Learn how to start a self-publishing company step-by-step. Turn your passion into profit and publish books under your own brand!
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So you want to start a self-publishing company. No big deal, right? Many people launch online businesses (publishing included) every day, but starting on the wrong foot could be costly. You must learn tried and true processes and gain industry insight to give your publishing company the best chance of success. We’re here to help!
We’ve been helping our students start self-publishing businesses for years. This step-by-step guide will tell you everything you should know before you build a publishing company so you can start on the right foot and avoid common pitfalls.
Note: Ever thought about starting your own publishing company — but felt like it was only for “industry insiders” or people with a fancy degree? It’s not. This quick video breaks down how everyday people are launching lean, fast-moving publishing businesses from home… using simple tools. Watch this intro video now and see how you can start building your publishing business — even if you’ve never published a thing before.
Publishers have the incredible ability to amplify voices, share knowledge, and entertain readers. Starting a publishing company puts entrepreneurs at the center of this creative ecosystem. Before diving in, prospective publishers should reflect deeply on their motivations. Successful publishers often recommend writing down a clear "why" statement and revisiting it when facing challenges. This “why” statement will serve as a north star through every stage of starting your publishing company.
So, why do you want to start a self-publishing company?
Once you know why you want to become a publisher, you can start to think critically about the benefits. What’s in it for you? We believe the benefits of running a publishing business are well worth the work. They include:
Complete creative control is one of the most exhilarating aspects of running an independent publishing company. Publishers decide which topics to cover, how books are edited and designed, and how they're marketed to readers.
Unlike working with a traditional publisher, where decisions are often made by committee, independent publishers can move quickly and take creative risks that larger houses might consider too niche. We see “niching down” as an exciting way to sell books to underserved readers!
Starting a publishing company offers financial advantages beyond royalty checks. Business owners can access tax benefits that aren't available to individuals. For example, an LLC structure provides pass-through taxation, meaning business profits are only taxed once on personal returns. Sit down with a tax professional to learn the unique advantages of being a business owner.
Everyone wants to know the same thing about starting a publishing company. “How much can I make?” While traditional publishers typically offer authors royalties of 10-15%, self-published authors can earn up to 70% royalties on eBook sales. Book sales depend on several factors, including content quality, market demand, and marketing efforts, but the math is straightforward. Self-publishing offers more royalties per sale.
Branding is a big deal in any industry. That’s why many people ask for a Kleenex when they mean tissue. Running a publishing company is a great platform to build a brand. A brand with a solid reputation opens up other business opportunities and creates customer connections.
Proper branding can be challenging and will likely change and develop over time. It can even be a pen name you build your brand around. Familiarize yourself with similar businesses and get a feel for what resonates with the people you want to sell books with. Then, start solidifying what your brand looks, feels, and sounds like and who your ideal customers are.
One unexpected benefit of running a publishing company is the community that forms around it. Publishers connect with talented creators, skilled editors and designers, marketing professionals, and passionate readers who share a love of books. These relationships enrich your business.
Our Facebook Group is a perfect example of how valuable community is in the publishing industry. Our students share screenshots of their results, publishing tips, advice, and support. Watching their businesses evolve is a great way to learn with others while you build your own publishing company.
Publishers determine book cover designs, interior layouts, pricing strategies, and marketing approaches. They control when and how books are published and can respond quickly to market trends or reader feedback.
This control extends to financial matters as well. Publishers manage their royalties and have complete transparency in sales data, allowing for informed decisions about future projects and marketing investments. There’s no one standing between you and your business when you start your own company.
Access to technology used to be a gatekeeper to publishing. You had to have a relationship with book printers or own large, expensive machines. Print-on-demand services eliminate the need for third-party printers, significant upfront costs, and warehouse space.
E-book platforms provide instant global distribution, and accounting software simplifies royalty calculations and financial reporting. These tools have democratized publishing, making running a professional operation with minimal overhead and technical expertise possible.
You know the benefits of self-publishing and why it’s become so much more accessible in the last few years. But how do you start a company? Review how to plan, execute, and organize your publishing business from scratch.
Let’s circle back to your “why” statement. The foundation of any successful self-publisher begins with crafting a clear mission statement articulating purpose and values. This becomes the foundation for every decision moving forward. Your “why” statement is the first brick in that foundation.
Your mission might be to create a fast and efficient publishing process to maximize your inventory. Or your focus could be to hyper-focus on underserved niches and strategically market to optimize sales. Whatever it is, define it and document it in a simple statement.
