As my guest, Stephanie Sims mentioned, yes, we are going to talk about the “F” Word.
**This is an older episode. Some information may have changed
If you are like most writers you probably do not have a background in finance. Most of us have very little experience when it comes to funding a start-up business. Honestly, this is the point where many writers threw in the towel.
I would like to point put that the BEST way to decide how much money you will need and where your funds will be spent is to writer a great Business Plan. Also, it will give you an overview of your business and expectations that you can share with potential investors. Here is a past episode of The Writing Biz with Nina Amir that will help you write your business plan.
Here are 5 Things Stephanie Says Will Help You Finance Your Publishing Adventure
1. Being Realistic About the Money That You Need
When you sit down to write your budget-no wait, come back, don’t run away- think about not just what you know that you will need but also what you may need, It is better to have extra money at the end of the day than now enough. Consider all of your expenses such as travel, conference fees, time you may need off from your job (if you have one) and more.
2. Have a Business Structure
Your book project should be set up as a business for tax purposes and also to protect your personal assets. If you were to borrow money for your book and for some reason it didn’t sell well or you were unable to finish it then you can file bankruptcy and your personal assets such as your home will be protected.
3. Build Your Audience
Ahhh, here we go again. You must build your audience BEFORE finishing your book. Potential investors will look at your audience and see if it strong enough to support the book sales that you expect. They will also want to see a solid marketing plan.
4. Don’t Spend Personal Money You Don’t Have
No, really. Don;t let those pie-in-the-eye dreams of success override your common sense. If you have money in savings that is earmarked for your child’s college, don’t use it. If you have cash on hand that you were thinking of using to tour Europe and you feel that your book is more important then maybe use it towards financing your publishing adventure.
5. If Crowdfunding, Realize It Is Work.
Crowdfunding is big news right now and many authors are finding it is a great way financing option to help pay for publishing costs. But – this is very important, you may want to read it twice – it is NOT easy. You should plan on this being your priority for the length of the campaign and work at it every day. Oh, and don’t forget that after the campaign ends you need to satisfy all the perks and promises you offered.
Stephanie Sims is a recovering investment banker, champion of business owners, lover of the written word, wife of a Frenchman, mom of three. Owner of Finance Ability.
Publishizer – a preorders platform for busy authors.
Patreon– allows you to gain supporters who pledge to help your project to succeed
Indiegogo– empowers people to activate the global community to make ideas
Kickstarter – a vibrant community of people working together to bring new things to life.
Pubslush– give authors the opportunity to get out of the slush pile, prove their talent and market viability, and successfully publish quality books. (IPNE Members get a discount)
Rob Knightingale’s blog post includes a few more crowdfunding sites- 5 Crowdfunding Sites Where You Can Raise Money For Your Next Book
and just for giggles- 4 Kickstarter Campaigns You Won’t Believe Actually Succeeded