Business Planning: Let's Talk About Money

Hello, Lovelies! I am finally back to finish up the Business Planning for Authors series. Sorry for the delay, y'all. All the things. All. The. Things.

Anyway, I'm back and ready to talk about the thing nobody ever wants to talk about, especially when it comes to publishing: Money. All over the interwebs you will see the advice, Never Pay to Be Published. With traditional publishing, this is absolutely true; publishers pay you, not the other way. But we indies live in a different world.

(Disclaimer: Yes, I know that you can publish your book without spending a dime. I get it. But I also know that most people don't have all the skillsets needed to write, edit, design, format, and publish a book. I'm assuming you are one of us normal people, in which case some money will likely be spent.)

So where do you start with this whole budgeting your book thing? I'm sure there are plenty of ways you can go about this, but here is how I do it:

1. Write down your anticipated expenses. What will you be spending on this book? Possible money-eaters include editing (possibly several rounds - developmental editing, copy editing, proofreading), cover design (don't forget that you'll need an extended design for a paperback if you are releasing one), formatting (epub, mobi, and print book layout), and marketing/PR monies. Also: ISBNs and set-up fees for your printer, if they have any. Do your research and find out what these things will cost you. You will find huge variety in the costs for covers and editors, so don't just base your numbers on what your friend spent, unless you will be using the same vendors. (Check out the Vendors We Trust.)
2. Decide what your price point is going to be. Will you be selling your book for $2.99? $3.99? Now's the time  for some market analysis. What price seems to be the most effective for your genre? Readers have preconceived notions when it comes to prices. Too high and they will think it's not worth it. Too low and, no matter how great the book is, there will be some readers who think it is not good enough for a higher price and will skip it. 
3. Create a sales projection. This part is the hardest, as there is no way to know exactly how a book will do. Amazing books often have very few sales, and many books that skyrocket to success were ones for which the author had low expectations. If we knew exactly what makes a book successful, we would all be bestsellers (and then by default nobody would be a bestseller). Not a lot of authors share their sales figures online, but with some digging, you will likely be able to find someone to base your projection on. Look for an author who writes in your genre and who has a similar release history. (It won't work to compare your first-book projection to the sales on Author's ninth title.) I do my sales projections month-by-month.

Now that you have your numbers, add them all up. This will give you an idea of what you can expect to pay to make your book the best it can be. Once you know what your expenses are, go ahead and add some onto that number. Even the best budgeter can find herself overspending. :)

There. Really, it's quite simple. Even so, this will be the hardest part of the business plan for most people, as it is the part with the least concrete evidence on which to base the numbers. But I promise you, you will never regret planning it out in advance.

Business Planning: Your Production Schedule

Part of the joy of self-publishing is the ability to set our own schedules. We can determine how many books we release in a year, how far apart they are to be spaced, and when they will hit the virtual shelves. We are not limited by publisher scheduling that only allows one title a year, nor are we contractually obligated to deliver manuscripts by a certain time. 

Have you ever heard that old saying, "Given enough rope to hang yourself with?" The freedom that comes with being completely in charge of our own schedules can also become a hindrance to us. Without a set schedule, it's easy to slack off . . . or as may be the case for many writers, it's easy to set publication dates that we can't reach without skimping on editorial time. 

A Production Schedule should be a major part of every author's business plan. By taking the time to plan out when you are going to release titles and the timing for the steps along the way, you are setting yourself up for success. Not only does a production schedule give you something to go off of for your own benefit (say, in helping you plan your finances around the release), it also allows you to pre-schedule with editors and cover designers. If you have a date scheduled with your editor from the start, you won't have the last-minute scramble to find an open editor when you finish your draft. You also have added incentive to get your draft done on time - there's nothing like missing a deadline when someone's waiting to get your manuscript from you. 