Next, you have to know your target market. Who is going to buy your books? What are they most in need of? Where can you find them to advertise to them? Publishing.ai takes the guesswork out of market research and can help you define the ideal customer for every book you publish.
Finally, develop a simple business plan that translates goals into concrete actions. You know you want to publish great books that sell and generate royalties. That’s great! But what specific steps are you going to take to get there? Our introduction video can walk you through making a list of book ideas, targeting your niches, and more. Sign up here if you need some insight on building your business plan.
Selecting the right business structure is a crucial early decision. It is highly recommended that you consult an accountant and an attorney before making this choice.
A sole proprietorship is the most straightforward option—there's minimal paperwork, and business income is reported on personal tax returns. However, this structure offers no liability protection, meaning personal assets could be at risk if the business faces legal issues.
A Limited Liability Company (LLC) offers the best balance of simplicity and protection for most small publishers. An LLC creates a legal separation between personal and business assets while providing favorable tax treatment.
There are a lot of considerations when you choose a business structure. Don’t be afraid to ask a small business attorney or tax professional to help you understand your options.
One of the most important aspects of choosing your business name nowadays is making sure it's available! Use a tool like namecheckr to search dozens of domains and platforms before you commit to a name.
Once a name is selected, it must be registered with your state's business authority. This process varies by location but typically involves filing paperwork and paying a modest fee. Checking trademark databases is also essential to ensure no infringement on existing businesses.
Next, you must apply for an IRS Employer Identification Number (EIN). This tax ID number is essential for opening a business bank account, hiring employees or contractors, and filing business taxes. Applications can be completed online, and an EIN is issued immediately.
Separating personal and business finances is non-negotiable for professional publishers. Opening a dedicated business checking account when the EIN is secured simplifies accounting and tax preparation while providing a more professional image when paying authors and vendors.
Another best practice is to implement robust accounting software from day one. Tracking all business expenses, managing KDP publisher royalties, and generating financial reports help publishers make informed business decisions. This financial clarity becomes increasingly valuable as companies grow.
Setting aside funds for startup costs, including professional services (editing, design), ISBN purchases, marketing, and legal fees, is also essential. While launching a publishing company on a shoestring budget is possible, having capital reserved provides more flexibility and reduces stress.
The good news is that you can outsource almost all your operations. Publishing on platforms like Amazon eliminates the need for inventory and keeps detailed sales and performance records.
Publishers also need tools for manuscript development and production. Professional editing software, design programs for covers and interiors, and formatting tools are all essential. Many of these are available through subscription models that keep upfront costs manageable. Publishing.ai rolls all those operations into one simple-to-use tool explicitly developed for self-publishers.
Marketing is where many self-publishers falter. Marketing on platforms like Amazon doesn’t begin with paid advertising. It starts with how you list your books, your reader reviews, and your cover design. Advertising your book is a central part of marketing, but you may not see the desired results if you don’t nail the basics first.
We empower our students to create book listings that work with sales algorithms and how readers search for books. Over time, you can build your presence on your publishing platforms and grow your business with informed marketing.
Publishing and selling books is the foundation of a self-publishing company, but there are other revenue streams, too. Audiobooks are a rapidly growing market that pulls in billions of dollars annually. They’re fun and easy for readers and have broad appeal. You can maximize your revenue by producing audio versions of your inventory. Follow our audiobook training for an introduction.
Translations are another great way to maximize sales opportunities. By translating your work into major languages, you can sell your work to a global audience!
Remember about supplemental materials! Many nonfiction books have popular and successful workbooks and other accompaniments. Planners, journals, notebooks, coloring books, and more can be developed from your books and expand your inventory.
As your company grows, you may need to outsource more to up your production, and that’s okay. Reinvesting in your business is an innovative and necessary step. You’ve heard the adage, “You must spend money to make money.” That is where that saying holds true. Creating, publishing, and marketing books alone is possible, but scaling up opens up higher revenue possibilities. You have complete control of your publishing company and can choose how big to grow your business!
Believe it or not, you’ve already done substantial leg work toward starting a self-publishing company. In this post, you’ve:
Take another step forward and sign up for our introduction video here. It will give you a practical look into our process and how our students start their publishing companies. Check out our student success hub and hear what honest people say about starting a self-publishing company with us. We’re so excited to see you build and grow your business!
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