nitty-Gritty Details, Incorporating, and Taxes : This one is my favorite.

Are you ready to start a publishing company?

With a few hundred dollars and some spare time, you are ready to start your own publishing company and establish legitimacy, legal liability protection, and valuable tax breaks.

Thanks to services on the Internet, it is easier than ever to set up your own book publishing LLC or Corporation.

Although annual costs persist each year, the benefits of starting your very own publishing company will quickly outweigh this.

Better taxes, increased personal security, and more publishing capabilities were the main reasons I started 3 different LLCs to support my entrepreneurial habits.

Now that you know how to start your very own publishing company , get started and become a book publisher today!

If you have any questions along the way, don’t hesitate to ask me. Leave a comment below to tell me what you found most helpful.

But do remember that I am not a lawyer — just an experienced entrepreneur.

Dave Chesson

When I’m not sipping tea with princesses or lightsaber dueling with little Jedi, I’m a book marketing nut. Having consulted multiple publishing companies and NYT best-selling authors, I created Kindlepreneur to help authors sell more books. I’ve even been called “The Kindlepreneur” by Amazon publicly, and I’m here to help you with your author journey.

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155 thoughts on “ How to Start a Publishing Company: 2024 Guide ”

Publishing companies often have a symbol for their company. Since they offer a service, this begs for trademarking the images used by the company.

Do you have suggested links or a blog piece on trademarking?

BTW: Good, solid content and suggested strategies on starting a publishing company. I appreciated your work; you are my “pathfinder!” =rds

Thank you for this information. I created an LLC for my coaching business and plan on publishing under the same LLC vs having two companies. That being said, my business isn’t structured as a publishing house. Will that be an issue?

It shouldn’t be.

I appreciate the wealth of knowledge in this article. I do have one question though.

If someone creates a new llc for their publishing company does that mean when creating the new kdp account we can avoid using our own name and instead only use the business name?

Dave, how do you move your books to a new KDP account? Wouldn’t you have to republish?

I’ve changed everything in my personal account to my business tax and business info, in the meantime, both on KDP, Smashwords, and D2D.

Is there a legal way to transfer ownership of books from ME to my business?

Yup – unpublish and republish. Although a cleaner way is to switch the current account info to the new account, keeping all your books there, like it sounds like you did. As for legal, I made mark in my LLC book that the ‘assets’ were transferred over to the company. (Again, not legal advice nor am I a lawyer).

Fantastic and valuable article. Thank you so much. I will definitely have to go to the LLC route. Thankfully, I have a bit of reading to do before I have to get busy with that.

I already have my company name, domain name, website, and logo, I just need to handle all the legalities of it.

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With the advent of the Internet, this business industry has grown with further progressions. However, running a business isn’t enough to make profit. You always require knowing the tweaks and tricks of running an effective business. For the beginners, simple business plan samples would help you to progress in this field with flying colors.

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• Attain the targeted circulation level.
• Control the costs when spending maximum on the subscription marketing in just one year.
• Monitor the response rates of the media executions.
• Follow-on the marketing of the book titles in the first half of the year or the first year.
• Attain the targeted advertising sale revenues.
• Quality editorial contents in every issue.
• Make the production and the distribution dates in the timely fashion for every issue.
• Entry Barriers are negligible or less
• SEO happens to be another factor
• Inclusion of professional outlook
• The tax benefits
• Publishing companies also provide democracy to the writers.
• Advice from experts
• Learning the laws
• Selecting the name and buying the domain

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Your Writer Platform

Build your platform. engage your fans. sell more books., your author business plan: a framework for the creative entrepreneur.

by Kimberley Grabas

Does the thought of writing a business plan make you wince?

You’ve been struggling valiantly through most of the non-writing, left-brained activities that have been thrust upon you as a modern writer – do you really need to go through the formality of crafting your “executive summary”, “sales forecasts” and “market analysis”?

Well…yes. (sorry)

But if you’d prefer to skip the spreadsheets in favour of a more “writer-friendly” planning process – because deep down you know you could use a bit more direction to move your writing career to the next level – you’re in luck!

I’ve designed this business plan framework with the creative entrepreneur in mind.

Yep, it’s still a business plan.

But I’ve tried to soften the corporate jargon, as well as give you ideas as to how you can use each section to grow your writing career.

I’ve also created a free downloadable workbook to guide you through the process and that you can complete at your own pace:

Click the image to download your free 30-page Author Business Plan workbook:

Prioritizing Your Business Plan To Get The Most Out Of Your Writing Career

It’s time to overcome your resistance to the idea that, as an author, your job is no longer just to write (if it ever was).

If you want to turn your passion for writing into a business, you’ll need to have a solid and strategic plan in place.

And a b usiness plan is simply a guide to what you hope to accomplish, how you plan to meet those objectives, and your financial projections based on these efforts.

It’s a field guide to your writing business – that you navigate with your readers in mind.

Here’s what you can expect a thorough business plan to help you accomplish:

It will help you to

• clarify and articulate a clear vision for your writing career, which will help guide your business actions and decisions
• nail down the specifics of what you need to get done to move your business forward
• share your strategies, priorities, and specific action points with others (agents, assistants, collaborators, or even your spouse)
• recognize and filter out the distractions, so you can concentrate only on those activities that will help you grow
• determine future needs ahead of time (software, skills, tech, or other resources) so that you can plan for the cost or time expenditure
• beat inertia and take confident action on those things you’ve determined will move your business forward
• notice opportunities to reward yourself for both small accomplishments and big wins

One of the most important (and often ignored) steps to effective goal setting and increased productivity, is to write your goals down and review them daily . This can be a game changer.

By dedicating the time to write your business plan – and review it frequently – you can change the trajectory of your writing career.

Developing Your Author Business Plan: The Key Components

Whether you are working toward a traditional publishing contract or self-publishing, a carefully crafted business plan will help you establish a plan of action, and guide how you will allocate your (often limited) resources.

A. BUSINESS VISION + AUTHOR BRAND

1. Mission Statement (Message)

Clarify your business values and vision. Define why you write and get very clear on the essence of your work–what problems are you solving or what desires are you satisfying? What is your promise to your reader and how will you deliver on that promise? (You can also include a “vision statement” that inspires you, and is a reminder of your purpose and your commitment to your writing career.)

2. Your Ideal Reader

Identify and define the group of people whom you wish to reach. How do they see themselves, and how does your work fit with that perception?  Who already ‘speaks your language’ or conversely, whom does your work speak to? We’ll be digging deeper into this in a later section of the business plan, so the information you gather will help to create a succinct description of your ideal reader here.

Related Content:  Identifying Your Target Audience: The Top 8 Mistakes Writers Make

3. Brand Personality and Culture

What is your brand story and personality? What do you want people to feel or experience when they read your book, a post on your blog, or see you speak at an event? What tone, colors, and visuals characterize your writing, and how does your branding reflect the purpose or message behind your work? What values, standards or best practices will you adhere to? What can your community of readers consistently expect from you in terms of your style, authenticity, voice, and professionalism? Make sure that your branding is relevant to the audience you seek, distinct and meaningful.

Related Content:  Discover and Build Your Author Brand

4. Career Goals, Objectives, and Expansion Plans

Many people do not even think of goals, and of those that do, very few write them down. Forbes reports a remarkable 10-year study about goal-setting carried out in the Harvard MBA Program.  Those students who wrote down their goals accomplished significantly more (i.e., earned on average, 10 times as much as the other 97 percent of the class combined). So write down your goals and objectives. Make sure they’re both S.M.A.R.T and what you really want. Are you willing–and able–to sacrifice the time and effort required to achieve what you’ve outlined? How will you determine your success?

B. BUSINESS DESCRIPTION + PUBLISHING PLAN

1. Your Difference

This is your secret sauce or unfair advantage. Describe who you are as a writer, and how you will portray that uniqueness to your audience. How do you solve their problem or desire and why is it valuable to your readers? The goal here is to answer the question in your reader’s mind, “Why you?”. What sets your work apart from others in your genre or niche? Develop your “brand story”.

Related Content: How to Build Your Brand From Scratch (And Why You Need To)

2. Who Do You Serve

Describe your target audience (demographics, psychographics), and how you can help meet the needs, wants, and desires of that specific group. Often writers make the mistake of working on their projects in a vacuum – with no feedback, input, or even acknowledgment of the reader. Another conundrum authors face, is writing in multiple genres, which makes building a community even more challenging. Note if either (or both) of these are concerns you face, and how you will address them going forward.

Related Content:  Thinking About Writing in Multiple Genres? Here’s What You Need to Know

3. Production

In this part of your business plan, include your writing, editing, and publishing schedule. How many words per day will you write, and at what times? If editing, how many hours per week will you devote? How many books do you plan to publish (and launch) this year? How often will you post new content to your blog or social media? Also note your genre focus, project lengths, and additional projects (workshops, courses, presentations, etc.) you plan to produce per year.

4. Business Structure

What is your writing business structure (sole proprietor, publishing company, or LLC, for example)?  Are you traditionally published, self-published, a hybrid author, or not yet published? Describe the components of your business, like books (digital, print, audio), courses, seminars, workshops (in-person/virtual), speaking, and so on. Is your business primarily online or offline?

5.   Business Tasks + Schedule

It’s important that you treat your writing business as a business . So make a list of regular tasks (everything from sales tracking and accounting, to editorial calendars and words written per day), and add them to your calendar, Asana , your day planner, or whatever system works for you.

6. Distribution Channels

You’ve defined your audience, so now you need to determine how they want to be reached. Where are they already and what are other ways that they will find you? Think social media, email, traditional media, video, podcasts, conferences and events, website, clubs, Amazon and other retailers, and so on.

Click to download your free 30-page Author Business Plan workbook :

C. MARKET ANALYSIS

1. Bestselling Authors/Comparable Titles in your Genre or Niche

Identify bestselling authors, top bloggers, and other influencers in your niche or genre. Look for those that already have the audience you want to reach (search through social media, relevant keywords, Facebook, and other groups). Who are the movers and shakers? The up-and-comers? Start making a list, including their contact info, website, and email. (These people may also become your partners and allies in the future.)

2. Pricing Models

What pricing model(s) are currently being used in your genre or niche? What are readers used to paying for books, products, or services similar to yours?

3. “Competitor” Strengths and Weaknesses

Choose 3-5 authors from the list you made in section C. 1., and break down their strengths and weaknesses. How do they reach and promote to their audience? Are there any strategies that many of your competitors seem to use (for example, are most of them using email marketing strategies)? What are they doing well and what can they improve? What can you add to the mix that draws upon your unique skill set and brand? Use this knowledge to craft your own, well-rounded strategy.

4. Trends and Opportunities

Note current events and what’s new and noteworthy in the publishing world. Note predictions and future trends that may impact your writing or bottom line. Are there any collaboration or partnership opportunities that you wish to pursue, both within your topic area and with industries or businesses that reach the same audience as you?