So how do you go about setting a production schedule? The answer to that is the ever-infuriating it depends. Ultimately, you need to decide what works best for you and your business, but I do have a few suggestions:

• Look at your past work. How long did it take you to draft the book? And how long did you then spend in edits? You can't base your production schedule off anyone's work but your own. Maybe you can write and edit fast enough to release several books a year; maybe you need much longer and will only be releasing one title a year. (And don't let anyone tell you that you have to release a ton of titles to make it. More titles may help, but releasing early just to get them out there will only hurt.) Whatever your schedule looks like, make sure it is something that works well for you and your working pace. This isn't a race or competition, y'all. 
• Make sure you plan in time for edits. You know how long it takes you to write a draft, and you know how long it takes you to get through edits. When you plan your schedule, make sure you also plan in enough time for your editor to work on your project. I work as an editor, and I can tell you: it is possible to turn edits around for an author really quickly, but work is much more thorough and less likely to have mistakes missed with enough time allowed. (Also, most editors will charge extra for rush edits, so do your bank account a favor and work time into the schedule.) All editors are different, so contact yours to see how much time she needs. 
• Plan enough time for publicity and marketing. Hype can't build overnight. Give yourself enough time to get word out and give your baby the best chance you can. 
• Plan for something to go wrong. My time as the editorial coordinator for Month9Books has taught me one very important thing: something is bound to come up on every title. Make sure you are ready for that eventuality. Personal example: I had plans to get the most recent draft of my book done and to an editor at the end of March. Then all the things happened. A bunch of Month9 work came up; I had a few freelance projects come my way; the farm, in a truly farm-like way, demanded so much time to fix fences (always the fences); and then I got sick. So, yeah, draft didn't get done. And while it was a hassle to have to reschedule with my editor, I had the time built into my schedule, so it won't change my release date at all. If I hadn't scheduled buffer time in, there's a very real chance I would have to push that date back. 

I can't tell you what your production schedule should look like; I don't know your work habits, and I don't know how many rounds of edits your title will need. My schedule is probably a little more detailed than many; chalk that up to scheduling for a publisher. :) Here's what my schedule for Incubus, my December release, looks like:

• Rewrite delivered by 31.July.2013
• Full beta read by 7.August.2013 (I have awesome fast readers.)
• First revisions by 14.August.2013
• Send to publicist and editor by 15.August.2013
• Content edit returned by 31.August.2013
• Revisions and edits by 15.September.2013
• Copy edits returned by 30.September.2013
• Revisions by 14.October.2013
• Pre-proofing by 21.October.2013
• Formatting by 31.October.2013
• Second proof by 7.November.2013
• Send files to Lightning Source by 10.November.2013
• Final proofing (both eBook and print) by 24.November.2013
• **Cover needed by 3.September.2013**
• Release date: 3.December.2013

Yes, I know there are three proofreading rounds in there. I am neurotic like that. I read my books forward, backward, and totally randomly, trying my very best to squash out any proofing mistakes. Your schedule may not be this detailed, and that's okay. The important thing is that you have one. I write a schedule like this for each book I plan to release, plus a master schedule of my releases, so I can look at the big picture and know what to expect for my business.    

There you go - the nitty gritty of scheduling your titles. Take some time to figure out a schedule that works for you. Then get back to writing - that's the fun part anyway!

Your turn: do you schedule out your books, or do you let things run as they may? Leave it in the comments. 

(I'll be back next week to talk about big, bad finances!)

 

 

Business Plans for Authors

I think it's safe to say that many of you lovely readers are writers. We love words and creating and art. We spend hours, days, weeks, months, and (for some of us) years crafting our perfect book. Sweat and tears (but hopefully not blood) are poured into our work, and we let that creative side roll. It's fun and beautiful and wonderful. 

But, unfortunately, that's not all there is to being a writer - at least, that's not all there is to being a published author. Whether you publish with a major Big Six (Five? Four? I can't keep up with the mergers anymore) House, a small press, an eBook exclusive house, or chose to go it alone-ish and self-publish, you are now a businessperson. Yep, that analytical, chart- and list-loving side of your brain finally gets to come out and play. (And if you are one who thinks that side of your brain lay down and died many moons ago, prepare to resuscitate it, because you'll need it now. But don't worry, it won't be too hard.) I'm going to be focusing on indie authors, because - hello! - this is an indie author blog, but I think a lot of this will apply to authors with big houses behind them as well, just maybe with a little tweaking.

Why does an author need a business plan? 

