Today I want to discuss with you what is probably the single, most important factor to building a strong, successful publishing business. While all the keys I have mentioned are important, if you miss this one, your business will never get off the ground and your booklet adventure will come to a screeching halt!
The Statistics Are Grim
Approximately 81% of people alive today would like to write a book. Most will never get started. A handful will start and never finish, and fewer still will actually complete their work and end up with a book to place on the market. Of those who do complete their book, the majority will sell less than 500 copies.
Why are the statistics so grim? Because like most entrepreneurs who go into business for themselves, the writers focus on what they love to do – write – and forget that what they are really doing is starting a business. Anytime you create a product or service to offer to the public, you are starting a business. Writing books or booklets and offering them to a particular audience is a business, and it can be a very lucrative one, but you MUST be able to look beyond the writing and the finished product before you ever write a single word.
Why The Most Important Thing Is NOT Writing
As a booklet author, you probably think that the most important thing you do in your business is your writing. After all, if you didn’t write your booklet(s), you would not have a product to sell. But, the writing is really only a small fraction of your business. There is something far more important that you need to focus on in order to make your booklet adventure a success. What is it? It’s the math.
Before you publish your first booklet, there are some numbers you should know. These numbers are extremely important because without them you can’t make a profit, and a business without profit dies. Profit is the lifeline of any business, and the larger the profit you can bring in the better your business will do – and the more successful you will be!
The Most Important Number You Need To Know
What are these numbers you need to know? First, you need to know your production costs. If you were writing a book, I would say you would also want to figure in your time for creating your work, but booklets take very little time to write. So, production costs are first on the list. Why is this important? Because you can’t figure out how much profit you will make if you don’t know your production costs.
Many authors overlook this. They look at the sticker price of their book or booklet, and not until AFTER production is finished do they realize that they won’t be making as much per booklet as they originally thought they would. Knowing the cost of production up front will help you price your booklet so that you make a profit rather than breaking even or worse, accepting a loss of revenue.
Other Numbers You Need To Know
While the cost of production is an extremely important number to know, it’s not the only one you need in order to be a successful booklet publisher. You should also know the size of your market, how much competition you have, how much your market buys from competitors, and how much each new customer you get is worth to you in terms of lifetime sales. Will a customer buy from you only once, or are they likely return for more?
Other numbers you should consider are the costs of reaching your market and product delivery. These numbers can range from very small to very great, depending on your budget and the methods you choose to use.
Knowing your numbers up front will help you keep costs down and profits up. Doing the math may not be as fun as doing the writing, but it’s essential if you want to make serious money.
To your riches!
PS: Would you like to discover the profitable way to write a booklet? Click here.
PPS: Be sure to subscribe to this blog so you never miss a single, important post. Remember, it only takes ONE idea to start the riches flowing to you! Click here to subscribe now!