how to get a business plan published

Kindlepreneur

Book Marketing for Self-Publishing Authors

Home / Book Publishing / How to Start a Publishing Company: Legal + Strategy

How to Start a Publishing Company: Legal + Strategy

Note: This article was updated on December 18, 2024, to include the Corporate Transparency Act (CTA) and the Beneficial Ownership Information (BOI) filing requirements.

Whether you are looking to start a formal business that publishes other people's books, or are an author that is looking for extra protections and wanting to legitimize their author endeavors, knowing how to start a publishing company the right way is incredibly important.

If you miss a step or do it improperly, you can not only have issues with your business, you can also run into legal issues.

Luckily, as someone who has not only started multiple companies, but also run a very successful publishing company in the past, I've learned thing or two in setting these up. I've made mistakes and had some ‘expensive lessons' that I hope no one else has to learn the hard way like I did.

Therefore, in this article, I'm going to show you exactly how you create an establish a strong publishing company and protect your books in the process.

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.

Table of contents

• 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.

Before getting into this though, it is important to note that 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.

Also, 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.

Before we get into setting up a publishing business, it's important to establish whether or not this is the right move for you. Because as you'll find, not everyone should. I'll explain.

There are two main scenarios that I've found with people asking about starting up their own publishing company. The first is the author who wants to protect themselves and have more control over their work. And second, is someone who may not be the author, but wants to publish other books as it can help to build creditability and legitimacy within the industry through an LLC.

If you are an author who is looking to protect yourself, because you're making significant amounts of money from your sales, or you write in a subject matter that could be liable, or even are looking to have more control over your work, then moving your own writing under your own publishing company can be a prudent move.

Note: I only recommend authors consider doing this if they are making above $7k a month from their books. Or are writing in a subject matter that could be problematic or liable.

Some of the benefits for you would be:

• Maintains control over your work
• Gives you access to more than one Amazon KDP account
• Protects yourself, your work, and your personal assets in case of a lawsuit
• Manages of your intellectual property
• Shifts your mindset from a hobby writer to a business owner

While on the other hand, if you are looking to establish a company to publishing other people's books, here are a few benefits to doing that:

• Conveys professionalism and expertise
• 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
• Allows for certain tax write-offs

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. But as you can see, it's definitely something that can help and provide even more opportunities within the industry.

So, now that we have discussed what some benefits are that could help you, let's break the most common of them down.

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.

Now, if you as a writer defamed someone, invaded their privacy, or otherwise broke the law by saying things that are deemed unlawful, then you can be held personally liable under those laws and your assets are unlikely to be protected by the business entity you form. Plus, 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 when properly formed and there are other instances where the formation can protect you by separating between the two. 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 do 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.

Book Marketing Made Simple

Over 47,000+ authors, NYT bestsellers, and publishing companies use Publisher Rocket to gain key insight to the market.  Help your book now

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 a month, 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 $50,000 a year in book sales.
• 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 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.

Related Posts

How to copyright a book in 4 simple steps [lawyer-approved], beneficial ownership information (boi) for authors: everything you need to know, book scams on amazon: what authors need to know & beware, sell more books on amazon, amazon kindle rankings e-book.

Learn how to rank your Kindle book #1 on Amazon with our collection of time-tested tips and tricks.

155 thoughts on “ How to Start a Publishing Company: Legal + Strategy ”

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.

Comments are closed.

Join the community

Join 111,585 other authors who receive weekly emails from us to help them make more money selling books.

More From Forbes

Want to write a business book here are 10 things you need to know.

• Share to Facebook
• Share to Twitter
• Share to Linkedin

A major survey of business book authors provides insights into every aspect of writing a business ... [+] book.

You've got expertise, insights, and a story to tell. You're thinking about writing a business book. But is it worth the effort? A new study sheds light on what you can expect.

The Business Book ROI Study , conducted by Amplify Publishing Group, Gotham Ghostwriters, and Thought Leadership Leverage, surveyed 301 published nonfiction authors, including this writer. Amplify claims this is the largest-ever survey of published business authors. Their findings offer both a reality check and useful insights for aspiring authors.

1. Do you need a traditional publisher for your business book?

In the past, the main path to market for a business book was a traditional publisher. Today, the world is different. Self-publishing is comparatively easy. Hybrid publishers offer many of the same services as traditional publishers, but authors pay up front for these services. Hybrid publishing gives the author more control and input in the process, and also higher profit margins on book sales.

The study compared the profitability of the three paths. Traditional publishing led the pack with a median profit of $52,500. Hybrid publishing came in at $4,500, while self-publishing trailed at $1,700. Of course, these numbers need some interpretation.

Traditional publishers buy only titles they expect to sell well, and their books will be professionally produced. Hybrid publishers are more flexible but most enforce quality standards and avoid projects they think will fail. Self-publishing has no gatekeepers and quality can vary dramatically. The revenue differences likely say more about the selection process than the potential of each channel. I.e., a book that is good enough to yield a traditional publishing contract would almost certainly generate self-publishing revenue far above the average number.

And, profit isn't everything. Authors working with hybrid publishers reported higher satisfaction than those with traditional publishers. Traditional publishers add credibility to first-time authors but tend to have a much longer publishing process. Each path has pros and cons, and the aspiring author needs to weigh priorities when choosing.

Google’s Gmail Upgrade—Why You Need A New Email Address In 2025

‘tipping point’—crypto braced for $280 trillion price bitcoin reserve after trump picks, trump says us should take ownership of greenland and threatens panama canal takeover.

Authors were much happier with hybrid publishers than traditional. Fully 45% of hybrid authors strongly agreed that they were satisfied with their publisher vs. just 19% for those with traditional publishers.

Authors with hybrid publishers were more than twice as likely to strongly agree agree that they are ... [+] satisfied with their publisher than those with a traditonal publisher.

2. How long will it take to write my book?

The median author in the survey spent 10 months writing their book. Traditionally published authors took 12 months on average. Self-published authors took only 6 months. The longer times for traditional books could reflect typical publishing lead times, a more rigorous editing process, or other factors. If your contract says you’ll deliver your manuscript in ten months, you’ll probably take the full ten months to write it.

If your topic is very timely, hybrid and self-publishing will usually get your book to market much faster than traditional publishers.

3. Do you need a ghostwriter for your business book?

A ghostwriter is a writer who will write your book for you. They may work from interviews, your own writings, and other sources to create a coherent and, one hopes, compelling book. Just 8% of the authors surveyed used a ghostwriter. But, fully 96% of that small number were happy with the results.