D. AUDIENCE RESEARCH

1. Identify Your Ideal Reader

Knowing your target audience has come up several times in this business plan–and for good reason. It is absolutely vital to the growth of your writing career to have a firm understanding of the audience you wish to reach. This section of your business plan informs the other sections, and it’s where you will get crystal clear on who your ideal readers are through research and data (not through guessing or assumptions). (Follow the link below for instructions on how to create an ideal reader persona.)

2. Understand Their Needs and Desires

Your goal is to understand and articulate your readers’ problems or desires better than they can themselves. But remember, this is their most pressing problem or desire, not yours.  Don’t try to create desire or interest where there is none. Outline how you will share your work in a way that encourages people who are already interested, to take action. (To gain a deeper understanding of your audience, spend time and ask questions of your “real” readers, engage in “social listening”, conduct surveys and examine your Google Analytics.)

3. Differentiate Yourself and Your Work

Given what you now know about your target audience, what is the intersection between your unique talents and your readers’ needs or desires? What can they get from you and your work that they can’t get anywhere else?

4. Determine How to Engage With Your Readers

It is much, much easier to create interesting, relevant, and valuable content for your audience now that you know exactly what they are searching for . You can’t possibly develop a marketing and book promotion plan when you have no idea who might be most receptive to your message. How will you learn (and continue to learn) about your readers, but still stay connected to the reasons for creating the work that you do?

E. COMMUNITY AND PLATFORM BUILDING

1. Social Media Plan

What are your (and your readers’) preferred platforms? Where will you place your emphasis and what strategies will you use to develop visibility and interest for your writing? What will you share, how will you create it, when will you share it, and where will you share it, to get the most engagement? (Create a specific plan for each social media platform you’ll engage on).

Related Content:  Social Media Strategy for Authors Plus 4 Tweets to Never Send

2. Email List Building Plan

Developing a responsive email list is one of the most important things you can do to grow your business and stay connected with your readers. What strategies will you implement to grow your list? How often will you communicate with your subscribers, what will you share and what opt-in incentive will you develop to encourage sign-ups? 

Related Content: The Writer’s Guide to Building an Email List

3. Content Strategy

A content strategy is your publishing plan of action for what to create , how to create it, when to create it, and for whom to create it. Develop an editorial or content calendar to map out and keep track of your content plan o’ action. Ensure your “brand story” is woven into the content you share.

4. Speaking, Appearances, and PR Plan

Keynote speeches, personal appearances, and other speaking opportunities all allow you to connect with your readers and fans in real life . Add presentations, interviews, and other appearances you have booked (or plan to book) into your business plan. What strategies will you implement to increase bookings?

5. Reviews, Testimonials, and Endorsements

What steps will you take to encourage reviews (ARCs, email requests, build relationships with influencers, and book bloggers)? How will you gather testimonials and endorsements for your work? Keep in mind that relationships take time to develop, so ensure you include steps to build these connections and goodwill before you ask for something in return.

Related Content: How to Get Reviews For Your Book (Without Begging, Bribing, or Resorting to Subterfuge)

6. Engagement + Exclusivity

How will you ensure your readers feel special? Will you offer special perks, bonuses, and a sneak peek behind the scenes? Or, create a street team or other type of “membership” for your most avid supporters? How is what you have to offer different from other authors in your niche, and how can you add more value? 

7. Networking and Relationship Building

Who are people talking about, sharing content from, and influenced by? What strategies will you use to develop relationships with industry influencers, advocates, and supporters of your work? How do you plan to build connections with organizations, institutions, schools, bloggers, reviewers, businesses, and media outlets? 

F. OFFERINGS + MONETIZATION

1. Your Products and Services

What will you offer to your audience? Books (digital, audio, print, series, bundles), services (speaking engagements, teaching at conferences, and hosting workshops) courses, freelance work, or other products and programs that relate to your work? How will your readers benefit? How will it impact their lives? Given what you’ve discovered about your target audience, will they want, need or desire what you have to offer?

2. Pricing Strategy

What pricing strategy will you employ? Premium, freemium (free + premium), permafree, or discount pricing? Given your goals for your business, will your pricing strategy help you meet your objectives? Does your pricing meet or challenge genre standards? How will your target audience view your pricing? Map out your pricing structure for your books, services, courses or workshops, series, and bundles.

Related Content: Pricing 

3. Collaboration and Partnerships

Affiliate marketing, book bundles, co-writing, and cross-promotion (via email lists) are all great ways to boost your business, visibility, and sales. What methods will you use to develop partnerships and encourage collaborations with other authors?

G. MARKETING STRATEGY

1. Marketing and Promotion

In this section, outline the methods you’ll employ to market and promote your books, products, content, and brand. You’ll want to develop a separate book marketing strategy for each book, as well as an overall strategy that ties current projects together with future plans for your writing career.  

Related Content: 71 Ways to Promote and Market Your Book

2. Resource Commitment

Finding time to write is difficult enough, but your business won’t run itself. You need to schedule time and resources for both the writing side of your business and the marketing side (and then squeeze in family and personal commitments, too 😉 ). How much time, money and other resources are you prepared to realistically commit? 

Related Content:  The Big Question: How Can I Build My Platform and Still Have Time to Write?

3. Launch Strategies

Designing, organizing, and implementing a book launch action plan is not easy. There are a lot of moving parts, so it requires the careful preparation (and execution) of just the right mix of launch activities to propel your new book out into the world. Layered launch strategies (where you use the momentum from one launch to boost the next) can create urgency and excitement, and further establish your brand, message, and authority. What actions will you take to leverage the assets and relationships you’ve established through your marketing activities to promote an upcoming book?

H. FINANCIALS

1. Monthly Expenses

Make an itemized list of all the things you will need for your business to run monthly (website, hosting and domain name, email marketing service, business cards and other promotional items, office supplies, membership dues, etc.). If you are saving for some larger future expense (computer, software, cover design ), then note this in your budget, as well.

2. Monthly Revenue

Record your monthly income from all sources related to your writing business (royalties, freelance work, affiliate income, speaking, etc.). At first, this may seem like an exercise in futility, but with a solid business plan in place, you’ll soon start to see your revenue streams grow. 🙂

3. Production Budget (Per Book or Project)

Copyediting , line editing, proofreading, formatting for publishing, formatting for print, cover art, copyright registration, ISBNs, review copies, shipping, and research costs can all be budgeted on a per-book basis. These input costs will help you determine the potential viability (and profitability) of each project. If you also have a website and blog, there may also be production costs for blog posts, email newsletters, and other items (image or graphic fees, costs for giveaways, apps or software, etc.).

4. Sales + Income Projections

If you’re just starting out, creating sales projections may be difficult to do, but it’s certainly a good habit to develop if you’d like to ensure you’re making good business decisions. Forecasting is vital to planning sales, marketing, and spending. (For a free Amazon sales rank tracker, try NovelR ank.com  or SalesRankExpress.com .)

I. ADDITIONAL GROWTH + EXPANSION STRATEGIES

1. Professional Development

Your talent is your best asset. Continuing to improve upon both your writing AND your business skills, is a wise investment. Use this section of your business plan to note any classes, workshops, or conferences you plan to attend, if you plan to find a critique partner or writer’s group to join, or even add specific books you plan to read (for genre or topic research, or to gain additional skills).

Related Content: 39 Things to Remember When Struggling to Build Your Writing Career

2. Paid Advertising and Other Paid Options

Paid advertising, hiring a publicist, or anything else that requires cold hard cash upfront–without a guarantee of return–may not be on the top of your priority list. However, if you are considering some paid options, ensure you note your strategies here. Tracking your return on investment may be easier for some options than others, but it’s always wise to note your efforts and results.

3.   Repurposing

Continuously developing new content can take a lot of effort. Get more mileage out of the excellent content you produce (articles, newsletters, blog content, short stories, guides, updates, videos, etc.) by repurposing it into something fresh. You can change the format, share it on different mediums, turn a book or post into a course or workshop, and reach all new audiences. How will you stretch and repurpose each piece of content you create?

Related Content:  Create Great Content? How to Get More From It Through Repurposing

4. Outsourcing

Wise outsourcing can not only increase your efficiency and help level the playing field, but it allows you to focus on the core of your business–your writing. If you decide to outsource, determine what tasks you’ll pay someone else (editors, virtual assistants, designers, accountants, etc.) to handle.

Writing Your Author Business Plan Doesn’t Have to Be Hard

Kudos to you for making it this far! It may seem like a daunting task to compile your business plan, but I assure you it is well worth the effort.

Plus, your plan can be developed over a period of time and doesn’t have to be nailed down all in one sitting.

A business plan is fluid and ever-evolving. As new info comes in, circumstances change, or as results and analysis dictate, adjust your business plan accordingly. Remove sections from this plan that you feel don’t apply, and add sections that you feel are more relevant to your specific business needs.

Review and re-examine your plan on a regular basis to help keep yourself–and your writing career–on track.

And be sure to reward yourself when you’ve reached certain milestones and objectives. You’ll have most certainly earned it!

Questions? Comments? Please share your thoughts below.

Reading through your posts can be long and tedious, especially for people like me who always take notes. But in the end, it’s worth it. Thanks for another awesome post.

Yes, I’m nothing if not thorough… 😉

That’s why I’ve included the workbook – all the info, without the need to write it all down yourself.

This is just awesome .. Love it!!

Happy to hear it, Ashima. Hope you can put the plan to good use! 😉

Thanks so much, Kimberley! This is super helpful and so timely — my community of Queens, NY, is conducting a business plan competition with nice prize money. Glad to have your insights and guidance in the final days of preparation.

http://www.queensbooks.nyc

My pleasure John! 🙂

I was hoping to grab this fabulous download, but when I entered my email address and went through to the next page, the error message said the pdf could not be found. I thought this was because I was on mobile, but I tried several times on my PC and it still was appearing as not found.

My apologies Kieran – there is a bit of a glitch with the media file. Shoot me a quick email (Kim-at-YourWriterPlatform.com) and I’ll send it to you directly.

Authors with Platforms Sell Books.

It’s that simple.

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How To Write a Business Plan for Book Publishing Company in 9 Steps: Checklist

By alex ryzhkov, book publishing company bundle.

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Welcome to our blog post on How To Write a Business Plan for a Book Publishing Company in 9 Steps: Checklist . The book publishing industry in the US is thriving, with a growing demand for new and diverse stories. In fact, according to the latest statistics, the industry has shown a steady growth of 3.2% over the past year, with total revenue exceeding $26 billion . This presents a great opportunity for aspiring publishers to enter the market and establish a successful business.

Before diving into the intricacies of starting a book publishing company, it's essential to conduct thorough research on the industry. Gain an understanding of the current trends, market dynamics, and emerging opportunities. This will help you make informed decisions and carve out a unique position for your company in the market.

To effectively reach your target market, it's crucial to identify the specific audience for your published books. Is it children, young adults, or adults? Fiction or non-fiction readers? Understanding your target market will enable you to tailor your content and marketing strategies accordingly, increasing the chances of success.

