Alright, so yesterday we looked at just the expenses part of the business plan because when you are making something like that, that is the one section you want to start with. Now, I forgot to mention this but you should also add your projected revenue. This is a TOTAL GUESSTIMATE. Especially if you don’t have an established fan-base. But for books I listed possible revenue coming from: (a) online sales, (b) e-books, (c) face-to-face selling, and (d) bookstores… Pretty basic. For most self-publishers the first 3 will be your main selling areas, and as far as calculating this you need to do some research. (1) Find out who your distributor is, I recommend Lightning Source for online, and BookBaby for e-books. (2) Research prices and start drawing up some hypothetical scenarios for where your book will fall (unless you have a “for sure” word count and page count. And then just take the profit margin and multiply it by # of books sold and then don’t forget to add in royalties to bookstores or vendors or whoever else there may be.
Now, the first four things on the business plan are (1) Description of company, (2) ownership and location information, (3) products, and (4) pricing strategy. These are definitely the easiest and for the most part self-explanatory. But, let’s discuss the basic jist of each one briefly, before going into what’s going to set your business plan apart.
ITEM #1 = Description of Company
- Alright, here you just put what your company plans on doing. For example, “The purpose of Writer’s Block Press is to spearhead publishing and merchandising for the written creations of Michael E. Thies.” Here is where you will also want to list what type of salary you expect, and how you plan to utilize left over money.
ITEM #2 = Ownership and Location of Company
- Who owns it. What type of company is it (i.e. sole proprietorship, LLC, partnership, etc.). Do you have employees? How many?
- Where is it located. If you are working from your house you could say something like, “Writer’s Block Press will be run and operated in a designated office on the residential premises of your name here.“
- Who to get in touch with if approached for movie deals or sponsorship opportunities
ITEM #3 = Products
- What type of products do you offer? For a publishing company it is most likely going to be books, and that’s pretty much about it. Make sure you tell what format they are in (print and e-book, maybe audiobook?)
ITEM #4 = Pricing Strategy
- Unless you have the capabilities and know-how to run a POD Press, or an Offset Press, I would just say something like “Writer’s Block Press, until deemed financially necessary, will outsource production of books to POD publishers such as LightningSource or CreateSpace. As such, Writer’s Block Press is subject to their pricing for works published.”
NOW THE GOOOOOOOOD STUFF 🙂 —> Here we will be discussion a few things: (6) Production schedule, (7) Targeted Audience, (8) marketing and promotion plan, (9) web plan, (10) long-term goals, (11) summary…. (If you noticed I skipped item 5, that is because that are your finances which I already discussed in the previous post).
ITEM #6 = Production Schedule/Writing Plan
- It’s always nice to have goals down in print. I think it helps you achieve them. So with this section you are going to list (I would say for the next 2 years minimum) your product plans.
- So for new books make sure you include, dates to get drafts done by, dates to get edits done by, proofreading, to have galley copies ready, to have release dates. By having these items, you will really set yourself up for success. So, for example, the first book in my series, Guardian of the Core, titled “Eska’s Trials” is coming out this December. For the whole year of 2014 I have plans of finishing the second book, and of dates I need to get each draft done by, so I can release the second book of the series, come January of 2015.
- This is the type of planning that financial people want to see. It will exude a sense of professionalism with them and that you are taking into account the longevity of the company. And of your career of course!!!
ITEM #7 = Target Audience
- Pretty self-explanatory. Who are you marketing towards? For me, my book is New-Adult science-fiction/fantasy so a bunch of my readers will be college-aged males. Writing a romance? Well, it’s probably females. Writing a How-To Book on engineering? Well, then middle-aged men. Of course, always try to be as specific as possible with this.
- Include answers to these questions in this section: What is the best way to reach readers? What are the number of books planned in the series? Is it a standalone novel? What is the novel about? What is the genre?
ITEM #8 = Marketing Plan
- Sorry to disappoint everyone, but I’m an Advertising Major, so this is right up my alley. With that being said, I want to do it justice and not just give a brief overview. Check back later as this will get it’s own blog post, just like finances did. This is almost an entirely separate document than your business plan since it can be very long depending on how thorough you are and the ideas you have.
ITEM #9 = Web Plan
- What are your url’s going to be? If you know, RESERVE THEM NOW! I am pissed because someone already has “writersblockpress.com” reserved so I had to go with the next best thing and choose “.net” but then I also purchased “www.guardianofthecore.com” and “www.michaelethies.com” and I am going to include url forwarding for all of them to my author page until deemed financially appropriate to get separate websites for the rest of them.
- Also, here is where you want to list your presence and visibility on social media. Do you have a blog? Of course you do, you’re following mine! 😉 But, besides that, do you have a Facebook Page set up, Twitter Account, LinkedIn, Tumblr, Pinterest (I admit to not using the last two I listed, but if you have them, list them). Perhaps you have a Youtube Channel that can correlate with your company’s vision.
- This is an important part because investors want to see your marketability and nowadays all of that marketing stuff has to do with an online presence. You need to have one!
ITEM #10 = Long-Term Goals
- Include 3-Year and 5-Year goals in here. Again, these are just “goals” you are not bound to these. For mine, I included having another book out in 3-years, and then one more book and even other authors by 5-years from now. Also, I put in here that I will have personalized websites for the links I mentioned above within this time frame.
- This is an important section because, as I said before, investors want to see the longevity of your company planned out. If you have goals for 3 and 5 years down the road, then they will start to trust you more as a person who wants to make this business succeed and will do everything in their power to try and make that happen.
ITEM #11 = Executive Summary
- Summarize your entire document. Here is a sample of what I put:
- “Writer’s Block Press will see continued growth through 2014 and 2015, and subsequent years after that. By February of 2015, Writer’s Block Press will have two titles published that will be for sale via print and e-book. Each book published by Writer’s Block Press will be of high quality, going through the necessary revisions and steps before it is released. Branding author and owner, Michael E. Thies, will never stop, nor will marketing his series, Guardian of the Core. Writer’s Block Press will be a name known to all, because name recognition equals sales or future sales for all author’s publishing under it.”
Now, that is a lot of information to take in. If you want to get your business plan critiqued I’d be more than willing to look at it, send it to me at email@example.com or, what I would also recommend, is to take it to a bank and ask to speak to a loan officer and ask them this, “If I were to do business with you, what would you offer my company” hand them your business plan and get it critiqued.
Anyways, sorry that this post was so long. But there is a lot of information here, and I just grazed the surface. Look forward to the marketing plan as this is one thing that writer’s continually struggle with. Happy writing and good luck with establishing your company, whatever that may be.