Using a ghostwriter isn’t cheap. The median cost reported was $25,000. Ghostwriter fees can run much higher, particularly for those with a strong track record of hitting bestseller lists. On the plus side, profits and revenue were higher. Ghostwritten books achieved a median profit four times the average book. Once again, there’s a selection bias - an author who hires a ghostwriter likely will invest more in promotion and other factors that increase sales.

4. Can you make money from a business book?

Good news: 64% of business books showed a gross profit. The median profit for books out at least 6 months was $11,350. But don't quit your day job just yet. The range of outcomes is vast, from significant losses to multi-million dollar profits.

Here's a key insight: book sales alone rarely drive profitability. The median book generated $18,200 in revenue. But speaking fees, consulting, and workshops often brought in much more. Here are median numbers for alternate revenue sources as reported by the surveyed authors:

• Speaking fees generated a median revenue of $30,000.
• Consulting produced a median revenue of $50,000.
• Workshops brought in a median revenue of $40,000.
• Organization sales resulted in a median revenue of $64,000.
• Online courses had a median revenue of $20,000.
• Partnerships had a median revenue of $100,000.
• Salary increases had a median revenue of $10,000.

Note that these numbers are self-reported and median values. Not all authors have all types of income. An author of a best-selling business book might earn the $30K median (or more) for a single speaking engagement, while many other authors won’t generate any speaking income at all.

5. How much should you invest in your business book?

The median author spent $7,000 on their book. This covered expenses like editors, graphic designers, and PR agencies. Hybrid-published authors typically spent more, with a median of $23,000. Investing in your book seems to pay off - on average, each dollar spent correlated with $2.33 in additional revenue.

Be prepared for surprises: half of the authors reported unexpected costs. It's smart to build a buffer into your budget.

6. What drives business book success?

Three factors stood out:

• Clear strategy: Authors with a strong revenue plan earned twice as much as those without.
• Professional support: Ghostwritten books had a median gross profit of $43,250. Books with launch PR teams hit $55,500.
• Effective marketing: Email campaigns, Amazon reviews, and contributed articles topped the list. On social media, LinkedIn shone while X (Twitter) disappointed.

7. Don’t just focus on book sales

Here’s one key paragraph from the report: “Book sales rarely met expectations. Median sales were 4,600 for traditionally published books, 1,600 for hybrid-published books, and 700 for self-published books. But book sales didn’t predict success or ROI.”

In short, even though book sales were lower than expected, most authors met their non-monetary or revenue goals. This suggests that authors should focus less on driving book sales and more on achieving their other goals.

Only about half of authors in the study had a clear revenue plan. But, those authors who had a strong plan earned twice as much as those without. Also, authors who had a specific plan for achieving their primary goal were more likely to have their process go as expected.

8. Is it all about the money?

Writing a business book may not be a sure-fire way to make money, but that’s not the only reason authors write books. A whopping 90% of authors reported non-monetary benefits. These included increased credibility, a stronger personal brand, and more speaking opportunities.

One in three saw increases in speaking fees and consulting gigs. Many noted improved social recognition and media presence.

9. What do successful business book authors say?

The study captured insights from authors who've been there. One hybrid-published author advised, "Authors don't make money on book sales. They make money on what the book makes possible. Spend time and money on getting the book off the shelf."

A traditionally published author shared, "The money comes not from selling your book, but from having written—and published—a book... and all that comes along with it, including boosting your visibility and your credibility as a thought leader and expert in your field."

10. Should you write that business book?

The report can’t answer that question for you, but it suggests that a potential author who has a desire to write a book can find a way to do it. More importantly, if you do publish your book, you’ll likely be satisfied with the results. 89% of the authors agreed that writing a book was a good idea. A significant percentage, 72%, strongly agreed with that sentiment.

The 32 page report is packed with insights that can guide both experienced and first time authors. It won’t help you write the book, but it may inform your planning process.

If you decide to move forward with your business book project, do so with open eyes. Set realistic expectations, plan your strategy, and consider the book as part of achieving your broader business and personal goals. With the right approach, your book will open doors you never imagined.

• Editorial Standards
• Forbes Accolades

Join The Conversation

One Community. Many Voices. Create a free account to share your thoughts. 

Forbes Community Guidelines

Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space.

In order to do so, please follow the posting rules in our site's  Terms of Service.   We've summarized some of those key rules below. Simply put, keep it civil.

Your post will be rejected if we notice that it seems to contain:

• False or intentionally out-of-context or misleading information
• Insults, profanity, incoherent, obscene or inflammatory language or threats of any kind
• Attacks on the identity of other commenters or the article's author
• Content that otherwise violates our site's  terms.

User accounts will be blocked if we notice or believe that users are engaged in:

• Continuous attempts to re-post comments that have been previously moderated/rejected
• Racist, sexist, homophobic or other discriminatory comments
• Attempts or tactics that put the site security at risk
• Actions that otherwise violate our site's  terms.

So, how can you be a power user?

• Stay on topic and share your insights
• Feel free to be clear and thoughtful to get your point across
• ‘Like’ or ‘Dislike’ to show your point of view.
• Protect your community.
• Use the report tool to alert us when someone breaks the rules.

Thanks for reading our community guidelines. Please read the full list of posting rules found in our site's  Terms of Service.

How to Start a Publishing Company: A Great Big Overview

There are several reasons a person might want to learn how to start a publishing company—like an official one with paperwork and a business bank account and all that.

Maybe you plan to self-publish and want to help bookstores and readers take your book seriously with the help of an imprint logo on the spine and an ISBN that belongs to an actual publishing company.

Maybe you’ve been self-publishing and are ready to turn your indie author experiment into an intentional business. Or you’ve been so successful at selling your own books you’ve decided to set up an LLC and start acquiring books from other authors.

Or maybe you’ve never written a book and don’t plan to. You just know great writing when you see it and want to team up with promising authors.

Whatever the reason, you’re at the beginning of a thrilling journey. It won’t be easy, though. Running your own business is complicated and time-consuming no matter what industry you’re in. And heaven knows publishing comes with plenty of its own unique challenges.

So I can’t promise you that this guide has everything you need to know to start a publishing company. You’re gonna want to read a lot of articles. And books. And listen to podcasts, attend publishing conferences, and definitely reach out to people who’ve already had success as publishers.

My goal in this article is to give you a clear overview of how to start a publishing company. We’ll talk about:

• How your company fits into the wider publishing world
• How to research and plan for success
• Legal and regulatory considerations
• How to set up your business
• Financial management tips
• The process of publishing, promoting, and scaling, whether you publish your own work or someone else’s

Hopefully, by the time we’re done, you’ll have a clearer sense of where you’re heading and what you need to do next. Let’s get started.  

Quick Overview of the Publishing Landscape

When a person sets out to publish a book, they essentially have two options: traditional publishing and self-publishing.