A competitive analysis is a vital step in understanding the existing players in the book publishing industry. Identify their strengths, weaknesses, and unique selling points. This analysis will guide you in differentiating your publishing company from the competition and developing a compelling value proposition that attracts both authors and readers.

Next, define your unique selling proposition (USP) – what sets your book publishing company apart from others? This could be a specific genre focus, a commitment to diverse voices, or a particular approach to marketing and promotion. Your USP will be instrumental in attracting authors and building a loyal reader base.

When starting a business, it's important to determine the most suitable business structure and fulfill all legal requirements. Consult a legal professional to identify whether a sole proprietorship, partnership, or limited liability company (LLC) is best for your book publishing company. Additionally, research and comply with any necessary licenses, permits, or certifications.

A detailed financial plan is crucial to the success of your publishing company. Consider all potential expenses, such as editing services, cover design, printing, marketing, and distribution costs. Outline your projected revenues and profits to ensure viability and sustainability. This financial plan will also be valuable when approaching potential investors or lenders for funding.

Speaking of funding, it's essential to identify potential sources for financing your book publishing company. These could include personal savings, loans from banks or credit unions, crowdfunding, or seeking investment from angel investors or venture capitalists. Research each option thoroughly and determine which aligns best with your business goals.

Once you have your books ready to hit the market, it's time to develop a pricing and distribution strategy. Determine the ideal price range for your books based on market standards, production costs, and target audience affordability. Additionally, explore various distribution channels, such as selling through traditional brick-and-mortar bookstores, online retailers, or even direct-to-consumer sales channels.

To effectively promote your books, it's essential to outline a comprehensive marketing and promotional strategy. Identify the most effective marketing channels, such as social media, author events, book fairs, or collaborations with influencers. Utilize these channels to build brand awareness, attract readers, and establish long-term relationships.

By following these nine steps, you'll be well on your way to writing a robust business plan for your book publishing company. Stay tuned for more informative articles as we delve deeper into each step, providing you with the guidance and tools you need to launch a successful venture in the exciting world of book publishing.

Research The Book Publishing Industry

Researching the book publishing industry is a critical first step in creating a business plan for your book publishing company. This step will provide you with valuable insights into the current state of the industry, emerging trends, and opportunities for growth. Here are some key points to consider during your research:

• Industry Overview: Familiarize yourself with the overall landscape of the book publishing industry. Understand the different sectors within the industry, such as trade publishing, educational publishing, and self-publishing. This will help you identify potential niches or areas of focus for your publishing company.
• Market Analysis: Analyze the market demand for books within your target genre or category. Identify key demographics and consumer preferences to better tailor your publishing strategy. Look for opportunities in underserved markets or untapped genres.
• Technology and Digital Publishing: Stay abreast of technological advancements and their impact on the publishing industry. Explore the rise of e-books, audiobooks, and digital platforms. Consider the potential benefits and challenges of incorporating digital publishing into your business model.
• Industry Trends: Keep track of the latest industry trends and shifts in consumer behavior. Determine if there is a growing demand for specific types of books or if certain genres are declining in popularity. This information will support your decision-making process when selecting authors and titles for publication.
• Attend industry conferences and conventions to network with other professionals and stay updated on the latest industry developments.
• Subscribe to industry publications and blogs to access relevant news, analysis, and expert insights.
• Join online communities or forums dedicated to the publishing industry to engage in discussions and learn from experienced professionals.

By conducting thorough research on the book publishing industry, you will gain a comprehensive understanding of the market dynamics and be better equipped to design a successful business plan for your publishing company.

Identify Your Target Market

Before starting a book publishing company, it is crucial to identify your target market . Understanding your target audience will help you tailor your publishing efforts, marketing strategies, and book selections to meet their specific needs and preferences.

Here are some important steps to help you identify your target market:

• Research and analyze the demographics of potential readers. Consider factors such as age, gender, location, and interests. This information will assist you in creating books that cater to your target audience's tastes.
• Define your niche. Determine the specific genre or subject area your publishing company will focus on. By narrowing down your target market, you can position yourself as an expert in that particular field and attract readers who are passionate about those topics.
• Conduct surveys and gather feedback from potential readers to understand their preferences and expectations. This will help you gauge their interest in different book genres, formats, and themes.

Tips for Identifying Your Target Market:

• Stay updated with current market trends and reader preferences to predict future demands.
• Observe and analyze successful books in your niche to identify their target audience and understand what makes those books appealing to them.
• Engage in social media platforms and online book communities to interact with potential readers and gain insights into their reading habits.

Identifying your target market is an ongoing process as reader preferences and market trends evolve. Continuously monitoring and adapting your strategies will ensure that your book publishing company remains relevant and successful.

Conduct A Competitive Analysis

As a book publishing company, it is essential to conduct a competitive analysis to understand the landscape you are entering and identify opportunities for your business. This analysis will provide insights into your competitors' strengths and weaknesses, allowing you to position your company more effectively in the market.

When conducting a competitive analysis, consider the following:

• Identify your direct competitors: Research and identify companies that publish books in the same genre or target the same audience as your company.
• Examine their publishing portfolios: Study your competitors' books to understand the type of content they publish, the quality of their editing, design, and overall production value.
• Evaluate their marketing strategies: Analyze how your competitors promote their books and engage with readers. Look at their online presence, social media activity, and advertising efforts.
• Assess their distribution channels: Understand where your competitors sell their books and how they reach their target audience. This information will help you identify potential gaps or opportunities.
• Consider pricing and royalty structures: Analyze the pricing strategies of your competitors, including the price points for different formats of books. Additionally, understand the royalty rates they offer to authors.
• Stay up-to-date with industry trends: Keep track of emerging trends and new developments in the book publishing industry. This will help you differentiate your business and stay competitive.
• Identify gaps in the market: Look for areas where your competitors might be lacking or overlooking opportunities. This could be in terms of genres, distribution channels, or marketing strategies.
• Learn from successful publishers: Study successful book publishing companies and learn from their strategies. Understand how they have positioned themselves in the market and what sets them apart.

By conducting a thorough competitive analysis, you will have a clearer understanding of your market and be better equipped to develop strategies that will help your book publishing company thrive.

Define Your Unique Selling Proposition

Defining your unique selling proposition (USP) is a crucial step in creating a business plan for your book publishing company. Your USP is what differentiates your company from others in the industry and helps you stand out to potential authors and readers. It is a clear and concise statement that communicates the unique value and benefits you offer.

When defining your USP, consider the following:

• Identify your niche: Determine the specific genre or market segment you specialize in. This could be a particular genre like romance novels or a niche within a genre, such as eco-friendly children's books. By focusing on a niche, you can target a specific audience and establish yourself as an expert in that area.
• Highlight your expertise: Showcase your experience and knowledge in the publishing industry. Share any relevant qualifications, previous successes, or connections that set you apart from your competitors. This will build trust and confidence in your ability to effectively publish and promote books.
• Emphasize your unique approach: What innovative strategies or services do you offer to authors? This could include personalized marketing plans, strong distribution channels, or a robust author support system. Highlighting these unique aspects will attract authors who are seeking a publisher that goes above and beyond traditional practices.

Tips for Defining Your USP:

• Research the market trends and demands to identify gaps or opportunities that align with your strengths.
• Consider conducting surveys or focus groups with authors to gather insights and better understand their needs and expectations.
• Stay up-to-date with the latest industry developments and technology advancements to incorporate them into your USP.
• Regularly review and refine your USP to stay relevant and competitive in the ever-changing publishing landscape.

Defining your USP will not only help you attract talented authors but also resonate with readers who are searching for unique and high-quality books. It is an essential aspect of your business plan that sets the foundation for your company's success in the book publishing industry.

Determine Your Business Structure and Legal Requirements

When starting a book publishing company, it is crucial to determine the business structure and legal requirements that will govern your operations. This step will help you establish the legal framework and ensure compliance with the necessary regulations.

First, you need to decide on the business structure that best suits your organization. The most common options for a book publishing company are sole proprietorship, partnership, limited liability company (LLC), or corporation. Each structure has its own advantages and disadvantages, so it is vital to consider factors such as liability, tax implications, and management before making a decision.

Once you have determined the business structure, you must fulfill the legal requirements for operating a book publishing company. This typically involves registering your business with the appropriate authorities, such as the Secretary of State or local government agencies. You may also need to obtain licenses or permits specific to the publishing industry, depending on your location.

Tips for determining your business structure and legal requirements:

• Consult with a business attorney or accountant to understand the legal implications and tax benefits of different business structures.
• Research the licensing and permit requirements in your state or country to ensure compliance with all necessary regulations.
• Consider the long-term goals and growth prospects of your publishing company when determining the most suitable business structure.
• Keep thorough records of all legal documents and registrations for future reference and compliance.

By carefully considering your business structure and fulfilling the legal requirements, you can establish a solid foundation for your book publishing company. This step is crucial to ensure that your operations are conducted legally and efficiently, providing a strong platform for growth and success in the industry.

Create A Detailed Financial Plan

A detailed financial plan is crucial for the success of your book publishing company. It serves as a roadmap to help you navigate the financial aspects of your business and ensure you are making sound financial decisions. Here are the key steps to create a detailed financial plan:

Determine all the costs involved in starting your book publishing company. This includes expenses such as office space, equipment, software, licenses, and initial inventory. Make a comprehensive list and research the market to get accurate estimates.

Forecast your cash flow by estimating your revenue and expenses on a monthly or quarterly basis. This will help you understand your cash needs and plan accordingly. Consider factors such as book sales, royalties, marketing expenses, printing costs, and overhead expenses.

Decide on your financial goals and how you plan to achieve them. This could include targets for sales revenue, profit margins, and return on investment. Set achievable milestones and regularly review your progress.

Estimate your book sales based on market research and industry trends. Consider factors such as the genre of books you will publish, target market demand, and competitive analysis. Use this information to project your revenue and adjust your marketing and distribution strategies accordingly.

Create a detailed budget that outlines your anticipated expenses for each area of your business, such as editorial services, design and layout, marketing and promotions, printing, distribution, and administrative costs. Regularly monitor and update your budget to stay on track.

Consider working with a financial advisor or accountant who has experience in the publishing industry. They can provide valuable insights, help you identify potential financial risks, and assist in creating a solid financial plan.

• Include a contingency fund in your financial plan to account for unexpected expenses or changes in market conditions.
• Regularly review and update your financial plan as your business grows and market conditions evolve.
• Research and compare different pricing models for your books to ensure optimal profitability.
• Explore potential collaborations or partnerships with other publishers, authors, or distributors to leverage resources and reduce costs.

By creating a detailed financial plan, you will be well-equipped to make informed financial decisions and set your book publishing company up for success. Remember to regularly monitor and update your financial plan as your business grows and adapts to the ever-changing publishing industry.

