“People with goals succeed because they know where they are going.” – Earl Nightingale
Research studies have shown a direct link between goals and enhanced performance. Experts estimate that only 5-10% of people think about their goals on a regular basis, and only 1% to 3% have clear written goals.
A business plan starts with goals: what do you want to earn in your first year, your third year, your fifth? Who do you want to write for? What do you want to write? A business plan is really nothing more than organizing your goals and laying out the steps to achieve them.
Most authors approach writing as a creative endeavor and don’t think of themselves as a small business. But that’s what you are. You have to think about expenses, resources, marketing, and production. You have to establish budget guidelines. A business plan is a way to organize all of this, and to have something in writing you can refer back to on a regular basis to make sure you’re staying on track. Or you can adjust your plan as changes and new factors come into play.
The Small Business Association provides an excellent online resource for writing a small business plan, including samples of business plans.
If you haven’t sold your first book, you can utilitze Brenda Hiatt’s Show Me the Money to guesstimate your first sale for the financial portion of your plan. This is an important reality check when you start considering all the expenses involved in your business venture; office equipment, postage, paper, internet access, and so on. The money you earn isn’t your profit; it’s only profit after your taxes and expenses.
Charli,
Wow…that link to Brenda Hiatt’s site was eye-opening. A definite keeper, thanks!
In the past, I’ve told myself that keeping my plans/goals at the forefront of my mind was enough. Not so anymore. Now I know I need to put those plans IN WRITING, otherwise they feel more like wishes than goals.
Enjoying the course so far…hope you’re enjoying your vacation! 🙂
Thank you for the information and the links. I’m looking forward to your other topics!
Carolynn, not only is the average probably a lot lower than people expect, but it’s often paid out in 2-3 installments over a long period of time; as much as 2 years if the last payment is on publication. Very important to know when planning! And yep, having goals in writing tends to clarify and focus them.
Shannon, you’re welcome! More ahead. *g*
Interesting approach. I’ll have to work through that business plan and see where it leads me.
Very interesting, and great points! I think a lot of beginning/author hopefuls don’t consider stuff like this.
I’ve got to admit, though I knew publishing was a business, it was hard to really think that way for the first couple of years. Now, now I know better and I’m trying to utilize my money more effectively for that aspect. Plus, I’m thinking long term for myself for the first time ever. This helps tremendously, thanks!
I probably don’t have as comprehensive a plan as I should, but I do know what books I have to write this year. I also know where I’d like to be a year from now. I figure that’s a start.
Sandra, if nothing else, it really forces you to get specific and look at all practical considerations. It’s a good exercise.
Limecello, I know it’s not the norm, but I think we get sort of brainwashed into thinking business isn’t for artistic creative types and we should leave it to other people. And, um, that kind of thinking can end your career before it ever starts.
Cynnara, it’s not easy to plan long-term when so much can change, but it at least gives you an idea of what you want to accomplish, and then you can watch for opportunities that match.
NJ, that is a good start.
But “business” is such a dirty word to us artists! But I guess if you want to publish, you must keep in mind that you have to “sell” which as we know, brings us back around to the point that this is a business, once we take the initiative to publish. Great advice here to keep it all in perspective.
Margay, glad it’s helpful.