What the Hobbyist Book Publisher Should Know About the Book Business – Part II

One of the biggest problems I see facing start-up publishers is the lack of understanding about the business of books. From failing to set up some sort of company structure, to assuming that the List price is what they’ll actually get from a book, there is a lot to know. Here are the Top 6 things you need to know to get into the business of publishing.

1. Books are a $3 trillion worldwide business. Yes, small presses and self-publishers CAN succeed. But you need to look and act as professional as the rest of the industry. Have a professional-quality cover, typesetting, editing and killer content if you want to succeed. Understand what steps lead to acceptance in the trade. (see the 2 posts on this: 15 Ways to Commit Publicide and How Self- and Small Publishers Can Get Pre-Pub Reviews)

2. Understand the economics of the business. If you’ve never been in a manufacturing or retail business, it’s time to learn how things are done. The only time you get full retail price is by selling directly to your buyer / reader. Otherwise, you must discount the book. Failure to discount will result in not being carried by wholesalers and bookstores. It’s your choice, but don’t make the decision in the dark.

3. If you are setting up to publish under something besides your own name (recommended) you need to get business licenses, and any other local, state and federal licenses and filings that apply. I know of one publisher who simply started publishing under a name… and can’t cash any of the checks written to her “company,” since she never set up bank accounts, dbas, etc. Don’t let that happen to you! Start with a search of your city/town’s rules for small businesses.

4. There are no one-size-fits-all solutions to success. Even the big publishers fail over 50% of the time. Know your subject (even fiction authors should know what they are talking about); know your market (who will buy your book), know where they are, what methods they use to buy books, who their tastemakers are. Be unique in your niche and the first to fill that spot. It sounds easier than it is.

5. No one wants to pay $30 for a paperback book from someone they’ve never heard of. If the only way you can make money on your project is to ask for such a ridiculous price, you’ve paid too much for printing. Be aware of what people are paying for books in your area of expertise. Ignore formulas, or statements such as “if people want the information badly enough, they’ll pay more” logic. What matters is how much you can charge that is in-line with all the other books on that shelf – and can you still make money? If not, examine what the problem is.

6. Plan your publishing adventure. It might be “fun” to get a book out, flying by the seat of your pants (in the same way it’s “fun” to lose $30,000 at a casino), but it’s going to cost you. As I’ve said already on this blog: Publish in haste, stare at pile of unsold books at leisure. You need to allow time for proper production of your book, getting the marketing to create demand for the book, and time for some sort of distribution into the book sales channels (see the blog post here).

There are a lot of steps to putting out a book. Find out what they are and understand why each one is done. I’m not saying you can’t break the rules – but understand the rules before you decide to break them.

Of course, I am in the business of helping people launch their book projects. Please contact me about my book shepherding services if you’re interested.