Identify Potential Funding Sources

One of the crucial aspects of starting a book publishing company is securing the necessary funding to support your operations and investments. Below are some potential funding sources that you can explore:

• Personal Savings: Utilize your own savings or personal funds to kickstart your publishing venture. This can give you greater control and flexibility over your finances.
• Family and Friends: Consider reaching out to your network of family and friends who may be interested in supporting your business. Remember to approach them professionally and outline the potential returns and risks involved.
• Angel Investors: Look for angel investors who are interested in the publishing industry. These individuals typically provide funding in exchange for ownership equity or a stake in your company.
• Bank Loans: Approach banks or financial institutions to explore options for business loans or lines of credit. Prepare a well-thought-out business plan and financial projections to increase your chances of securing funding.
• Crowdfunding: Consider running a crowdfunding campaign on platforms like Kickstarter or Indiegogo to gather financial support from a larger audience. Provide compelling incentives such as limited-edition books or exclusive perks to attract backers.
• Grants and Scholarships: Research grants and scholarships offered by organizations or institutions that support the publishing industry. Make sure to carefully review the eligibility criteria and application deadlines.
• Industry Partnerships: Explore potential partnerships with established publishers or literary organizations that may be willing to invest in your company. They could offer financial support, resources, or expertise in exchange for collaboration opportunities.
• Present a clear and compelling business plan when approaching potential funding sources to demonstrate your understanding of the publishing industry and your company's growth potential.
• Consider seeking the advice of a professional financial advisor or consultant to help identify the most suitable funding sources and guide you through the funding process.
• Explore alternative financing methods, such as revenue-sharing agreements with authors or strategic partnerships with other businesses in the publishing ecosystem.
• Regularly review and update your financial projections to ensure they align with the current market conditions and publishing trends.

By identifying and pursuing suitable funding sources, you can secure the necessary resources to launch and grow your book publishing company. Remember to research each option thoroughly, weigh the pros and cons, and choose the funding strategy that aligns with your long-term goals and vision.

Develop a Pricing and Distribution Strategy

When it comes to running a book publishing company, developing a solid pricing and distribution strategy is essential . This step involves determining how to price your books and how to effectively get them into the hands of readers.

Here are some key considerations to keep in mind:

• Assess production costs: Before setting a price for your books, it's important to calculate the cost of production. Consider expenses such as editing, designing, printing, and distribution. Take into account both fixed and variable costs to ensure you cover all expenses and make a profit.
• Research market trends and competition: Analyze the prices of similar books in the market to gain insights on what readers are willing to pay. Additionally, take note of any pricing strategies employed by your competitors. This will help you determine if you want to price your books higher or lower, based on factors such as author reputation, book quality, and target audience expectations.
• Create pricing tiers: Consider offering different price points for your books. This can include options such as hardcover, paperback, and e-book editions. By providing a range of choices, you cater to different reader preferences and budgets .
• Establish distribution channels: Decide on the best channels to distribute your books. This can include partnerships with bookstores, online retailers, libraries, or even direct-to-consumer sales. Consider utilizing both physical and digital platforms to reach a wider audience.
• Negotiate distribution deals: If you choose to work with bookstores or online retailers, be prepared to negotiate terms with potential partners. This may involve discussions on discounts, consignment arrangements, or exclusive distribution rights . Look for partners who align with your goals and have a strong presence in your target market.

Tips for Developing a Pricing and Distribution Strategy:

• Regularly evaluate and adjust your pricing strategy to stay competitive and profitable.
• Consider offering special discounts or promotions during book launches or seasonal events to attract more readers.
• Maximize the potential of online platforms by utilizing digital marketing tools, such as email newsletters and social media campaigns, to promote your books.
• Explore alternative distribution methods, such as partnering with local book clubs or organizing author events in your community, to create additional buzz and sales opportunities.

By taking the time to carefully develop your pricing and distribution strategy , you can ensure that your books are priced competitively and reach the hands of your target audience efficiently. This will set your book publishing company up for success in the dynamic and ever-evolving publishing industry.

Outline Your Marketing and Promotional Strategies

Effective marketing and promotion strategies are crucial for the success of your book publishing company. By creating a comprehensive plan, you can ensure that your books reach your target audience and generate maximum exposure. Here are some key steps to outline your marketing and promotional strategies:

• Identify your target audience: Conduct thorough research and determine the demographic, interests, and preferences of your target readers. This will help you tailor your marketing efforts to effectively reach and engage with them.
• Create a compelling brand: Develop a strong and unique brand that resonates with your target audience. This includes creating a visually appealing logo, designing an attractive website, and establishing a consistent brand message across all marketing materials.
• Build an online presence: In today's digital age, having a strong online presence is essential. Build a professional and user-friendly website, create social media accounts, and engage with your audience through regular blog posts and updates.
• Utilize social media: Social media platforms offer a powerful marketing tool for reaching and engaging with your target audience. Create a content calendar and regularly share relevant and engaging posts, promotions, and updates. Interact with your followers and respond to their comments and messages.
• Establish author platforms: If your publishing company works with authors, help them establish their own author platforms. This includes creating professional author websites, setting up social media profiles, and organizing book signings and speaking engagements.

Tips for Successful Marketing and Promotion:

• Collaborate with influencers in the book industry to promote your books.
• Offer free advanced copies of your books to influential reviewers or bloggers for their honest reviews.
• Organize book launch events, signings, and readings to create buzz and attract potential readers.
• Participate in book fairs, industry conferences, and local events to network and showcase your books.

Create a marketing budget: Allocate a budget for marketing and promotions, considering costs for advertising, online campaigns, book trailers, email marketing, and other promotional activities. Ensure that your budget aligns with your business objectives and estimated sales projections.

Monitor and analyze: Regularly evaluate the effectiveness of your marketing and promotional strategies. Use analytics tools to measure website traffic, social media engagement, and book sales. Adapt and iterate your strategies based on the data and feedback received.

By outlining and implementing a comprehensive marketing and promotional plan, you can maximize the visibility and success of your book publishing company. Remember to stay proactive, adapt to industry trends, and constantly seek innovative ways to reach your target audience.

In conclusion, starting a book publishing company requires careful planning and consideration of various factors. By conducting thorough research, identifying your target market, analyzing the competition, and creating a solid financial plan, you can set a strong foundation for your business. Additionally, defining your unique selling proposition, determining the legal requirements, and exploring potential funding sources are crucial steps to success. Developing a pricing and distribution strategy, as well as outlining effective marketing and promotional strategies, will help you establish your presence in the competitive book publishing industry. With dedication and strategic execution, your book publishing company can thrive and contribute to the literary world.

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Business Plan Template for Book Publishers

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Are you a book publisher looking to take your business to new heights? Whether you're a seasoned professional or just starting out, having a solid business plan is the key to success in the publishing industry. And ClickUp's Business Plan Template for Book Publishers is here to help you every step of the way!

With this template, you can:

• Outline your publishing goals, vision, and strategies
• Create detailed financial projections and budgets
• Identify target markets and develop effective marketing strategies
• Plan for distribution, sales, and author acquisitions
• Track progress and make adjustments to ensure success

Don't leave your publishing dreams to chance. Get the ClickUp Business Plan Template for Book Publishers today and turn your passion into a thriving business!

Business Plan Template for Book Publishers Benefits

A Business Plan Template for Book Publishers offers a range of benefits to help publishers successfully navigate the industry:

• Provides a clear roadmap for launching or expanding a publishing business, outlining the vision and goals.
• Assists in identifying target audiences, understanding market trends, and developing effective marketing strategies.
• Helps publishers analyze competition and differentiate themselves in the market.
• Allows for comprehensive financial projections, including revenue streams, expenses, and potential funding sources.
• Ensures a structured approach to managing operations, distribution channels, and author relationships.
• Facilitates strategic decision-making and adjustments based on market dynamics and industry shifts.
• Provides a professional document that can be shared with investors, partners, and stakeholders to secure funding and support.
• Enables publishers to demonstrate a deep understanding of their industry and the viability of their business concept.

Main Elements of Book Publishers Business Plan Template

When it comes to creating a business plan for your book publishing venture, ClickUp has you covered with a template tailored specifically for the industry. Here are the key elements of ClickUp's Business Plan Template for Book Publishers:

• Custom Statuses: Keep track of your progress with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring your business plan stays on track.
• Custom Fields: Use custom fields such as Reference, Approved, and Section to add important details and track the status of each section of your business plan.
• Custom Views: Take advantage of five different views, including Topics, Status, Timeline, Business Plan, and Getting Started Guide, to organize and visualize your business plan in the most effective way possible.
• Document Collaboration: Collaborate with your team members and stakeholders using ClickUp's Docs feature, allowing you to work together seamlessly on your business plan.
• Task Management: Break down your business plan into actionable tasks using ClickUp's tasks feature, assigning responsibilities, setting due dates, and tracking progress every step of the way.

How To Use Business Plan Template for Book Publishers

Creating a business plan for a book publishing company can be a daunting task, but with the help of ClickUp's Business Plan Template, you can break it down into five simple steps:

1. Define your vision and mission

Start by clearly defining your vision and mission for your book publishing business. What is your ultimate goal? What do you want to achieve? This will help guide your decision-making process and set the tone for your business.

Use the Docs feature in ClickUp to write down your vision and mission statements for easy reference.

2. Identify your target audience

Next, identify your target audience for the books you plan to publish. Who are the readers you want to reach? What are their preferences and interests? Understanding your target audience will help you tailor your publishing strategies and marketing efforts accordingly.

Create custom fields in ClickUp to track important information about your target audience, such as demographics and reading preferences.

3. Develop your publishing strategy

Now it's time to develop a comprehensive publishing strategy. This includes deciding what genres and types of books you will focus on, establishing relationships with authors and agents, and determining your distribution channels.

Use the Gantt chart feature in ClickUp to create a timeline and visually plan out each step of your publishing strategy.

4. Create a financial plan

A solid financial plan is crucial for any business, including book publishing. Determine your startup costs, projected revenue, and expenses. Consider factors such as printing costs, marketing expenses, and royalties for authors. This will help you understand the financial feasibility of your business and make necessary adjustments.

Utilize the Table view in ClickUp to create a spreadsheet and track your financial projections and expenses.

5. Set goals and milestones

Lastly, set specific goals and milestones for your book publishing business. These can include targets for the number of books published, revenue generated, or market share gained. Break these goals down into smaller milestones to track your progress and keep yourself motivated.

Use the Milestones feature in ClickUp to set and track your goals and milestones, ensuring that you stay on track and celebrate your achievements.

By following these five steps and utilizing ClickUp's Business Plan Template, you'll have a comprehensive and well-structured business plan for your book publishing company.

Get Started with ClickUp’s Business Plan Template for Book Publishers

Book publishers can use the Business Plan Template for Book Publishers to create a comprehensive plan for their publishing endeavors.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a successful business plan:

• Use the Topics View to organize your plan into different sections such as market analysis, marketing strategies, and financial projections
• The Status View will help you track the progress of each section, whether it's complete, in progress, needs revision, or to do
• Utilize the Timeline View to set deadlines and milestones for each section of your plan
• The Business Plan View will give you an overview of your entire plan, allowing you to easily navigate and make updates
• Use the Getting Started Guide View to access helpful resources and tips on how to create a successful business plan
• Add custom fields like Reference, Approved, and Section to provide additional information and track important details
• Update statuses and custom fields as you work through your plan to keep stakeholders informed of progress
• Monitor and analyze your plan to ensure it aligns with your goals and objectives
• Business Plan Template for Technology Consultants
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How to Start a Publishing Company

Publishing is the act of producing and distributing literature, music rights, video games, and information. The industry is made up of many types of publishing companies. Some companies publish materials for wider public consumption, while others cater to niche markets.