 

Good question; I'm glad you asked. As nice as it would be to be able to just sit at home and churn out words, the reality of indie publishing is that you are no longer just a writer; you are now a writer and a publisher, so all the major business decisions fall on you. I wrote a business plan for my massage studio*; I wrote a business plan for my alpaca farm; it only makes sense that I should write one for my writing and publishing. 

After all, this is a business. (Have I drilled that in enough yet?)

So what goes into a business plan? 

 

That really depends on you and how thorough you want to be. My business plan for Metamorphosis Books is twenty-one pages long. Plus I do an additional plan for each individual title. But I'm neurotically organized. It's likely you won't have quite as much in yours as I do in mine. (But if you want an idea of how detailed mine is, check out this blog series by Denise Grover Swank. She laid it out so well, and all I'd be doing is basically regurgitating a lot of stuff she said, and what's the fun in that?) At the very least, I think you need to focus on: 

1. A vision for your business. (below)
2.  A production schedule. When will your titles be released? When do you have to reach writing and editing milestones in order to make that happen? When do you need your cover by, and when will you start with promotions and publicity? (I will cover this next week.)
3. A financial plan. How much is this going to cost you? What will you charge for your books? Where do your profits go? (I will be covering this in two weeks.)

There are a ton of other things you could add, but at the very least I suggest these three core items.

Let's talk about vision.

 

What are you hoping to accomplish? Are you just putting out one book, or are you setting yourself up for the future?  This is the part of your business plan where it's most important to be totally honest with yourself. Where do you really see yourself going with this adventure? It's okay to shoot high here and to plan for big things to happen. We're all dreamers, and while the nitty-gritty of business planning will ground us a bit in later weeks, we can lay out all our grand ideas here.

But...

Please take the time to reflect and be honest with yourself about what YOU really want. Don't base your plan on anyone but yourself. It's easy to see what everyone else has and to try to go for that as well, but is it what you truly want? Example:

A bit more than a year ago, I was writing up my business plan for our alpaca farm. During the research phase, a lot of really cool things popped, and before long I was incorporating those numbers and ideas into my plan. The alpaca business was so cool! And, man, these people were making BANK.

But they were also dumping a ton of money into their business, giving ultrasounds to their pregnant dams, paying multi-thousand dollar stud fees just so they could get the best names in their pedigrees, traveling around the country ALL THE TIME to go to shows. They were performing monthly weigh-ins on their animals and sending fiber samples off to labs to get histogram readings. (It's okay if you don't know what that means.)

It was easy to get caught up in the excitement and pull of those big numbers, but when I made myself be completely honest about what I wanted, that lifestyle was not it. My husband grew up on a farm and has a livestock background; alpacas are livestock, but these farmers were not treating them this way. I didn't need - or want - the fancy gadgetry and hand-breeding; my animals know how to do the dirty just fine on their own, and their offspring are just as great. I don't need to win awards at shows and to have a piece of paper saying how great my animals' fiber is; the spinners and knitters I sell to don't care what the judges say - they just know good fiber.

Sorry to go all farm-talk on y'all. The point is: it was easy to see what others have and put those ideas into my plan. But when I really thought about it, I realized those weren't the things I wanted. Sure, they were great for those other farms, but just not for me. So now I run a very laid-back alpaca farm, very different from all those I researched before business planning, and I couldn't be happier with it. (Well, I could be happier if that one devil alpaca would stop eating our dog food, but that's beside the point.)

So take some time and think about what you really want out of your writing and publishing. It's fine to look at what others are doing and have accomplished**, but when it comes time to actually write your own plan, first try to put all of those other authors out of your mind so you can meditate on you. Once you figure yourself out, you're ready to write out the vision for your business.

Okay, I think I've gone on about long enough for one blog post. I'll be back next week to talk about production schedules.

Your homework for this week: if you've not yet done this, take some time to sit down and envision what you want from your writing and publishing. Where do you want your plan to take you? (And if you've already done this, take some time to read over what you have and re-evaluate. Are you still in line with what you originally planned? Business plans are fluid. Don't be afraid to change course.)

*This was before I destroyed my right shoulder and effectively squashed a steady massage career.

**It's actually really great and beneficial to research what others have done, and that research will come in handy for later parts of your plan. Just try to ignore the others for this part.