There’s technically a third option, hybrid publishing, in which the author pays a hybrid publisher to publish their book. But that particular approach is less common, potentially predatory , and not really what this article is about. If you want to know more about it, we discuss it in this article .

For now, let’s look at the two more typical options and how your future business fits into the larger publishing industry.

Traditional Publishing

In traditional publishing , a publishing company takes care of editing, producing, distributing, and (usually) marketing a book. They pay royalties to the author. Royalties are a percentage of the profits. You can learn more about those puppies here .

When people think of traditional publishers, they most often think of the Big Five, which include major publishing houses like Penguin Random House and Macmillan. But small publishing companies count, too.

So if you start your own company and acquire other authors’ books, those authors will be traditionally published through your imprint.

Self-Publishing

In self-publishing, the author does everything themselves. They might hire editors, a cover designer, or other professionals to execute aspects of the process that require special skills. But ultimately, it’s up to them to oversee the vision and put up the money to get it done.

If you start a publishing company with the goal of releasing your own books under that imprint, you’re still a self-published author.

Why Starting Your Very Own Publishing Company is a Thing

If you choose to self-publish, you’re technically a publisher. You don’t actually have to establish an official publishing company. You can self-publish your book under your own name and pay taxes on that income as an independent contractor. You know, keep things super simple.

So why do so many self-published authors choose to create publishing company?

Some do it because they actually want to own a publishing business. They don’t want to stop at their own work. They’d like to build a full catalog of books from a wide range of authors. To do that, they have to establish the proper business structure for building a team and paying authors.

Others like the air of legitimacy that comes with having the name of a for-real publishing company linked to their books. They also dig the legal protection involved in setting up a registered business, assuming they choose the right business structure for that. We’ll talk more about that in a bit.

Plus, when you start a publishing company, it’s a signal to yourself that you plan to treat your self-publishing journey as a business rather than a hobby or experiment. 

Add in the fact that starting your own publishing business is easier than ever in the digital age, and the choice feels obvious for many self-published authors. That doesn’t mean it’s the perfect path for everyone, but if you’re thinking it might be yours , read on.

Researching the Market and Creating a Business Plan

The first step in starting a publishing company is establishing a vision and determining what you need to do to make that vision work.

Who’s your audience? How will you find them and get them to buy your books? And what about your financial strategies? How will you get all those numbers to number the way you want them to?

The more specifically you can answer these questions, the likelier your odds of success once your publishing company is up and running. Let’s take a closer look at the details you need to nail down.

Finding Your Niche

How does your publishing company fit into the market?

You can start to answer this by looking at the high-level answers. Things like:

• Your genre and subgenre
• Your writing style
• The genre tropes you embrace

It actually helps a lot to create a mission statement, which is a declaration of your values and (non-financial) goals as a business. 

Honestly, I’ve always found mission statements to be pretty eye-roll-y, especially when they come from any for-profit endeavor. But in recent years, I’ve discovered that having that kind of clarity around what I want to put into the world has made me much better at focusing my writing and marketing efforts to connect with the readers who get me.

Do you want to publish dark mysteries that offer readers a spine-tingling escape? Spicy romance that challenges conventional assumptions about love? Narrative nonfiction that promotes empathy and understanding in a divided world?

A more specific vision will help you get a clearer sense of who your target audience is and how to grab their attention.

On that note, it’s also essential that you research your reader. Learn as much you can about their demographics and buying behaviors. Where do they hang out online? Where do they go for book recommendations? What are they saying about their favorite books?

Doug has a great article loaded with tips on researching your target market. I highly recommend you check it out.

Finally, get to know the current bestsellers in your genre so you can study what works. And keep tabs on emerging authors. If you hope to publish works other than your own, you might discover a self-published author who’s nailing the content but could really thrive with someone else overseeing the business end of things.

Creating Your Publishing Imprint

Once you have a sense of what your publishing company is all about, you can start thinking about your publishing imprint.

An imprint is the name you publish your books under. The major publishing houses have several imprints, each representing a specific area of focus. For example, Harlequin is a HarperCollins imprint that publishes romance.

As a small business, you’ll want to start with one publishing imprint. Think of this as your publishing brand. If you plan to only ever publish your own novels, this might overlap with your author brand .  

Your imprint's name and logo will appear on the spine of every book you publish. You’ll also want to set up a website, especially if you hope to attract other authors.

Developing a Business Plan

A business plan is a comprehensive document laying out how you plan to build and sustain a profitable publishing company. There’s way too much involved in a business plan for us to go over all of it here, but the short version is that you’ll want to include things like:

• Your mission statement
• Long-term goals
• Short-term goals
• Strategies for achieving those goals, including your publishing schedule and marketing tactics
• Financial projections, including budget, expenses, sales goals, and how long it will take to turn a profit

There’s a steep learning curve when it comes to running your own publishing business, so it’s a good idea to revisit and revise your business plan periodically. 

I also suggest doing a lot of research and staying conservative when it comes to those financial projections. You don’t want to drain your business bank account because you were betting on an immediate return on investment.

Legal and Regulatory Considerations

When you start a publishing company, you’re 1) starting a small business that 2) profits off of creative work that may or may not be your own. Both of those facts mean you’ll be held accountable for abiding by certain tax and copyright laws.

I’m going to give you an extremely general overview of what that could mean if you’re a U.S. citizen operating your business in the U.S. I’m not remotely qualified to give you tax or legal advice—plus, laws change—so this is just to give you a sense of the types of things you’ll want to consider as you set up your publishing company.

Please research current regulations and consult an accountant or lawyer before making decisions and drawing up contracts.

Registering Your Publishing Company as a Legal Entity

You’ll need to make your publishing company official in the eyes of the country and state. That means selecting which business structure you’d like to establish. Small publishing companies usually opt for either a sole proprietorship or a limited liability company (LLC). 

The biggest benefit of a sole proprietorship is that it’s cheap and easy. You’ll have to claim your business income on a Schedule C when you do your taxes, but you don’t even need to get an employer identification number (EIN) unless you plan to hire people. 

If you want to operate under a business name instead of your own name, you can file a Fictitious Business Name or DBA (“doing business as”). Fees vary by state, but they’re usually inexpensive.

A limited liability company comes with bigger fees, but it offers more legal protection. For example, if someone decides to sue your publishing company and you have an LLC, only your business’s assets will be on the line. If you’re operating as a sole proprietorship, they can go after your personal assets, too.

Whether you go with a DBA or LLC, you’ll need to decide on a business name. You can use your own name, the name of your publishing imprint, or something else entirely. 

Once you decide on a business structure and get an employer identification number (if you need one), you can set up a business bank account. Even if you’re operating as a sole proprietorship, it’s best to keep your personal finances separate from your company’s finances.

