Effective management is key to the success of any business venture. Hence, managing your book income is the most crucial aspect of ensuring long-term success as a novelist. This article offers guidelines to help you achieve financial stability that guarantees longevity in business.
Continue reading to learn how to manage your book income as a novel author.
Monitor Your Income
Keeping track of the cash flow from your book sales is one way to manage your income. You can achieve this by running different business and personal accounts to help you stay committed to your business funds. Also, create an organized account document using software such as Excel Spreadsheet, Sage50, or QuickBooks to keep track of records of sales, expenses, and royalties. This will enable you to monitor downturns or upturns in your book business.
Make a Budget and Financial Plan
To ensure lasting success as a novelist, having a working budget plan is necessary. Your book business will easily dwindle without an effective budget and financial plan. Therefore, be sure to account for every income from your book sales. Create a budget that accommodates tax payments and unsteady book expenditures. Additionally, make financial plans for publishing, editing, promotion, etc. These will go a long way in giving financial stability to your book business.
Invest in your Writing Career and Business
Improvement in oneself and business is a secret to lasting success and productivity. If you must experience growth and secure the future of your writing business, invest in yourself and your business. Always allocate funds for conferences, seminars, workshops, and courses geared towards improving your career. Also, invest in employing the services of professional editors, marketers, and graphic designers to help boost your book business.
Have Concrete Knowledge of Payment Structure and Royalties
If you use online platforms like Amazon or Selar for your novels, understand their different payment and royalty structures. Ensure you have a good knowledge of the deduction rates and royalties for each book. Also, learn about the durations for the release of book funds whenever sales are made. This will help you keep track of your income and consider better alternatives.
Create Multiple Streams of Income
Another effective way to manage your book income is to have alternative sources of income. This will help to limit overdependence on your book income to avoid depleting the business revenue. Plan towards engaging in other writing-related ventures. Rendering services such as book consulting, coaching new or potential novelists/writers, editing, and ghostwriting are profitable writing business ideas. Moreover, you can utilize your writing skills in blogging or affiliate marketing.
Create an Emergency Account
Every business needs a backup account in case of emergency. Having an emergency account apart from the regular business account is necessary for the future of your book business. Such an account should contain savings that can sustain the life of your book business for 3 to 6 months. This would help protect your book venture from bankruptcy or downturn, ensuring continuity and long-term success.
Have Long-term Financial Goals
To ensure the sustainability of your book business, a long-term financial goal must be in view. Avoid focusing on your present plans or short-term goals that might be inconsequential over time. Make lasting, realistic, and attainable plans that aim at boosting your book income. Also, consider planning towards building a strong and viable structure and implement strategies that will keep generating wealth in the future. Long-term financial plans will help to secure both your book income and the entire business at large.
Conclusion
A good financial management system is an effective strategy for ensuring lasting success in your career as a novelist. Setting up a great account system, long-term financial and budget plan, and understanding of your book payment system will place you on the success row.
Written by Emily Cyril