Have you not come up with a business idea yet? Do not worry. You can mark time in writing until you get a superb idea for your business. This could be disappointing to many, but that is the truth. Still, if you are among those who are passionate about writing, this could be a business idea.
Writing can be rewarding and fun, but at the same time, it is demanding. Even though you are looking to run your writing business from home, you will have to put in the same degree of effort that you would need for any other business.
This blog discusses some essential tips to make it easier to start a home-based writing business:
Develop a business plan
Forming a business plan is paramount as it provides you with a direction. When you have a solid plan, you know all steps to follow one after another. There will be less chance of confusion and frustration. Here is how you should make a business plan:
Analyse the market
First off, you need to research the writing market. Find out:
- What kinds of projects are popular among other writers?
- How much are they charging?
- Can you compete with them in quality?
Having answers to all these questions will let you know where you stand and how you will direct your business.
Develop a summary
It is a must to have a summary as it delineates the position of your business. Your clients may need it to know your vision, mission, your growth plan, and the services you offer to them. Some people think that there is no need to develop a summary as they mistake a fully-fledged business for freelancing.
Of course, you would start your career journey with freelancing, but as you expand your business, you will likely think of running a company offering writing services. You will also need employees to handle projects.
At that time, your clients will assign your projects only when they are sure about your credibility and professionalism.
Look for funds
Funding is an important source that you will have to take into account when it comes to running a business. If you have savings, you are good to go. You can throw it at your business. Unlike loans, you do not have to worry about interest payments.
However, if savings are not enough, you can borrow money through business loans for the self-employed. At the time of borrowing money, this is crucial to check your affordability. As you will pay interest on top of the principal, it could be a bit expensive.
You will not have adequate cash coming in the right from the first day. Regardless of your business type, you hinge on some savings for its operations in the beginning years until it starts generating profits.
Loan payments will be an extra burden on your pocket. If you find it not a better alternative, you should seek help from your family and friends. At least you can avoid paying money as interest.
Set up your business
Once you have done all the preliminary steps, you should think about establishing your business. Here are the steps which you should pursue:
Maintain a safety net
A safety net is extremely crucial because you cannot be so sure about the profits. Even if you have crossed the breakeven point, you will likely face a downfall. The pandemic has taught this lesson to everyone. At that time, you will dip into a safety net to keep the ball rolling.
Equipment, technology and other basic needs
Even though you are performing from home, you require a committed space. You will need a desktop or laptop and a chair and a table. Make sure that your room is equipped with all the necessary items that you need for carrying out your jobs. Internet and printer are also crucial.
Find a niche
Try to find a niche for your writing. As a writer, you can pick several niches like technology, fashion, health, finance, and so forth, but you should pick up one as a specialised niche. Clients would like to know your specialisation before assigning a project.
Determine a pricing process
This is the most challenging job. If you overcharge, you lose your clients. If you undercharge, you will lose your profits. Before deciding on the prices, you should do some research to know what other people in your field are charging.
This will provide you with an opinion of the industry price. Charging above the industry price could be very difficult; if you do so, you will have to justify the prices. Only if you provide the quality will a client be ready to pay you higher than the industry price.
As a writer, you can charge in four different methods – by the hour, by the project, by the word count, and by the page.
It is usually suggested that you avoid quoting a fixed price. Projects are likely quite demanding and complicated to bring out. They may also take too much time, increasing your opportunity cost.
If you charge on a project basis, you will be able to offset the impact of opportunity cost in case it takes a longer time to complete it.
Networking
You will only be able to get a project if people know about your business. Therefore, networking is very important. Here are some ways how you can do it:
Contact people locally. Let them know about your services. If they have online businesses, they may need your writing services.
Use LinkedIn to connect with other people. Promote your service there as well. It is a good platform for personal branding.
The takeaway
Starting a home-based writing business can be daunting, but if you make a plan, you will have an idea of what you are to do. Choose a niche and your target audience, and set prices. Remember to ponder upon your budget. If you take out business loans for self employed, ensure you stay caught up repayments.