Copyright Laws and Intellectual Property Rights

Once again, I’m not remotely qualified to offer legal advice. So I won’t. What I will say is that if you plan to publish the work of other authors, you need to make sure you understand exactly which rights you hold under the contract.

Even if you realize their book would do great in Germany, you can’t start tapping into that market if the contract doesn’t grant you those rights.

You also need to watch for potential copyright violations in any book you publish, including yours. Make sure you work with a cover artist who knows how to determine which images, fonts, and elements are fair game, legally speaking.

Setting Up Operations

Now that you’ve got your own publishing company, it’s up to you to determine how this whole operation is going to work. You’re officially a business owner, which means everyone involved is looking to you to run the show.

Sounds like a lot of pressure, but with some careful planning, you’ll at least have a framework to start from. Plus, you’ve already got a business plan to help you stay focused on your goals, priorities, and strategies.

Let’s take a closer look at the things you’ll need to consider before you officially open shop. 

Processes and Guidelines

If you plan to publish the work of other authors, consider what the editorial process will look like. How will you acquire new titles? What standards must they meet in order to warrant the time and resources you’ll have to invest in them? 

Don’t just look for quality writing and a good story. You’re creating a brand and trying to compete in a saturated publishing industry. Consider what it means for a novel to align with your vision and what it will take to stand out in your target market.

Once you’ve selected a book, then what? How will you determine what you’re willing to offer the author in terms of advance and royalties? What will the contract look like? Again, it’s a good idea to consult with a lawyer on this.

From there, decide what factors will go into setting up your publishing schedule. How many books do you hope to publish in a year? Do you plan to do any season-specific releases, like holiday-themed books? 

How much time will you give yourself to deliver editorial feedback? How much time should you give an author to make changes? Once the content is ready, how long will it take for line editing, formatting, and packaging?

Remember to factor book launch strategies into your publishing calendar. Determine what you’ll need to do to create buzz and generate preorders. These details are important even if the only books you plan to publish are your own.

Of course, your systems are bound to change as you execute them. It’s important to adapt according to the market and your own capabilities, so leave a little room for flexibility. 

Building Your Team

When you first start a publishing company, you’ll probably want to hire other professionals on a contract basis. It’s just simpler and more affordable. Once you’ve had some success and are ready to grow your business, you might consider hiring employees.

Depending on your own skill set, you might choose to work with professionals like a developmental editor , line editor, cover designer, and/or marketing specialist. You might be able to handle one or some of these jobs yourself successfully. If you’ve already published a few books, you probably know what you do well. 

Ultimately, the key to building a great publishing team is being honest with yourself about your own skill set. You might save money by handling line editing or cover design yourself, but if you can’t do expert-level work, your readers will notice and point it out.

Having a logo and business name won’t make up for a product that your target audience perceives as amateur.

Financial Management

Let’s talk money. More specifically, let’s discuss what you’ll have to pay for upfront and where you can find the cash when you don’t have any books out there yet.

These are things you’ll want to think about when you first create your business plan and on an ongoing basis. Your business can only thrive and survive in the long term if you can get more money flowing in than going out before your resources run out.

What Goes in the Budget

You’ll likely have to make some tricky decisions about which business expenses to prioritize and which to skip, at least while your publishing company is still young.

This is not an exhaustive list, but remember to account for things like:

• Annual taxes and fees associated with registering and licensing a business
• Office supplies and equipment
• ISBNs (international standard book numbers—you’ll need one for every book you publish)
• Copyright registration fees
• Contractors (editors, sensitivity readers , cover designers, marketers, etc.)
• Advertising costs
• Website domain
• Subscriptions to trade publications
• Software and subscription-based programs
• Conferences and book festivals
• Associated travel expenses
• Author advances

Also consider additional expenses specific to the way you plan to do business. Will you release audiobooks or publish in foreign markets, for example? Then your budget should include things like narrators or translation services.

Plan for as much as you can ahead of time. When an unexpected expense arises, return to the budget to see if you’ll have to cut back somewhere else to make it work.

Funding Options

Now for the big question: how are you supposed to pay for all these things if you’re not already selling books?

One option is to keep your day job and fund your publishing company yourself. 

That’s not a fun suggestion, I know. If you’re already working while trying to start a publishing company, you won’t exactly be able to hit the ground running, as the business people say. But believe me, many publishing companies start that way, especially when it’s one author setting up a business to support their own novels.

You may be able to pursue grants created to support small businesses, but be aware that many grants are created for specific communities or missions, and even then, they’re unlikely to pay enough to let you quit your day job.

You could apply for a small business loan, but you’ll have to demonstrate that your business will be capable of paying off the loan. Not to mention, you’ll want to know you can pay off the loan, and it can be tough to predict when you’ll start making a profit if this is your first publishing adventure.

As for investors, publishing companies don’t have much luck with them in the traditional sense. That said, crowdfunding is an increasingly popular tactic for authors with a strong fan following. 

Brandon Sanderson is the most famous example of Kickstarter success(es), but many other writers have been able to get novels and special edition books funded by their own fans in advance. The caveat, of course, is that they already have a following or a super compelling nonfiction book that speaks directly to an unmet need.

If none of these options fit where you are right now and it’s looking like you’ll have to start small with your own money, that’s perfectly fine! The beauty of starting your own publishing business is that you can do it in your living room with the release of one novel and build from there.

Publishing Process

So you’ve got a business name, a strategy, a budget, and a vision. You’re ready to start knocking out some books. What does that look like?

Here’s an overview of the standard publishing process.

Manuscript Acquisition

If you only plan to publish novels you write, you can skip this section. If you’re hoping to add other authors to your catalog, stay right here.

First, you’ll need to make sure people know your publishing company exists and is legit. Make sure you’ve got a professional website up and running. Announce the founding of your company in trade publications. 

Then, when you’re ready, put out a call for submissions in places like Poets & Writers . Be clear about the type of work you’re looking for and whether you want to see the first chapter, 50 pages, or query only. Also, do your prospective writers a solid and mention how long they should wait to hear back from you.

Work with a lawyer ahead of time to draw up a contract so you can move quickly when you’re ready to make a deal. Just be aware that the author may wish to negotiate.  

Editing, Formatting, and Design 

It’s customary for the publisher to request some edits, so don’t be shy about sharing your notes . The author should be expecting it. Or, if there’s a developmental editor whose insight has already been valuable to you, you may wish to contract this work out to them. If you do, remember to factor their availability into your publishing schedule.

Once everybody’s happy with the story and prose, you’re ready for line editing and formatting . If either of these things are not major strengths for you, hire a professional. Typos and poor formatting will hurt you. More specifically, they’ll get called out in reviews.

