So, after yesterday’s brief mission statement, the Business Description section will be a little more meaty.  A typical business plan includes: type of business (product/service/merchandising); status of business (start-up, expansion, date business begins operation); form of business ownership (sole proprietor, partnership or corporation); profit potential (special features, customer benefits, experience and qualities of owner and other principals that contribute to success); employment opportunities and other market community benefits; location and hours of operation.

At first glance, I thought that most of the questions didn’t pertain to me as a writer. However, I decided not to judge until I’d written the plan as any other business owner might. Here’s what I came up with for myself (along with little side notes).

Type of Business: Product/Service. [The product is fiction story/novel, or non-fiction idea/angle/article. The service is teaching and speaking. A ghost writer could be considered merchandising.] Owner writes fiction, primarily novels, and some non-fiction. Submitted first short story in 1980 and made first sale in 1996. [Note: Not all writers take the desultory route to publication. My daughter was 6 months old when I submitted my first short story, and my youngest child was 6 years old when I made my first sale. I never stopped writing, but a good business plan would have cut the time to first sale, because I would have set firmer goals and done thorough market research (tomorrow's post).] Owner currently has published 3 fantasy short stories, 7 historical romances, rights reverted, 5 YA novels in print, and a dozen non-fiction essays and articles. Owner is available as speaker and teacher.

Status of Business: Gross revenue has grown satisfactorily since first novel sale in 1999. [Note: most real businesses uses real numbers here,in order to impress a bank into giving them a loan. I did in my paper version. I thought about including my real numbers, but for other writers this information is not terribly helpful because every writer will be wildly different (and no one's going to give you -- or me -- a loan). Plug in a figure that makes you happy and aim for it, and then adjust as you get real figures (more on that in upcoming sections).] Due to growth opportunities, owner is expanding business to include reissuing e-books of her out of print romance novels and fantasy short stories, projecting an additional annual income stream of $1,000.

Current novel has been revised to attract a growth in publisher enthusiasm and support, projecting an advance of $1,000,000, a major movie deal, and nomination for a minimum of three major YA awards. [Like most writers, I have trouble valuing my own work. Ultimately, it is worth the advance that a publisher will pay, and the additional awards, royalties and rights sales that are made. This is where you should allow yourself to be ambitious, but realistic. You may write down $1,000,000 as a goal (which keeps you focused on producing a stellar product); while accepting that you may not receive that on the current project and that is not a failure, but an opportunity to climb to where you want to be. Writers often have goals other than money -- awards, bestseller lists, movie deals, curriculum inclusion, etc. -- you want to put your end goal here, with the understanding that you are on a journey that may take many books, but the end goal is your North Star.]

In addition, owner will pitch non-fiction ideas with the goal of obtaining six non-fiction assignments during 2010, an increase of 100% from 2009. [For non-fiction, pitching is done before writing, so pitching is more important than writing -- the opposite is true for fiction.]

Form of Ownership: Sole proprietorship. [This is the form of ownership that works for most writers. If you work with a writing partner, you may consider a partnership. If you make a lot of money, you may incorporate. Anything but sole prop requires the expertise of a lawyer.]

Profit Potential: The YA market is still growing, despite the economic recession, and is one of the most robust areas for novelists at this time. YA novels are bought not only by readers, but by parents, grandparents, teachers, school librarians, and general librarians. The next project has been developed to appeal highly to all of these audiences. [Doesn't that sound cold? But I'm actually very excited about the project because it has a wealth of real history, a character in an untenable situation who has to think her way out of every possible danger, and my trademark touch of magic. I have learned to tweak the scope of a project in marketing terms, but I never intend to sacrifice story to the marketing gods. Ever. This may not be a good thing, but that's the way it is for me.]

With the launch of the iPad in April 2010, the market for e-books should expand, thus creating new readership for the out-of-print historical romance novels. [The Kindle, the Nook and the iPad mean explosive opportunities for writers with rights back for out-of-print books. However, getting up to speed on this takes time and effort, so some writers may choose not to take this opportunity.]

With the economic recession, many have turned to writing to make extra cash. The market for non-fiction advice and classes from those who have been published is strong.

Employment Opportunities and Community Benefits: Owner offers a blog on her website with advice to writers and insight into the writer’s perspective for readers and occasional guest blogs by other writers. Website contains helpful links for writers and community-building opportunities for readers. Owner contributes to Simon Pulse Ro-Com blog several times a year, and has participated in guest posting and interviews on other reading and writing blogs. [Note: Some writers do a great deal of outreach from the web. Articles, reviews, guest blogs, interviews, contests, calls for submissions, etc. This is community service, though many don't think of it that way. While it is "free", it may lead to sales, and other business expansion opportunities, so it should be considered a part of the business plan. This is the section where that "free" stuff belongs.]

Location/Hours: Owner works from home office, or from her laptop in Starbucks if home is too chaotic. Work begins by 7 a.m. on weekdays and 9 a.m. on weekends. Work day extends, with flex-breaks for other duties and occasional fun, until 8 p.m. on weekdays and 6 p.m. on weekends. [Writers are always working. Writing is rewriting, but it is also research, and stepping back for the big picture -- or in close for the micro pore view. A sane writer will balance the time for actual butt-in-chair writing with the other facets of writing (taking the time to create a good structure can shave a big chunk of time off drafting and revising a complete novel...usually). A really sane writer will balance writing with life. No one who knows me would accuse me of being too sane. I'm hoping a solid business plan is going to help with that.]

So — that’s it for the business description. Although I was skeptical at first, I found the soft spots in my former approach to the writing business (setting clearer goals, understanding where I want my writing career to take me, understanding what I offer to my readers, and to the broader community). I don’t know if I could have created this plan when I sent out my first story in 1980. It takes confidence (and a touch of bravado) to set a business plan to paper with real numbers and concrete goals.

Most writers I know think you can’t, because writing is different from most widget-selling businesses. After having studied some real business plans, I know that’s not true. We’re all in the business of selling widgets, even writers. It’s just that a jewelry maker can see what her competition’s prices are (more on that in upcoming market section) and knows what she needs to break even (cost of supplies, overhead and work time). Once a jewelry maker sells her necklace or bracelet or pair of earrings, she’s done. Writers have to calculate for advances, royalties, rights sales, speaking fees. All of which can continue to come in even after the author of a work has died. All of which is hypothetical until the deal is signed and the check is cashed. But that’s the business, and you can make a plan. Who knew?