How to Start a Publishing Company — Checklist Download

This free checklist will help you set up your own publishing company.

Publishing Company Business Plan — Free Template

This template will help you to build your business plan from gathering vital information to presenting it professionally.

How to Start a Publishing Company:

A step-by-step guide on how to create a publishing company.

Decide on a type of publishing.

Choose what sort of publishing company you want to start..

The first step in starting a publishing company is in deciding what and how it will be publishing. Consider the options below.

Trade: Aims for wider public consumption. Companies that publish magazines, newspapers, popular music, popular video games, and books for the general reading public all fall into this category.

Academic and educational: Focuses on research and educational material. Academic research journals and syllabus-oriented textbooks fall into this category.

Independent and regional: Made up of small presses focusing predominantly on materials of local or regional interest, such as local histories and tourism pamphlets.

Boutique: Specializes in narrow, niche markets. Small presses publishing genre-specific fiction fall into this category, for example.

Self-publishing: The creator of the material pays the publishing costs and plays a much bigger role in the process.

Electronic: Offers an alternative to traditional publishing, sharing content across digital platforms only.

Name your business.

Come up with a name..

Give your company a name. There are a number of things to consider when naming your publishing company to successfully convey the values and mission of your brand, but you'll want to be creative. A unique name will set your company apart from the rest and will make it easier later when securing a domain name.

Think specifics: What genre are you working in? What subject, and for what age groups?

Revisit values: What are your business's core values? And what values does your market hold as important?

Your name should be easy to remember, spell, and say.

Check availability.

Use the U.S. Patent and Trademark Office’s trademark search tool to see if your name isn't already in use.

Follow this guide on How to Check Business Name Availability for a more thorough check.

Trademark your business name.

If you have decided on a publishing company business name, secure a trademark so that no one else takes it. You can register a trademark at www.uspto.gov .

Go to the U.S. Patent and Trademark Office website .

Click on "Trademarks."

Click on "Trademark basics."

Make sure you fully understand what is required of you.

Click on "Apply for a trademark."

Register on the Trademark Electronic Application System (TEAS).

Pick a distribution model.

Consider the print-on-demand model..

Check to see if print-on-demand works for the publishing you're doing, your goals, and your budget. With this model, nothing is printed before-hand. Someone purchases your publication online, the order is sent to the printer, and then sent to the customer.

Without having to print ahead of time and store inventory in a warehouse, print-on-demand is less risky and requires a lower investment in each title. However, the cost of printing is higher per unit .

Consider the traditional distribution model.

Find out whether printing ahead of time and storing publications in a warehouse fits the kind of publishing you do, your budget, and your goals.

While this model does allow for bulk printing and ensures consistently good quality , it is expensive upfront because it carries storage, returns, and shipping fees.

Consider the direct-to-reader model.

Consider whether cutting out most of the distribution chain and selling digital publications directly to readers through an online sales page makes sense for your company.

There are very little upfront costs and risks with this model, but a comprehensive marketing strategy is needed .

Create a publishing company business plan.

Write the business description section..

Leave a page for the executive summary, which should be written last, and start with the business description section. This section includes legal structure, location, the expected launch dates of publications, and all sources of revenue.

Write the operations and management section.

After describing your business, move on to describe the leadership and management structures. This section includes the backgrounds of all members of your leadership team and demonstrates why they are a good fit. Include information about the major departments such as editorial, sales, legal, operations, etc.

Run through your marketing strategy.

Once you've finished discussing your leadership, break down your business's marketing strategy. Include information about your target market, genre, and promotional outlets.

Do a full SWOT analysis and include the information about your strengths, weaknesses, opportunities, and threats in this section.

Write about your competition.

Unpack in detail industry revenues for the last few years, paying attention to growth. Then describe what you know about other publishing houses in your area. In particular, note what aspects of their business may be in direct competition with yours.

Talk about your financials.

Discuss your start-up expenses, sources of funding, financial operations, revenue projections, and break-even point.

The better you know your competition and target market, the more accurately you will predict your first-year revenue.

Share your future plans.

Describe any plans you have for your company. Once it has covered all opening costs and is able to maintain strong cash flow, what is next? You can include hiring more people, publishing a few other titles, expanding the office building, creating an app, etc.

You don't need to be as detailed as in the rest of the business plan. A few details will be fine.

Now write your executive summary.

Now that you've written your business plan, it should be easier to distill everything into a snappy, thoughtful, evocative executive summary.

Include your mission statement.

List anything about your company that helps to distinguish it from the rest.

Focus on investment opportunities.

• Form a legal entity.

Choose one of four legal structures for your company.

For professional, financial, and tax purposes, set up your company as a sole proprietorship, partnership, limited liability corporation (LLC), or corporation.

Independent publishing companies generally go with setting up a limited liability corporation to avoid personal liability and double taxation. It is also more flexible in terms of ownership and profit distribution.

Sole Proprietorship: A business that is owned and operated by just one person, who is then solely responsible for tax and liability issues.

Partnership: Two or more partners who share the business's tax and responsibilities.

Limited Liability Corporation (LLC): An entity that protects owners from liability, while passing taxes on to them. May use corporate or partnership tax rules.

Corporation: A distinct legal entity that assumes all liability and is taxed as a business at corporate tax rates. Has members and shareholders.

Secure start-up financing.

Approach a bank or government program..

Meet with your local bank to find out more about small business loans, or find a qualified lender that offers SBA loans .

Choose an option with interest rates that aren't too high.

Pitch to investors.

Sell equity in your business to interested investors. Investors give you money in exchange for part ownership.

Apply for a business credit card.

Approach a bank and apply for business credit. Interest rates for credit cards are high but are an option for a short term injection of capital.

Try crowdfunding.

Create a crowdfunding campaign to reach as many people as possible and offer them something for their financial help.

• Purchase insurance.

Find coverage against libel and copyright lawsuits.

Buy several types of insurance including Media Liability Insurance, Publisher's Perils Insurance, and Business Interruption Insurance.

Search for an insurance company that offers packages designed particularly for publishers.

• Find an office.

Lease commercial real estate.

If your home office won't suffice, start looking for an office space to rent. You'll need to take a serious look at your budget before approaching an agent.

Buy International Standard Book Numbers.

Buy an isbn number from an isbn service..

Help buyers and sellers identify your business as the publisher of a given book by buying a unique ISBN for each title. You can buy an ISBN from any number of ISBN services. A single ISBN costs between $18.00 and $150.00. Buying them in bulk often brings the price per number down.

They can be used for e-books, but aren't necessary.

• Hire employees or freelancers.

Recruit the talent you need.

If you have started your company to self-publish, you'll play most of the roles found in the average publishing company. For a larger operation, you'll need help to produce, market, and distribute your published materials. You can decide to employ fulltime or make use of freelancers to fulfill different functions. Such functions include editing, sales, design, public relations, and bookkeeping.

Use hiring software to streamline the process of posting jobs, accepting applications, scheduling job interviews, and sending out final job offers. Or you can connect to freelancers through gig-economy platforms such as Upwork .

Approach a staffing agency. They often have access to large talent pools and can, therefore, reach more candidates.

Advertise your publishing company.

Create a company website..

Register a domain name and build a site that explains who you are and what you offer. Use a website builder to design a website or pay an expert to help you. Having a website increases your visibility, discoverability, and legitimacy.

Start social media accounts for your business.

Facebook and Twitter pages, in particular, will make it easier for people to engage with you. Be sure to keep these pages active and don't underestimate the value of engaging directly.

Publish a blog.

Keep your website active and full of fresh, topical, and interesting information by publishing a blog. They're a great way to showcase your authors, books, magazines, newspapers, and games, and give you a strong platform for conveying your values, approaches, and mission.

Join your local publisher's association.

Become a member of your local publisher's association. This will give you access to exclusive events, professional development, networking opportunities, and the latest industry intelligence. It will also increase your company's visibility and credibility as a serious business.

Publishing Company Metrics:

Contribution margin per book sold..

The contribution margin in book publishing is the earnings from each title after all the variable costs accrued in the production and distribution of the book have been covered.

It is important to calculate the contribution margin from each book because it tells you how much each sale contributes towards paying your fixed costs and establishes a benchmark for how many books you need to sell before turning a profit.

Here are the three steps for calculating the contribution margin for each book:

Book list price x number of books sold = total sales.

Total sales - variable costs = total contribution margin.

Total contribution margin/number of books sold = contribution margin per book.

A book sells for $16 and a total of 10,000 are sold. This adds up to the total sales of $160,000.

Take the $160,000 total sales and subtract the associated variable costs, which for this example come to $100,000. This gives you a total contribution margin of $60,000.

Now, divide the $60,000 total contribution margin by the 10,000 books sold, and you have your contribution margin per book: $6.

Each book you've sold has contributed $6 towards paying your fixed costs. If all your fixed costs have been paid, then each book is contributing $6 towards your profit.

List price: The price on the cover of the book in the bookstore or online store.

Variable costs: Retailer discount, distribution, paper, printing, binding, cover design, cover art, line editing, copy editing, text design, layout, proofreading costs, marketing, and royalties.

Fixed costs: Rent, salaries, insurance, licenses, permits, property tax, utilities, etc.

Expert Advice on Starting a Publishing Company:

Must-Reads Before Starting a Publishing Company:

• Book Business: Publishing Past, Present, and Future by Jason Epstein.
• The Self-publishing Manual by Dan Poynter.
• Publishing for Profit by Thomas Woll.
• The Book Publishing Industry by Albert Greco.
• The Elements of Style by William Strunk Jr. and E.B. White.
• The Chicago Manual of Style by The University of Chicago Press Editorial Staff.

Publishing Logos

How do I start my own publishing company?

• Decide on the type of publishing .
• Name your company.
• Choose a distribution model.
• Create a business plan.
• Secure financing.

What does a publishing company do?

Publishing companies produce and distribute literature, music, games, and information.

How much does a publishing company make?

It is difficult to say how much publishing companies make on average. According to the latest Association of American Publishers (AAP) report , the book publishing industry had estimated revenue of $258 billion in 2018.

What is an independent publishing company?

Independent publishing companies are small companies that are not part of large conglomerates or multinational corporations. The terms "indie press," "small press," and "independent press" are all used to describe these businesses.

How much does it cost to publish a book?

It costs anywhere from $0 to $50,000 or more. You could literally post a book to a free blogging site like WordPress, or you can have it printed on fine paper, distributed around the world, and heavily marketed.

How do publishers make money?

Publishers take a small percentage of every sale after paying retail, distribution, author, production, and overhead costs. This percentage ranges between 5% and 12%.