The same is true for cover design. The book cover is your number one marketing tool, so make it a good one. You can find tips on cover design here .

Printing and Distribution

I would say that this is when you decide where and how you want to distribute the book, but that’s actually a decision for much earlier in the process so you can set up preorders and build relationships with bookstores.

So it’s more accurate to say that this is when you execute on your distribution strategy.

The options for how and where you sell are more expansive than ever, from staying exclusive to Amazon to managing direct sales through TikTok. It’s more than we can get into here, it’s an ever-changing landscape, and there are many factors to consider, so I’ll just recommend you do your research when the time comes to choose the best path for your business.

Marketing and Promotion

In today’s publishing industry, authors shoulder much of the marketing and promotion burden. Even the major publishing houses rarely give debut authors the same advertising push they used to.

Even so, promotional support and a wider reach are some of the biggest reasons authors choose to work with a publishing company instead of going it alone. Plus, you’re trying to make a profit for them and for yourself. 

So get ready to do some serious marketing, whether you’ve got a whole roster of authors or it’s just you on there. Your survival depends on it.

Developing a Marketing Plan

Take your target audience into account as you set up your marketing plan. What is the best way to reach them? What social media platforms do they hang out on? How do they interact with the authors they love? Where are they buying books? What resonates with them?

Study comparable titles and authors. Note what works for them as well as any efforts that seem to fall flat.

Once you’ve done a few bucket loads of research, do your best to lay out a plan for where, when, and how you’ll get this book in front of readers both leading up to the launch and after it’s released. 

Then, be flexible. As you move forward with your marketing plan, double down on what works and let go of what doesn’t.

Marketing Strategies

Of course, it’s easier to create a marketing plan when you have a sense of what tactics might be included in it. 

As always, the best strategies vary depending on your genre, target market, and shifting trends. That said, some common tactics include:

• Newsletter/email marketing
• Social media
• Paid advertising on platforms like Amazon and social media
• Book trailers
• Live author events
• Online author events 
• Cross-promotion with other authors
• Podcast appearances
• Newsletter swaps
• Launch party

You’ll also want to work on getting reviews out prior to the release of the book. And you’ll want to do a lot of this:

Building Relationships

The publishing business is just like every other business in that relationships can get you pretty far, especially when it comes to promotion.

Find ways to connect with bookstores and libraries. Engage with content from book influencers, podcasters, YouTubers, and book bloggers. Build relationships with other authors in the same genre. 

In time, all these relationships could open up more opportunities for cross-promotion, guest appearances, or—in the case of libraries and bookstores—more book sales.

Scaling Your Publishing Businesses

Making money is great and all, but at some point, you’ll want to figure out how to bring in even more income without investing an equivalent amount in time and resources. That’s the key to sustaining a publishing company over time.

Here are some scaling strategies to keep in mind as you grow your business:

Expanding Your Catalogue

One of the best ways to scale your business is to just have more products to sell. Go figure. 

Admittedly, each book you publish requires a significant investment of both time and money, but once it’s out there, it’s a product you can sell forever. You’ll still have to invest in marketing, but you’ll eventually have some word-of-mouth assistance from readers who love the book. Plus, every book you release under an author’s name will help sell other books by that author.

So make sure you treat your authors well so they’ll stick with you. And always keep an eye out for emerging self-published writers who might be a great fit for your publishing company. 

Also, regularly review your backlist to see if you need to make any changes to keep up with market trends, whether that means re-covering a book or creating a new ad campaign for an older novel that happens to be the exact thing readers are currently looking for.

Exploring International Markets

There’s a big world out there. If you’re only selling books in your country and language, you could be missing out on a lot of potential buyers.

Just make sure you do your research before you take on the expense of having a book translated. You never want to assume that a book will be a hit in another country just because it did well in your own.

But if you’ve got good reason to believe a book will succeed in a particular foreign market, the cost of translation is fairly small when you consider the possibility of reaching a nation’s worth of new readers. That’s assuming you have the proper rights. On that note…

Subsidiary Rights and Licensing

Subsidiary rights are the rights to generate revenue from a creative work through processes beyond publishing print books and ebooks . For example, you might want to create audiobooks , graphic novels, translations, or merchandise from one of your bestselling books or series . 

These can all be great ways to get even more money out of your books for a comparatively lower investment. Be aware, however, that if you’re not the author, you can only do this if your contract grants you those rights.

Finding Support for the Journey

As I mentioned before, this guide is simply an overview of how to start a publishing company. By now, it’s probably clear to you that there’s plenty more to learn about each topic we’ve touched on.

That’s why it’s so important to keep a supportive community close as you set up and run your own publishing company. 

Connect with authors and publishers who understand how challenging and fulfilling this process can be. Join communities where you can ask for advice from people who’ve been there. Find ways to stay on top of trends and strategies in the publishing world.

Dabble can help with a bunch of those things. Join the Story Craft Café to connect with authors who are on similar journeys… or may be looking to collaborate with a small publishing company like yours. 

Hang out in DabbleU where you can find tons of advice on both the craft and business of writing and publishing. 

Subscribe to Dabble’s non-spammy newsletter and get new articles and insights delivered right to your inbox once a week.

As challenging as this journey can be, you’re never in it alone. So go ahead. Be bold. 

Create the publishing business you’ve been dreaming of.

Abi Wurdeman is the author of Cross-Section of a Human Heart: A Memoir of Early Adulthood, as well as the novella, Holiday Gifts for Insufferable People. She also writes for film and television with her brother and writing partner, Phil Wurdeman. On occasion, Abi pretends to be a poet. One of her poems is (legally) stamped into a sidewalk in Santa Clarita, California. When she’s not writing, Abi is most likely hiking, reading, or texting her mother pictures of her houseplants to ask why they look like that.

SHARE THIS:

TAKE A BREAK FROM WRITING...

Read. learn. create..

Romance tropes are the heartbeat of what makes romance novels feel like cozy sweaters you want to snuggle into. Learn how to weave in these tropes to enhance your romance story!

Whether writing is your hobby or career, you'll need to deal with the financial side of authorship sooner or later. It's not as fun as coming up with love triangles or magical worlds, but this Deep Dive tells you all you need to know to get a handle on your author finances.

Themes add an important element to our stories, giving them meaning and adding extra depth. We'll cover some common book themes and how to write stories with them in mind.

• Good Writing Habits
• Inspiration
• Writing Groups, Tools, & Software
• Writing Tips
• Book Design & Formatting
• Book Distribution
• Printed Books 101
• Publishing Industry News
• Self-Publishing
• Book Launch
• Book Promotion & Publicity
• Online Book Marketing
• BookBaby.com
• Publish My Book
• Free Catalog

Developing A Business Plan As A Self-Published Author

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.

