Authorpreneur – the author as entrepreneur

People think the end game of writing a book is getting published, but it’s not. The end game is making money (or influencing/touching/entertaining a vast audience with your story, depending on how you look at it).

Imagine that your book is a start-up business. You’ve taken a great idea and developed it as far as business plan stage – words on the page (hey, just like a manuscript!). But to take it to market, you need capital.

You get two offers to develop your start-up. One is from a venture capital company that offers you a lump sum payment to buy out your idea. They will commercialise it and take it to market, and they will pay you a minority percentage of the profits – let’s say ten per cent.

The other is from a business angel. They propose to support your start-up by participating as an executive director. They will supply their expertise to you to commercialise your business idea, in exchange for a director’s fee and a minority percentage of the profits – let’s say fifteen per cent.

There are pros and cons either way. Do you take the certainty of a lump sum and relinquish your majority hold, or do you pay for an injection of expertise and retain your majority stake?

There is no right answer.

The traditional publishing deal is a bait and switch game. What you think you’re getting is money in the hand with more to come. What you’re actually getting is an initial payment acknowledging your book’s commercial potential, then a minority percentage of all future earnings.

In writing your book, you have created an asset. Sell or hold, it’s your choice.