How do I get an ISBN?

You can buy an ISBN from Bowker , an official source of ISBNs in the U.S.

How much do publishers pay authors?

Publishers often pay authors an advance on predicted sales and then pay royalties on every book sold. Royalties can follow a sliding scale such as up to 10 percent on the first 5,000 books sold, 20 percent on the next 5,000, and so on.

How do I start an online publication?

• Pick a topic.
• Choose a name.
• Do market research.
• Secure a domain name .
• Build a website.
• Build your team.
• Generate content.
• Monetize the site.

How do I start a music publishing company?

• Decide on the type of music.
• Find an office and recording studio.
• Hire employees.

How do publishing companies work?

Book publishing companies and music publishers buy the rights to produce and sell the works of authors and musicians and pay them royalties on each unit sold.

How much does it cost to start a publishing company?

It costs between $50.00 and $500.00 to register your company. After that, there are advertising costs, rent, and the expenses associated with getting an initial product out to market. These costs can range from thousands to millions of dollars, depending on the size of your operation.

How much money does a publisher make?

Publishers make between $60,000 and $280,000 a year, according to our research. Publishers salaries depend on the type and size of the publishing company.

Does every book have an ISBN number?

Every edition of a book should have its own unique ISBN.

How much does it cost to get an ISBN number?

A single ISBN costs between $18.00 and $150.00.

Do authors pay publishers?

Not traditionally, no. Publishers pay authors royalties on sales.

Does your business need media liability insurance?

Yes, if your business needs media liability insurance to protect itself against libel, plagiarism, and invasion of privacy lawsuits.

How much does media liability insurance cost?

Media liability insurance policies cost $2,500.00 a year on average but can cost as little as $500.00 a year.

How do bookstores get their books?

Bookstores order books directly from publishers and distributors, but they also receive books from wholesalers.

What is an ISBN?

An ISBN is a 13-digit number used to help buyers and sellers identify your business as the publisher of a given book. Each title requires its own ISBN. They can be used for e-books, but aren't necessary.

What genre of books sells the most?

The top three best-selling genres are Romance/Erotica, Crime/Mystery, and Religious/Spiritual, in that order.

Can I be my own music publisher?

Yes, you can set up a music publishing company to publish your original music.

What is a micro-publisher?

Publishers with total revenues below a certain level are considered to be micro-publishers. Publishers publishing for a specific micro-market and those creating predominantly digital content shared across social media platforms, email, and public websites are also forms of micro-publishers.

How much money can you make from a self-published book?

Self-published authors can earn up to 35 percent on every printed book sold, and as high as 70 percent on every ebook sold.

How long does it take to publish a book?

According to our research, it can take anywhere from three weeks to six months. The process includes writing, editing, production, printing, and binding.

What goes into a business plan for a publishing company?

• Executive summary.
• Company description.
• Products and services.
• Marketing plan.
• Operational plan.
• Management description.
• Financial plan.

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Creating a Business Plan for a Publishing Company

Table of contents, introduction.

This write-up will dive into the crucial yet often overlooked topic of creating a business plan for a publishing company. Yes, business plans can seem tedious. But stick with me because mastering this fundamental skill can differentiate between a floundering startup and a successful, sustainable publishing business.

With some effort and guidance, you can learn how to craft a winning business plan tailored specifically to the publishing industry. When done right, your business plan will:

Let’s get started.

The Basics of Creating a Business Plan for a Publishing Company

A business plan is an essential strategic document that outlines the goals, objectives, and tactics needed to launch and grow a successful publishing company. At its core, a business plan serves as a roadmap that guides essential decisions and aids in securing funding from investors.

Defining the Business Plan

Key components of a publishing business plan.

While the exact structure can vary, most publishing business plans contain the following key sections:

Attracting Investors with a Strong Business Plan

A well-crafted business plan instills confidence by thoroughly understanding the industry’s competitive landscape and showcasing a path to sustainability and growth.

Why You Need a Business Plan for Your Publishing Company

A clear vision and effective strategy are crucial for any successful publishing company. A well-crafted business plan allows you to define your company’s purpose, set goals, and map out a strategy to achieve them. Without a plan, it’s easy to lose focus or be swayed by passing trends instead of pursuing activities that align with your core mission.

Examining the financial viability of your publishing company is another key reason to create a business plan. You can assess if your company model is sustainable by projecting sales, costs, and profit margins over time.

A business plan allows you to spot potential cash flow issues or shortfalls in advance so you can modify your strategy. It also provides essential documentation if you seek funding from banks or investors.

With a solid plan, you can pursue your publishing goals strategically and purposefully.

Key Reasons for Creating a Business Plan for a Publishing Company:

Step-by-step guide to creating a business plan for a publishing company.

Creating a comprehensive business plan is essential for any new publishing company. A clear roadmap can help you secure funding, attract investors, and guide your strategy. Here is a step-by-step guide to crafting a winning business plan:

Conduct Thorough Market Research

Before anything else, you need to understand your target market inside and out. Research reader demographics, analyze competing publishers, identify gaps and opportunities in the market, and determine where your company fits in the competitive landscape. A data-driven approach is key.

Define Your Company’s Mission and Objectives

Describe your products and services.

Provide an overview of the types of books and services you plan to offer. Will you publish fiction, nonfiction, children’s books, or a mixture? What value do you bring to authors and readers? You want to convey what makes your offerings unique.

The Legal Structure and Ownership

This business plan section should detail the legal structure you’ve chosen for your publishing company. Common structures include sole proprietorship , partnership, limited liability company (LLC) , or corporation. Each has pros and cons, so consult a legal advisor or business consultant to determine the best fit for your situation. For instance, a sole proprietorship is the simplest form but offers no personal liability protection. An LLC provides liability protection without the formalities of a corporation. A corporation is more complex but allows for outside investors and protects personal assets from business liabilities. Here’s what you need to include in this section: 1. Legal Structure: Clearly state the legal structure of your company. If it’s an LLC, specify whether it’s member-managed or manager-managed. If it’s a corporation, note if it’s an S corporation or a C corporation . 2. Ownership Information: List all owners and their percentage ownership. If there are multiple owners, describe their roles and responsibilities. If you plan to seek external investment, mention the equity share available for investors. 3. Registration Details: Include information about where your company is registered, the date of registration, and any relevant registration numbers. 4. Licenses and Permits: Detail any necessary licenses and permits you must obtain. This might include a business license, sales tax permit, or ISBN registrar for a publishing company. 5. Intellectual Property: Discuss how you plan to protect your intellectual property, such as copyrights for the books you publish. By clearly defining your publishing company’s legal structure and ownership, you’ll provide potential investors with crucial information about the risks and rewards associated with investing in your business.

Outline Your Marketing Plan

Start by identifying what you want to achieve with your marketing efforts. This could be increasing brand awareness, reaching a new audience segment, boosting book sales, or attracting high-quality authors. Make sure these objectives align with your overall business goals. 2. Identify Your Target Audience

Use the information from your market research to define your target audience. Include demographic information like age, gender, education level, and psychographic details such as interests, values, and reading habits. 3. Understand Your Competition

Define your unique selling proposition (USP) – what sets your publishing company apart. This could be the type of books you publish, the authors you work with, your editorial standards, or your innovative marketing techniques. 5. Choose Your Marketing Channels

Determine which marketing channels will be most effective for reaching your target audience. This might include social media, email marketing, content marketing (blogs, podcasts, videos), public relations, events, and advertising. Consider both online and offline channels. 6. Develop Your Promotional Strategy

Determine how much you’re willing to spend on marketing activities. Remember to factor in website development, advertising, event hosting, and content creation costs. 8. Measure Your Success

Define key performance indicators (KPIs) to measure the success of your marketing efforts. These might include the number of books sold, website traffic, social media engagement, email open rates, or event attendance. 9. Plan for Adjustments

Project Financials and Funding Needs

Provide projected sales, costs, profit margins, and funding requirements. Analyze expected revenues and expenses. This will demonstrate the viability and profitability of your publishing company.

Describe Your Management Team

Introduce your experienced leadership team and their qualifications. This gives investors confidence in your ability to execute your plan. This step-by-step guide will help you create a rock-solid business plan tailored specifically for a publishing startup. With clear goals, thorough market research, and financial planning, you’ll be poised for success.

Crafting the Executive Summary for Your Publishing Company’s Business Plan

Convey the essence of your business.

Briefly explain what your publishing company does, your target audience and market, and your competitive advantage. This helps readers quickly understand your business model and value proposition.

Emphasize Financial Highlights

Include key financial projections and metrics like expected revenues, profit margins, break-even point, and return on investment. These numbers showcase the money-making potential of your publishing company.

Discuss Your Goals and Objectives

Keep it concise.

The executive summary should be about 1-2 pages at most. Use clear, concise language and avoid unnecessary details. Focus on grabbing attention and interest.

Highlight Your Qualifications

Briefly summarize your team’s skills, experience, and expertise to showcase why you are the right people to lead this publishing company.

Include a Call-to-Action

With these tips, you can craft an executive summary that piques interest in your full business plan. Remember to make it skimmable, focused, and persuasive. This summary could make or break whether potential investors dig deeper, so perfect it!

Financial Projections and Analysis for Your Publishing Company’s Business Plan

Creating accurate financial projections is critical to any publishing company’s business plan. These projections allow you to forecast expenses, sales, and profitability over the next several years. While financial projections require some guesswork, they should be based on thorough market research and realistic assumptions.

Key Financial Statements

Financial analysis.

Conducting this financial analysis will provide invaluable insight into the economic feasibility of your publishing business. It enables you to identify potential issues and adjust your projections as needed.

Presenting the Financials

Well-prepared financial projections are hugely important for attracting investors to your publishing startup. Master this complex but essential aspect of the business planning process.

Editing and Proofreading Your Business Plan

Thorough editing and proofreading are crucial when creating a business plan for a publishing company. This is because your business plan is more than just an internal document—it’s a tool to persuade investors, partners, and other stakeholders that your publishing company is a viable investment. Here are some reasons why meticulous editing and proofreading are essential:

Professionalism

Editing ensures that your ideas are communicated clearly and effectively. It helps you eliminate unnecessary information, clarify complex concepts, and structure your content logically. A clear, concise business plan is easier to read and understand, which increases its persuasive power.

Proofreading helps you catch and correct grammar, spelling, punctuation, and formatting errors. Even small mistakes can undermine the credibility of your business plan. They can also lead to misunderstandings or confusion about key details, such as financial projections or marketing strategies.

Consistency

Persuasiveness.

Ultimately, your business plan must convince readers that your publishing company is a good investment. Effective editing and proofreading help you build a compelling case by ensuring your arguments are clear, your evidence is accurate, and your language is persuasive. In conclusion, thorough editing and proofreading are vital steps in creating a business plan for a publishing company. By dedicating time and attention to these tasks, you can enhance the clarity, accuracy, consistency, and persuasiveness of your business plan, increasing your chances of securing investment and achieving your business goals.