[hana-code-insert name=’The End Guide’ /]

[…] Read the full article here: Developing A Business Plan As A Self-Published Author […]

[…] We recommend checking out this article: https://blog.bookbaby.com/2015/12/developing-a-business-plan-as-a-self-published-author/ […]

LEAVE A REPLY Cancel reply

Save my name, email, and website in this browser for the next time I comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Recent Articles

17 Exciting Fantasy Novel Ideas for Authors

Who Says Rhyme Doesn’t Pay?

How to End a Nonfiction Book in 3 Ways

The Art of Custom Book Sleeves: Protecting and Enhancing Your Book’s...

© BookBaby Blog. All Rights Reserved.

How to Create a Business Plan for Your Indie Author Business

• January 13, 2020

The beginning of the year is a perfect time to set goals and plan actions, especially if you're an author. While most businesses write a business plan, it's not always a consideration writers make. Tetiana Bek, from ALLi partner member  MiblArt  is here to explain how to create one and as well as the goals in it.

What You Need to Know Before Creating a Business Plan

Indicate a Mission Statement for Your Business

You should try to consider every book as a product with its philosophy and goals. Initially, a mission statement is your vision of the final version of the book. 

Here is how you can create an effective mission statement:

• Establish your identity and state, who you are as a writer:

I'm a crafter of the new fantasy world with paranormal events occurring in the modern metropolis. 

• Try to point out the characteristics of readers interested in your writing: 

My readers are keen on diving into the unreal world and experience adventures, love, and loss with the characters of the novels.  

• Celebrate your originality and tell about your uniqueness:

I long for presenting readers exciting worlds created by my imagination and crafted with words. 

Try to be short and simple yet remain creative.

Analyze the parts of your mission statement and write down actions to complete each of them in order. Let’s create a roadmap for your writing career with the SMART goals technique.

How to create smart goals for your writing career.

SMART is an acronym, which stands for Specific, Measurable, Achievable, Relevant, Time-Bound. 

Make it as detailed as possible to avoid ambiguity. Instead of saying, “I want to write a book,” you should set a goal, “I want to write a 300-word mystery with a female protagonist.” 

The five W-questions technique endows your purpose with clarity and conciseness.   

• Who : Who is involved in this goal?
• What : What do I want to accomplish?
• Where : Where is this goal to be achieved?
• When : When do I want to achieve this goal?
• Why : Why do I want to achieve this goal?

Also, you may add the sixth question to be even more specific:

• How : How do I want to achieve this goal? 

Add numbers to track your results and know how close the finish is. Moreover, it’s good to divide the whole process into short sections and decide on the measurements. 

• How often? 

Reassure yourself that your goal is attainable. Plenty of people are trapped by their desire to reach impossible targets. 

To make sure that your goals are both achievable and challenging, ask yourself these questions: 

• How realistic is this goal?
• What should I do to accomplish it?

Take into account different factors, such as budget, competency, time, and others, that may influence your success. 

Think about the benefits you want to get accomplishing this goal. Is it worth your efforts and time spent on it? So, you should estimate how your goal is relevant to the overall business plan. 

• Is the aim worthwhile?
• Is it the right time to reach the target? 
• Does it match needs and efforts? 
• Is it applicable in the current situation?

If you've given definite yes-answers to all the questions, then go ahead accomplishing your goal.

Set a realistic deadline. If your target has no time frame, you're unlikely to achieve it. Time frames keep you motivated to complete your tasks. 

• When I want to finish the task?
• What is the deadline for each stage?

How to Use Smart Goals

As we’ve already discussed what the SMART goals are, let’s analyze it together . Imagine that you need book cover design services . Here’s how you can break the process into smart goals.

Now it’s your turn to write and track your SMART goal! 

Download MiblArt Template for SMART goals

Step by step process of business plan creation.

Now you’re all set and ready for creating a business plan. A business plan usually includes the following blocks: buyer persona portrait, competitor analysis, value proposition, revenue streams, key activities, distribution channels and partners.

Let’s review each of them in more detail. 

How to Create Your Ideal Reader Portrait

Always keep in mind your potential readers when writing a book. There is more chance that your writing will satisfy their expectations. Here is how you can analyze your target audience:

• Identify your genre to make the target audience aware of the concept of your writing. 
• Find out the demographics, reading habits, values, and challenges of the target audience. 
• Write down the reading preferences and interests of your ideal reader
• Select out your ideal and potential readers. Several persona profiles give you more opportunities for improvements in self-publishing. 

Now it’s time to analyze your competitors and find out how you can be different.

How to Conduct a Competitor Analysis

A competitor analysis helps you to know the strengths and weaknesses of other writers in your genre. 

Where to start?

• Define the top ten best-selling authors in your genre. You can find them on Amazon and other book-selling platforms. 
• Analyze their websites, social media profiles, and design of their books. 
• Pay attention to all types of content they provide (blogs, seminars, podcasts). 
• Learn how they engage with the audience. 
• Focus on their pricing, recommendations, and reviews

This information opens up opportunities for improvement and reinforces your positioning on the market. 

How to Create a Value Proposition

Value proposition is a promise you give your audience about your business. It is a statement that affirms your difference from competitors. 

If you’re an indie author, it may sound like:

“You’ll discover the world of fantasy unknown before,” or

“Follow breathtaking adventures in every book of the X series.”

Use your creativity to find the value proposition of your writing. 

How to Come up with Book Distribution Channels

There are two types of book distribution channels: ebook and print book. You may choose either one of them or both. It’s up to you. Yet, you have to understand their differences and principles of work. 

Regarding online distribution, you can work directly with:

• online retailers (Amazon KDP, Apple, Kobo, Barnes & Noble, etc.),
• ebook distribution services (Smashwords, Draft2Digital, and others). 

When you create your marketing strategy, you may include both types of book distribution or choose only one option. Test them to know what helps you enlarge sales and awareness of your writing.

How to Define Revenue Streams

Like any business, self-publishing has to bring in income. That's why you should compile the list of sources you want to distribute for money and free of charge. 

Public speaking, coaching, online courses, and corporate sponsorship are great ways of extra income. However, they require some knowledge and competency. 

Your Key Activities as an Author

It’s essential to track your progress. You should write down your plans and ideas — arrange your day, schedule your week, and organize your month. 

Check your plans and make corrections every day to make sure that you follow the desired direction. 

How to Build Partnerships in the Publishing Industry

A partnership allows an indie author to expand their audience and get new subscribers.  You can convert the list of your competitors into partners. Make sure that your audiences match, share similar interests, and possess common values. 

