Disclaimer: This article provides an overview of the basic principles of business practices in the United States. The material contained in this article is NOT legal advice, and does not create an attorney-client or other confidential relationship between the User and the Author Learning Center. Users should contact an attorney in their jurisdiction or financial advisor for advice regarding their particular situation.
Congratulations! You’ve written a manuscript, polished your work and become a published author. Well done. But you haven’t just gone from writer to published author. You’ve just been appointed the CEO of your own business. Being a successful author requires more than writing a great book. Your amazing product needs to be shepherded. You’re not just an author - you’re the steward of your own business. As the founder and CEO of your business there’s a lot to know and learn. To help get you underway, let’s take inventory of the various aspects of running an author business. There are four key areas with which you’ll want to become familiar: legal, finance, marketing/PR, and sales/distribution.
Legal Considerations
As CEO of your author business, one of the key areas you’ll want to consider is legalities, beginning with content ownership and rights. Regardless of whether you choose to self-publish or work with a traditional publisher, you want to make certain that your content is original and that the words are yours. If you incorporate illustrations, photographs, quotes or excerpts appropriate references and credit needs to be given to the author or owner. To that end, appropriate permissions and releases also need to be obtained in order to use the work of others. These can typically be found online, though both traditional and self-publishers will often make them available.
If you work with a traditional publisher, you may want to consider what rights you’d prefer to retain and what rights you’re willing assign to them. For instance, you may wish to reserve development rights (i.e. film/streaming service development) or publication rights with regards to format or geographic distribution (i.e. eBook rights or European distribution).
You’ll also want to give careful consideration to your contract. As you may have guessed, different types of contracts are associated with different publishing methods. Vendor contracts are one area where you may want to pay particular attention. To make sure you get what you want and require, be careful to define your expectations. If you employ someone to assist with your cover design or editorial, confirm what they’re going to deliver, at what cost and by what deadline. If you work with self-publishing companies, read through those agreements. They often identify who owns what rights, how to get your rights back, and how royalties are paid.
Finance
When it comes to finance one of the first things to consider is whether you want to set your author business up as an LLC or as a DBA. As an individual or DBA (Doing Business As), it is likely your income and expenses can be accounted to you personally. Conversely, an LLC is run more like a separate entity. Therefore, it may limit liability for the individual. Also, expenses and/or income can be accounted for separately since an LLC maintains its own financial statement. Both business structures have their respective advantages and disadvantages and a lawyer or accountant may be able to aid you in choosing an option that best fits your needs.
As the CEO of your author business, you’ll also want to be cognizant of your tax situation. This includes being familiar with sales tax protocols, royalty deductions/payment calculations, and publisher advances. A tax accountant may be able to give you additional information regarding specific deductions and calculations.
Marketing & Public Relations
Many authors are familiar with this particular aspect of business ownership. As an author, you know marketing is a big part of what you need to do to be successful. Yet, not all authors realize how important it is to have a plan in order to streamline effectiveness. One of the most successful methods of book marketing is the POEM method. No, we’re not suggesting you expand your prose. POEM is an acronym that stands for Publicity, Online, Events and Multimedia. Every integrated marketing campaign will have these elements and if you learn to use them in tandem you stand to create the greatest impact.
Another marketing and publicity standpoint that requires your attention is your elevator pitch. Your elevator pitch should be a 1-2-minute introduction to your book that motivates your audience to learn more about your work. This becomes very important as opportunities crop up either from a PR standpoint, for a book signing, or even just meeting people out in public. Ideally, you want to be fluent in your elevator pitch so that you can explain very quickly what your book is about when the opportunity presents itself. Never underestimate the power of the word of mouth.
Sales & Distribution
Sales and distribution is always an area of significant interest since it deals with revenue. A key concept to understand is that format directly correlates with sales opportunity. Once upon a time, books were a planned purchase. Now, thanks in part to technology, they are often purchased spontaneously. Thus, it is critical to make your book available in any format, anywhere, anytime, in order to maximize sales prospects. After all, why not take advantage of every chance to make a sale?
Importantly, many authors have opportunities for other sources of revenue once they’ve completed their book. This is where product development can come into play. You can do book signings at libraries in addition to stores. You can think about writing a series. You can create an audio book, participate in speaking engagements, or even pursue merchandising opportunities. Your book isn’t the only revenue stream you may have at your disposal. As the director of your business you have the liberty to explore a variety of profitable possibilities.
So, there you have it: a synopsis of your responsibilities as a newly appointed CEO. As you embark on your journey as a captain of industry, remember we’re here for you - your curated, battle-tested all-in-one resource. So, man the helm with confidence, as the master of your own destiny. You’re not just an author-you’re the sovereign leader of your business.
Just the pep talk I need after the unsuccessful publishing of my first novel. Thanks for the tip!
Just the after-burner I needed as a published author. It is with the confidence as a creative writer and a published one at that that we can march on as owner/creator/writer combined, into the market business.