In this post, we’ve covered a lot of ground on mastering the art of creating a business plan for a publishing company. Let’s recap some of the key takeaways:

When crafting your business plan, conduct thorough market research, analyze the competition, set realistic goals, and project financials. The executive summary should capture the essence of your business plan and excite investors.

Creating financial projections will demonstrate the viability of your publishing company. Include key statements like your income, balance, and cash flow statements.

Don’t let the business plan writing process intimidate you. Please start with the essential components we outlined, do your research, and get feedback from mentors. The hard work you put into your business plan will pay off tremendously.

Remember, success doesn’t happen overnight. Stay committed to your goals and keep moving forward one step at a time. With focus and perseverance, you can master the art of business planning and make your publishing company dreams a reality.

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Blog • Understanding Publishing

Last updated on Feb 07, 2023

How to Start a Publishing Company in 2024

If you’ve ever watched the reality show Shark Tank , you may have found yourself daydreaming about starting your own business. And if you’re an indie author who’s learning the self-publishing ropes, you might be wondering if you should start your own publishing business — as opposed to just doing everything under your own name.

So before we get to the details of how to start a publishing company, let’s start by addressing that question first: should you start a publishing company? The answer might be yes if you: 

• Are publishing one or more series of books (the hassle of starting a company might not be worth it if you’re looking to publish just one title)
• Are working in an area with a higher risk of liability (such as health-related or technical books) — or are simply looking for added protection of your personal assets
• Are looking to operate as a “professional” writer (as opposed to a “hobbyist” writer)
• Have a concrete brand that you would like to expand to include similar books by other authors

If these criteria don’t apply to you, you’re likely better off publishing your books under your own name. But if they ring a bell, then this guide to starting a publishing company is a great place to start.

Note: this advice is not coming from legal professionals, and any business ventures should be taken after consideration of local laws and consulting with professionals. What follows mainly applies to starting a company in the United States.

Disclaimer withstanding, let’s get started!

The benefits of starting your own publishing company

To help you better understand whether this is the right time for you to start your own publishing company, let’s look at the benefits a little closer.

Air of professionalism

While self-publishing is a major accomplishment that should be viewed with pride, many bookstores and libraries will not stock their shelves with books clearly published by authors. In addition, readers are often less likely to purchase an obviously self-published title as they’d prefer to go with books that have been vetted by publishers — which of course means they’re missing out on some great reads!

One of the most obvious markers of a self-published title is that the author’s name is listed as the publisher. However, if you start your own publishing company — say, Reedsy LLC or Reedsy Publishing — you can use that name as the imprint, which might give your book a more “professional” air.

Tax benefits

What is the difference between the IRS seeing your publishing endeavors as a hobby versus a business? Well, if it’s a hobby, then those expenses can only be deducted from your writing income. If they consider those activities as a business, on the other hand, you might be able to deduct writing and publishing-related expenses from your non-writing income.

The IRS encourages entrepreneurs by assuming new businesses will lose money from the outset, and allowing them to offset those losses with tax breaks. If you want to enjoy the tax benefits the IRS affords, then it’s key to operate as a business — and and to show that you are running that business with the aim of making a profit.

Protection from liability

You don’t hear about independently published authors getting sued every day. However, writers who want added protection against any crumbling cookies will find assurance in that fact that when you incorporate or start a business such as an LLC, your personal income and assets are protected.

The ability to grow your brand

Indie authors unite? If you've already set up the infrastructure (a mailing list, traction with sales on Amazon, etc.), then looking beyond your own repertoire of titles and publishing more books that appeal to similar readers is a good idea. You can leverage all your hard work establishing your business and learning marketing to expand your brand and sell more books without having to do all the writing yourself. Of course, this comes with the added responsibility of royalty payments.

How to start a publishing company

Before you can fire up the presses and take the publishing world by storm, there are a few T’s to cross and I’s to dot to give your business the best chance for success. Here is a simple process for starting a publishing company in seven steps:

1. Set goals for your publishing company

Starting a publishing company requires authors to fully become an entrepreneur in their own right and is not an endeavor to be taken lightly. If you’re toying with the idea, here are a few questions to ask yourself:

• Why do you want to start a publishing company?
• What kind of books do you want to publish?
• Will you publish your books only, or titles from other authors, too?
• What income range are you expecting this business to yield?
• How do you see your business growing in the next year? Five years? Ten years?

These are questions you should readily and passionately be able to answer before you get started, as they will affect your business decisions.

2. Choose a business structure

We know, we know, can’t we just skip ahead to the fun part, like choosing a company name? Not just yet, there’s some important groundwork to be laid first, like deciding exactly what type of company you are looking to start.

Businesses come in many shapes and forms. When it comes to publishing in most territories, the main choices are:

• Sole proprietorship: a business operated and owned by one person. The simplest business form, but not the most risk-free (keep reading).
• Corporation: a group of people or an organization authorized to manage the company as a single entity. A more complex business form.
• Partnership: two or more parties contractually agree to manage and operate a business
• LLC: provides the protection of assets that a corporation receives with versatility and pass-through tax benefits of a partnership or sole proprietorship (meaning a business taxes can be paid through someone’s personal tax return).

Most authors will decide to start their own publishing companies as an LLC or sole proprietorship, as these are the most flexible and simple business forms of the bunch. However, our personal suggestion is that you set up as an LLC . As mentioned before, LLCs offer the most liability protection , meaning your personal assets are protected from any debts incurred by the business.

For more information on what structure best suits your goals , check out the Small Business Administration .

3. Pick a business name

After all that business talk it’s time to have some fun: it’s time to christen your publishing company! Here’s a couple of things to keep in mind when deciding on a name :

• Branding. What market or niche are you targeting? In which genre does your company publish? These questions will help you refine your company’s brand — and its name should be a reflection of that. If you’re planning to publish middle-grade fiction primarily, choose a name that reflects that. Take a look at other publishing companies to get a sense of how their name reflects their brand.
• Relatability. We live in a fast-paced world and your allotted time frame to capture someone’s attention is slim to none. So it pays to be strategic when coming up with a name, and to use words that readers will already be familiar with. If there’s a made-up word you really want to use, ask yourself what it will communicate — if anything — to people at first glance.
• Keep it short and to the point. Superkalifragilistikexpialigetisch Press isn’t a smart move.
• Don’t use the word “Inc.” unless you are actually planning to incorporate your business

Finally, make sure whatever name you choose hasn’t already been taken! Check if the name is already trademarked and then search for the availability of the URL-version on a domain registrar site like GoDaddy.

Obtain your Employer Identification Number (EIN)

Once you have a business name, you have to register it with the government. This is a nine-digit number provided by the IRS that includes information about the state the business is registered in. Think of it a bit like your company’s social insurance number. Learn more here .

4. Open a business bank account

After you’ve received an EIN, you can register for a business bank account which will allow you to keep your business and personal finances separate. This will ensure your personal assets are protected should a lawsuit ever arise (knock on wood, this is just a precaution!) and it will make it easier for you come tax season.

Also, consider setting up a PayPal account for online transactions.

5. Set up an accounting process

Stifle that yawn, because this is an important, can’t-be-overlooked step! Whether you’re using a free resource like Google Sheets, a paid tool like Quickbooks, or outsourcing accounting work to a professional, nailing your bookkeeping practices down from the start is essential. It will help you track which of your efforts are paying off and ensure you have a record of all expenses which will be handy for tax write-offs.

Here are a few pieces of accounting software that might come in handy:

• Quickbooks. With over 4.8 million users worldwide, it’s one of the most popular accounting applications. While it has a vast number of tools for all kinds of business (brick and mortar, e-commerce , home-based, etc.), it caters especially to small businesses.
• Freshbooks. A great option for invoicing needs , it allows users to easily add billable time and expenses, customize the look of the invoice, and set up recurring invoices, automatic payment reminders, and late fees.
• Zoho Books. This is a good option for very small businesses looking for a simple solution. It offers basic accounting features, with the option to integrate and access advanced tools as your business grows.
• Wave Financial. If you’re looking for a free option , this might be your best bet. It doesn’t have any bells and whistles, but it does offer no-charge, cloud-based accounting functions designed specifically for small businesses.

6. Create a company website

When people want to know more about your company, it’s likely their natural response will be to Google it. A website is the best way to capture those interested leads and to tell people more about your business. 

You may be tempted to add a page to your author website, but that would be a mistake. Ideally, your publishing company should have its own public identity and branding, even if it starts out only publishing your work. If you want to gain an air of professionalism, this is the way to go. 

Again, we recommend GoDaddy for registering your domain name. A free domain like yourcompany.wordpress.com just won’t do. 

7. Grow your team of publishing professionals

Trust us, your publishing company will only get by with a little help from some friends. Professional ones, hopefully, with lots of experience in publishing. Growing your team is especially necessary if you want to become one of the big players in publishing .

Launching successful titles comes with a lot of specialized work, such as editing, cover design, interior formatting, web design, marketing, etc. Luckily you can turn to online marketplaces (such as Reedsy !) to hire those services — and you don’t need to break the bank at the same time. One of the benefits of starting a publishing company these days is that you can keep things pretty lean by building a network of freelancers you trust, without getting tied down to a head-count.

MEET THE BEST PUBLISHING PROFESSIONALS

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And you won’t be alone: more and more traditional publishers are looking to freelancers to help develop books .

We hope this information helps you decide whether starting a company is the right path for you, and, if so, how to start a publishing company that hits the ground running.

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According to estimates published by the United States Census Bureau, retail book sales exceeded $16 billion per year in 2009. If you want a piece of the book-selling pie, start your own book publishing company. Whether you plan to sell printed or online e-books, the overall process of starting up a book publishing company is about the same.

Choose a book genre and market segment to target. Decide if you want to publish fiction or non-fiction titles. Narrow the genre and segment as much as possible — for instance, romance novels for women ages 35 to 45 — and use this information when you are formulating your overall book-publishing plan.

Select a name to represent your book publishing company. Register your new company with the state if you plan to accept sales directly from readers, since you may have to collect sales tax depending on your state requirements.

Create a marketing plan as well as a general business plan to guide the operation of your book publishing company. Include information regarding how many titles you plan to publish each year, your budget and advertising plan.

Compose a listing of libraries and bookstores both locally and nationwide where your authors can visit at each book release to promote and publicize their books. Compiling a database of possible book signing locations allows you to put together book tours more efficiently.

Commission writers from your chosen genre to publish with your company. Draw up a book-publishing contract outlining each arrangement, including royalty rates, payment frequency, rights, options and manuscript delivery requirements for each book.

Hire a reliable and professional book editor, typesetter, designer and printing company to handle the formatting and production of your manuscripts. If you plan to publish e-books, you don't need a printer.

Establish arrangements with book distributors and wholesalers to carry your books. They will likely want to see your marketing plan to see how you plan to get the word out about your titles.

Establish a book publishing website to attract readers and new potential authors as well as interested parties, such as reviewers.

• Foner Books: Book Sales Statistics
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Louise Balle has been writing Web articles since 2004, covering everything from business promotion to topics on beauty. Her work can be found on various websites. She has a small-business background and experience as a layout and graphics designer for Web and book projects.