Here is how you can partner with other authors:

• Co-create books
• Organize different events
• Cross promote each other
• Write a guest post for their blog
• Write reviews for each other’s books 

Wrapping Up

All in all, a business plan is the key to success for an indie author. As you put everything to paper, you can control the process, improve the shortcomings, execute more tasks and reach your aims. 

As a bonus, we’ve created Business Canvas Template that will help you to create an effective business plan step-by-step. Use it to prosper in self-publishing and book marketing!

Find out more about MiblArt on their website , Facebook,  and Instagram .

OVER TO YOU

Have you written a business plan this year? What sections did you include?

If you enjoyed this post, you might like these from the ALLi archive:

https://selfpublishingadvice.org/ten-business-models-for-indie-authors/

Self-Publishing Trends for 2020 and the Next Decade with Orna Ross and Joanna Penn: Advanced Self-Publishing Podcast

Author: Tetiana Bak

MiblArt is a book cover design company for self-published authors. We believe that book cover design should target the right audience, sell your story and intrigue at the same time. Give people a reason to open your book.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Latest advice, news, ratings, tools and trends.

Happy Holidays, Indie Authors!

Inspirational Indie Author Interview: Kevin G. Chapman. Attorney-Turned-Author Finds Success with Patience, Planning, and Award-Winning Thrillers

UK Government Seeks Responses to AI Consultation; ‘Brain Rot’ is Word of the Year: Self-Publishing News with Dan Holloway

• Advice Centre
• Write For Us
• ALLi Watchdog
• Services Ratings
• Award Ratings
• Member Directory
• Publishing Guides
• Genre Guides
• Short Guides
• Campaign Guides
• Author Handbooks
• Indie Author Magazine
• Publishing Services Directory
• Workbook Planners
• Coming soon

We earn commissions if you shop through the links below.  Read more

Publishing Business

Back to All Business Ideas

How to Start a Publishing Company in 13 Steps

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on November 24, 2021

Investment range

$4,150 - $18,300

Revenue potential

$60,000 - $600,000 p.a.

Time to build

Profit potential

$9,000 - $90,000 p.a.

Industry trend

These are the critical aspects you should evaluate when launching your publishing business:

• Niche — Decide on the types of publications you will produce, such as books, magazines, e-books, or academic journals. Consider focusing on a specific genre or market niche.
• Licenses — Apply for International Standard Book Numbers (ISBNs) for your books through an agency like Bowker in the US. Ensure all published works are properly copyrighted to protect intellectual property.
• Office space — Choose a suitable location for your office, whether it’s a home office or rented commercial space. Ensure it has adequate space for meetings, planning, and administrative tasks.
• Remote work setup — If applicable, set up a system for remote work, including secure communication tools and project management software.
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or choose one of the top services available .
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
• E-book platforms — Distribute e-books through platforms like Amazon Kindle, Apple Books, and Google Play Books.
• Distribution channels — Establish relationships with distributors, bookstores, online retailers, and libraries. Consider print-on-demand services for lower upfront costs.

Interactive Checklist at your fingertips—begin your publishing business today!

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a publishing business has pros and cons that you should consider carefully before determining if it’s right for you.

• Rewarding – Boost writers and provide great books to readers
• Creative Control – You choose which writers and works to publish
• Profit Opportunity – Industry has sizable margins
• Competition – Publishing is highly competitive, hard to stand out
• Finding New Voices – Many author submissions to go through to find a gem

Publishing industry trends

Print publishing has declined somewhat in recent years, but the educational and scholarly segment of the market is growing. 

Industry size and growth

• Industry size and past growth – Market analyst IBISWorld values the US publishing market at $33 billion(( https://www.ibisworld.com/industry-statistics/market-size/book-publishing-united-states/ )) and global publishing at more than $112 billion.(( https://www.ibisworld.com/global/market-size/global-book-publishing/#:~:text=The%20market%20size%2C%20measured%20by,is%20%24109.3bn%20in%202021. ))
• Growth forecast – Digital publishing, a major market segment, is predicted to grow at least 6% annually and reach $38 billion in revenue by 2028.(( https://www.researchandmarkets.com/reports/5446278/global-digital-publishing-market-forecast-to-2028 )) 
• Number of businesses – There are nearly 2,000 book publishing companies in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/book-publishing-united-states/ )) 
• Number of people employed – The industry employs almost 70,000 people.(( https://www.ibisworld.com/industry-statistics/employment/book-publishing-united-states/ ))

Trends and challenges

Trends in the publishing industry include:

• Faster internet speed and improved accessibility are driving demand for ebooks and audiobooks
• Children’s books are the most popular genre in publishing as a whole

Challenges in the publishing industry include:

• Online piracy is denting sales as ebooks are illegally shared
• High level of competition

What kind of people work in publishing?

• Gender – 56% of publishers in the US are male, while 44% are female.(( https://www.zippia.com/publisher-jobs/demographics/#gender-statistics ))
• Average level of education – 72% of publishers hold a bachelor’s degree.(( https://www.zippia.com/publisher-jobs/demographics/#degree-level-types ))
• Average age – The average age of a publisher is 43 years old.(( https://www.zippia.com/publisher-jobs/demographics/#age-statistics ))

How much does it cost to start a publishing business?

Startup costs for a publishing company range from $4,000 to $20,000 or more. The high-end range includes the first printing run of your first book. By focusing on digital publishing you can keep costs toward the lower end of the range.

How much can you earn from a publishing business?

The average profit margin in publishing is about 15% which reflects a mix of print and digital publishing.

As a solopreneur, you could work from home and sell 5,000 $12 books in a year, bringing in $60,000 in revenue and $9,000 in profit, assuming that 15% margin. As your brand gains recognition, sales might climb to 50,000 books a year, giving you an annual revenue of $600,000 and a tidy profit of about $90,000.

What barriers to entry are there?

There are a few barriers to entry for a publishing company. Your biggest challenges will be:

• Finding authors – Agents can help, but this requires a lot of reading
• Marketing – Building a brand means spending on marketing

Step 2: Hone Your Idea

Now that you know what’s involved in starting a publishing business, it’s a good idea to hone your idea in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Look at what types of books are trending with readers by reviewing the bestseller lists. Are thrillers hot? Or maybe it’s romances and memoirs. Your challenge will then be to find strong submissions from authors in trending genres. As a new publisher, you’ll be looking for new authors who are just getting started.

What? Define your publishing services

You’ll have to determine two things: how to best help your authors and what books to offer customers. For authors, you may want to focus on editing, design, and marketing to stand out over another publisher.

Next, consider whether you’ll offer print books or digital, or a mix of both.

How much should you charge for books?

The average cost of a printed book is $14 to $18, while ebooks generally run $3 to $10. Generally, prices depend on the popularity of the author, so your new author’s books will probably be on the lower end of the range. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Determine your most likely audience. If you’re publishing in the young adult market with books that target young women, for example, you can probably find them on social media sites like Instagram and TikTok.

