In a recent survey of my blog subscribers, I asked how interested they were in learning about the business side of being an author. “Not at all, somewhat, or very.” Sixty-five percent said VERY.
So today is my first post focused entirely on being a business owner.
When you read the title of today’s post, how did you answer the question?
If you’re an indie author, you probably answered yes. But maybe you’re a traditionally published author (or seeking to be). Are you still a business?
YES. You are in the business of writing books, no matter how they get published. And if your intent is to make a profit, then the federal government considers it a business.
Hobbyist or Business Owner? Where to Start
Here is an excellent article from the IRS on “hobby or business?” As much as most of us don’t like the IRS, they do have an excellent website with helpful information, and you’ll be able to download or order forms you may need. This article is a great place to determine if you’re writing as a hobby or a business.
Truly the first step in your business journey is to realize you are in business. The next step is to think like a business owner. That means:
- Establishing a separate bank account
- Determining a business structure
- Determining business deductions
- Applying for a tax license, if needed
- And more.
Helpful Free Business Websites
When I launched my editorial business back in 2006, I spent a good deal of time reading through the many and varied resources the Small Business Administration offers on their website. This is an excellent website with 5 main categories: Business Guide, Funding Programs, Federal Contracting, Learning Center, and Local Assistance. Within each category are a plethora of resources.
I would start with the Business Guide, which includes planning, launching, funding, and growing your business. You’ll find info on choosing a business structure under the “Launch” tab. I run my business as a sole proprietorship, but business structure isn’t one-size-fits-all. Examine them and consult a lawyer if needed. The SBA also offers the “10 Steps to Start Your Business” guide.
The Learning Center has a large selection of free courses from planning your business to social media marketing to accounting to legal requirements and lots more. Local Assistance lists, by state, various offices where you can get face-to-face help, including special offices for women, minorities, and veterans.
Next, visit your state’s Department of Revenue or Secretary of State portal (or both). These sites offer state-specific business requirements as well as offer resources.
Take the Leap
Yes, this will take some time to research, read, and learn, but if your writing is more than just a hobby, then I recommend you take the leap.
Because it’s always nice to talk with someone, connect with an SBA assistance office near you, or consider SCORE (Service Corps of Retired Executives), which you can link to directly from the SBA website.
Of course there are organizations that offer paid memberships where you can connect, learn, and grow with other entrepreneurs. One such organization is the National Association of Christian Women Entrepreneurs (NACWE)
Don’t let this overwhelm you. Take one step at a time. Pray and seek God’s wisdom and direction every step of the way.
Do you consider yourself a business owner? Why or why not?
Leave your comments below.
The SBA has a WEALTH of information for starting your biz. And I agree – if you’re an author, you’re a business owner. I started off writing more random books, based on “what I thought would sell” on Amazon. I’ve since honed in my message and the books I write now are all an extension of my coaching business, focused around different aspects of my core message. It made all the difference for me.
Holly, thanks for stopping by. So glad you’ve found your niche in business and books. Admittedly, I’d rather be writing fiction, but seems nonfiction demands more of my time.