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The Publishing Business Plan ; 7 Essential Elements

If you are like most aspiring authors, the idea of becoming a published author probably excites you. Even if you are planning to produce an ebook to boost your business, adding “author” to your credentials could represent the fulfillment of a dream you’ve had your whole life or might catapult you into the ranks of the other authorities and thought leaders in your industry.

It’s important to realize that you are not just becoming an author. You are also becoming a publisher. And with that new title comes a new start-up business.

Author vs. Entrepreneur

If you are like most aspiring authors, you may just want to write. You may have no desire to become an entrepreneur. Most writers don’t realize that when they decide to self-publish their work they are making a decision to go into business.

In fact, when you choose to self-publish a book—any type of book— you go into business for yourself. You actually become a publisher and open a publishing company.

You go into the business of writing, producing, and publishing your own books. To a certain extent, you also are responsible for distributing those books, or for finding a way to do so.

If you are writing ebooks to support your existing business, you now have a new business venture to support. As with any other business, it takes time, effort…and money.

How to Create a Business Plan for Your Indie Publishing Company

Besides your good, marketable ebook ideas, you need a variety of things to get your publishing business up and running. First, you need a business plan.

Any seasoned entrepreneur will tell you a plan is necessary to start a company.

A book proposal serves as a great template for such a plan since initially you are creating a plan that revolves around one book. You don’t need to traditionally publish to use it as your business plan; a book proposal serves as an excellent business plan for an indie publisher as well.

This template can be expanded to serve as a business plan for your whole publishing company. I write about this extensively in my new book, The Author Training Manual .

A book proposal is used to prove to a publisher the marketability of a book idea. You want to prove to yourself , since you are the publisher, that your book idea is viable—that it will sell and make you money. And you want to make sure it will enhance, not detract from, your current business.

Seven Essential Publishing Business Plan Elements

There are seven essential elements that should be in every publishing entrepreneur’s business plan:

• A “Resources Necessary to Complete the Book” Calculation

Before you begin any business, or any project, be sure you can afford it. For example, aspiring authors are often shocked at the cost of editing a manuscript, which can prove much more costly than design. Determine what resources you need to complete your book. At the minimum, these can include:

• ISBN numbers
• Ebook conversion
• Permissions
• Review copies
• A Break-Even Analysis

It’s extremely difficult to achieve success if you haven’t defined it. The publishing industry defines success in terms of book sales, and as a publisher, sales must become part of your definition. Must you sell 500, 1000 or even more copies per year to earn back your investment and start making money?

A “break-even analysis” will help you determine this. This entails knowing what it cost to produce your book. Beyond this, how much money do you want to make?

Most companies have monthly, quarterly, semi-annual, and annual goals to meet. This helps them continuously move toward their vision of success—their long-term goal. As the publisher, it’s up to you to create the goals for your company.

• A Promotion Plan

Be sure you create a sound promotion plan for your book. Promotion helps sell books, so this is an important aspect of the book publishing business.

• A Profit and Loss Statement

To keep track of how your company fares financially, you need a profit and loss statement. This allows you to determine if your start up is getting out of the red and into the black. You need to know if your company is actually making money—or if you are losing it. If you publish more than one book, you’ll need to track each.

• Contractor Lists, License Information and Legal Plans

Create a list of contractors you will use to help you run your business—editors, designers, virtual assistants, accountants, etc. Then make a list of the licenses you will need, such as to set up your business in the county where you live, with the tax office, etc.

Then make a list of additional business-related things you need to do, such as set up bank accounts and possibly incorporate your business to reduce personal liability.

• Branding Plans

Make sure you have plans for a website, logo and how you might develop your brand with more books and related products and services. A good publisher always thinks beyond one book.

In fact, you’ll sell more books if you write more books. And you’ll earn more money as an author if you brainstorm additional ways to build a business around your book.

[pullquote position=”right”]The most successful start-up companies are based on sound business plans.[/pullquote] If you are already a business person, you know this. Now apply it to your desire to become an author and self-publish an ebook (or more than one) — to become a successful publisher.

If you are writing an ebook to start a business venture, then treat your desire to get published like an entrepreneurial venture from day one. If you see yourself as a publisher, you’ll be more successful if you do!

This article was originally published on The Future of Ink and is reprinted here in its entirety for our Magnolia Media Network readers.

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For a self-published author, a business plan begins with a mission statement that will help direct your decision making at every stage of the book writing, book promotion, and book selling processes.

As a self-published author, your business plan, even a short one, will help set expectations and reach your goals. Creating a business plan requires that you study the marketplace, research a competitive analysis, and make financial projections.

If you are a one-book author, your business plan might consist of one simple document. If you are planning many books, or your book is tied to a product or service, it will necessarily be more complicated. There are many business plan templates on the web and in books that help.

Your mission and goals

Possibly the most valuable thing a business plan can do is to help you articulate your mission. Whenever you have to make a decision, you can return to your mission statement to help determine if the action you are about to take serves it. You may be tempted to skip this step and just blindly jump into publishing your book, but think it out, write it down and modify it as you become more aware of the challenges of becoming an author.

Authors have told me again and again that this step has helped give them a reality check and eased their mind about writing and publishing.

For example, why are you writing this book? Is your mission to change the world, to make money, to support your business, to leave a family legacy? Your goal may be to entertain or inform a small audience‚ a family or community‚ or a larger audience in a geographic area, profession, lifestyle, or interest group. Maybe you are writing to establish yourself as an expert in your field or to promote other products and services you offer. (Do you envision spinoff DVDs, workshops, a line of gourmet cookware?) Perhaps you are shooting for an international bestseller? It has been known to happen!

Perhaps you are among the many traditionally published authors disillusioned with the industry who are turning to self-publishing and creating your own small press. Will you use your book as part of a book proposal to try to attract an agent and publisher?

Raising funds

While it may be difficult to make a living as an author, it’s actually not all that hard to raise enough funds to create, produce, and publish your book. You may self-fund with your day job, or perhaps you’re retired with a small income. There are other ways to raise funds, too. Pre-selling is an option and crowdfunding has enabled lots of authors to finish their books and spread their message. Pre-selling is rather easier than crowdfunding, which requires lots of thought, planning, and marketing.

If you have a store on your website, you can begin pre-selling whenever you like, and you keep the profits (minus shipping and any store merchant account fees you may incur). Gumroad, Sellfy, and Selz are great storefronts with widgets that you can embed on your site to sell beta and final versions of your eBook and print book. They’re easier to use than PayPal, eJunkie, Amazon’s solutions.

Author crowdfunding

Many authors are choosing to crowdfund their work, and there are now many platforms to choose from. The most well known are Kickstarter, IndieGoGo, and PubLaunch. To explore the pros and cons of each platform, I interviewed successful authors from each of them to find out why they chose it and to get tips for you from their success. Publisher-crowdfunded platforms have also cropped up and below I describe Inkshares and Unbound. The information here is adapted from my in-depth PBS MediaShift series on author crowdfunding. [Ed. note: we also profiled Publishizer in a previous blog post.]

Kickstarter

Since Kickstarter ’s launch in 2009, more than 5.2 million people have pledged more than $900 million, funding nearly 53,000 creative projects like films, games, books, music, art, design and technology. Project creators set a funding goal and deadline. If people like a project, they can pledge money to make it happen. Funding on Kickstarter is all-or-nothing. Projects must reach their funding goals to receive any money. To date, nearly 44% of projects have reached their funding goals. Kickstarter takes 5% of the funds raised. Funders pay via Amazon Payments (only), which then will apply credit card processing fees (between 3% and 5%).

PubLaunch acquired PubSlush this year and will officially relaunch in February 2016. I don’t know how much of PubSlush’s business model they will keep, but it’s clear that their crowdfunding platform will remain focused on authors, so stay tuned. So far they promise a crowdfunding service and a vetted industry marketplace where you can find the right publishing professionals for your book.

IndieGoGo was founded in 2007 as a place where people who want to raise money can create fundraising campaigns to tell their story and get the word out. It charges 4% of the money you raise if you meet your goal or 9% if you do not.

Other good crowdfunding programs are Inkshares (San Francisco) and Unbound (in the UK). The Leanpub iterative publishing platform allows you to sell as you write your book, or to serialize your book.

Your sales strategy

Your bookselling journey may be a short one, or it might be a long, fluid, and creative process. It can sometimes take years for a book to take off, so set up good channels, good relationships, and good communities. Never stop marketing. There are many ways to sell.

POD sales. By printing and distributing with a POD service, your print book is mailed to customers on-demand when they order from online retailers in their expanded distribution program.

eBook sales. Create and sell eBooks in many formats for many eBook readers, for sales and distribution in the widest possible array of online markets.

Direct. Use your website for direct sales in your own on-line store for both print and digital books. You can sell using PayPal , eJunkie , Gumroad , Selz , Sellfy or by using any number of integrated payment systems.

Mailing physical books. Books fit nicely in a free USPS Priority Mail envelope, and a stamp costs about $5. (You can charge the customer for shipping.) Customers will receive the book in two days, which makes them very happy, especially during the holidays, and especially if it’s autographed. Do send your books priority or first-class mail. The drastically lower cost of media mail might be tempting, but it can take a very long time to deliver, and sometimes (especially during the holidays) your book is likely to arrive to the customer later than they want. It also may be damaged, as media mail bangs around at the bottom of the pile.

Retail sales. Sell to brick-and-mortar booksellers and retailers in your niche. When you sell direct to retailers, you can negotiate their discount. 40 to 50% is standard. You will probably be asked to sell on consignment, which means you won’t be paid until the books are sold.

Back-of-room sales. Take advantage of back-of-room sales at personal appearances to earn 100% of profits. At some events, you may be asked to pay a small percentage to the organization or tip a cashier.

Specialty distribution. It’s also possible to sell through specialty distributors‚ for example, someone who travels to conferences and sells books for you. Expect to discount your book 50 to 55%.

Exclusive distribution

If you’ve written a book to boost your business you may want to offload sales and distribution to a company who specializes in these tasks. These kinds of companies only take on books they think they can sell, so you’ll need to pitch them. They also take a lot of your profits, 65% and up. The most popular solution for indie authors with commercially viable projects is IPG’s Small Press United (SPU). SPU was formed as a branch of IPG’s distribution service for traditional publishers to serve self-publishers. All the authors I know who have used them like them a lot. You may also choose a specialty small press to serve as your distributor. The sooner in the book creation process you can contact them, the better. They may have valuable insights and advice on editing, design, and production.

Pricing your book

You may be tempted to calculate the price of your book based on what it cost to produce it. That doesn’t work; you really need to price your book to compete in the marketplace. eBook prices are all over the place, but are becoming standardized at 20% to 25% less than the least expensive print edition. $9.99 also seems to be a consumer-accepted price for eBooks.

Image vis ShutterStock.com .

This post was excerpted and adapted from Carla King’s Self Publishing Boot Camp guide for authors. Published with permission.

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