Where? Choose your business premises

In the early stages, you may want to operate your business from home to keep expenses low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Publishing Company Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “publishing” or “books”, boosts SEO
• Choose a name that allows for expansion: “Infinite Ink Publishing Group” over “Business Brilliance Publishing Group” or “Travel Tales Publishers”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool below. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Publishing Business Plan

Here are the key components of a business plan:

• Executive Summary: Provide an overview of your publishing business, highlighting its purpose, target market, and how it will stand out in the publishing industry.
• Business Overview: Explain the focus of your publishing company, including genres or types of content you plan to publish.
• Product and Services: Specify the range of publishing services offered, such as editing, design, distribution, and marketing for authors’ works.
• Market Analysis: Evaluate the demand for publishing services and identify your primary customer segments, such as authors, educational institutions, or businesses.
• Competitive Analysis: Analyze other publishers in your niche and define your competitive advantages, like unique distribution channels or specialized services.
• Sales and Marketing: Describe your strategy to attract authors and sell books, whether through online platforms, book fairs, or direct marketing.
• Management Team: Present the qualifications and backgrounds of the management team that will drive the company’s success.
• Operations Plan: Outline the processes from manuscript acquisition to book production and distribution.
• Financial Plan: Summarize the financial aspects, including the budget, pricing model, and revenue projections.
• Appendix: Include additional documentation like detailed market studies, author agreements, or sample marketing materials that support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to publishing. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your publishing business will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital : Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a publishing business. 

Step 8: Apply for Publishing Business Licenses and Permits

Starting a publishing business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your publishing business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You can use industry-specific software for publishers like Xpublisher or Quark to help you automate your design and publishing processes.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero .
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Leverage Social Media Platforms: Engage with your audience on platforms like Instagram, Twitter, and Facebook by sharing visually appealing content, behind-the-scenes glimpses, and interactive posts that spark discussions around literature.
• Website & SEO : Build a professional website that showcases your published books and author services, optimized for searches related to new book releases, author submissions, and publishing services.
• Collaborate with Influencers: Partner with book influencers and bloggers to review and promote your publications, tapping into their established audiences to increase visibility and credibility.
• Host Virtual Book Launches: Organize online events to launch new books, inviting authors, readers, and industry influencers to participate, creating buzz and fostering a sense of community around your brand.
• Utilize Email Marketing: Build and nurture a mailing list by offering exclusive content, discounts, and sneak peeks to subscribers, maintaining a direct line of communication with your audience.
• Explore Podcast Sponsorships: Identify popular literary podcasts and explore sponsorship opportunities, reaching a targeted audience of book enthusiasts who are likely to be interested in your publications.
• Participate in Book Fairs and Festivals: Attend and showcase your books at local and international book fairs, connecting directly with readers and establishing a physical presence in the literary community.
• Run Targeted Online Advertising Campaigns: Utilize platforms like Google Ads and social media advertising to target specific demographics interested in your book genres, maximizing your reach and return on investment.
• Implement Referral Programs: Encourage your existing readers to refer friends by offering incentives such as discounts or exclusive content, turning satisfied customers into advocates for your brand.
• Create Engaging Book Trailers: Produce visually compelling and shareable book trailers to captivate potential readers on platforms like YouTube and social media, providing a dynamic preview of your publications.
• Establish Book Clubs: Foster book club partnerships or create your own, providing a platform for readers to discuss and promote your books while building a dedicated community around your brand.

Focus on USPs

Unique selling propositions, or USPs, are the unique characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they’re able to quickly grasp how your publishing business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your publishing business could be:

• The premier publisher for new authors
• The best romances, thrillers, and mystery novels
• Top non-fiction publisher

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a publishing company, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in publishing for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in publishing. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you’ll likely need workers to fill various roles. Potential positions for a publishing business would include:

• Copy Editor – Proofreading, fact-checking, polishing manuscripts
• Designer – Cover and illustration design
• Editor – Review and shape manuscripts for publication
• Production Manager – Oversees book production process
• Marketing Lead – SEO optimization, social media strategy

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn or Facebook. You can also use free classified sites like Jobs and AngelList. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Publishing Business – Start Making Money!

Giving new authors real opportunity and seeing their work embraced by the reading public can be intensely rewarding. Yet publishing can also be a very profitable line of work. 

If you find just a few authors who become very successful, the sky is the limit. You could also create a long-term affiliate relationship with the world’s leading bookseller — just check out the Amazon Associates program . It’s easy and free.

You’re now ready to start publishing and making good money from good writing. You can start small and grow your company into something huge – maybe the next Simon & Schuster!

Frequently Asked Topics

Is a publishing business profitable.

Yes, you can make a healthy profit from a publishing business if you’re successful. It will take some time and the right authors to get to a good profit level, but it’s an almost $110 billion industry globally so if you can capture even a small part of that, you’ll do just fine.

Are any special licenses needed for a publishing business?

There are no special licenses required for a publishing company on a federal level. You may need business licenses or permits through your state or local governments, so check with those offices for requirements.

How long does it take to start a publishing business?

It will take some time to find authors and get your first books to market. If you market yourself well, you could get started in three to six months.

If I start a publishing business, how do I find good authors?

You can market your new company with your website and through social media. There are thousands of aspiring authors out there who would be thrilled to find a new publisher interested in their work. You could also partner with a literary agency. They get thousands of book submissions and could send some your way.

How do publishing companies make money?

Publishing companies generate revenue through book sales, rights licensing, subsidiary rights, distribution services, and ancillary products. They earn money by selling books in various formats and languages, as well as licensing rights for adaptations, translations, and merchandising. 

Is publishing a hard career?

Whether publishing is a hard career depends on individual factors, but it can be competitive and demanding. It requires strong communication, organizational skills, and the ability to adapt to industry changes. Challenges include finding new authors, meeting deadlines, and navigating market trends.

Which book genre sells the most?

Popular genres include mystery/thriller, romance, science fiction/fantasy, young adult, and non-fiction. However, book sales can be influenced by factors such as popular authors, adaptations, marketing efforts, and cultural trends.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Subscribe to Our Newsletter

Featured resources.

17 Business Ideas that Help the Community

Esther Strauss

Published on July 29, 2022

Just about everybody wants to live in a warm, welcoming close-knit community, and you can help build one by starting a business that helps peopleliv ...

Top 9 Printing Business Ideas for Entrepreneurs

Carolyn Young

Published on July 21, 2022

The US printing industry is recovering from the pandemic and expected to gain strength as the economy improves. Although printing will continue tofa ...

No thanks, I don't want to stay up to date on industry trends and news.