How to Start a Children's Book Business

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Our guide on starting a children's book business covers all the essential information to help you decide if this business is a good match for you. Learn about the day-to-day activities of a children's book business owner, the typical target market, growth potential, startup costs, legal considerations, and more!

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Start a children's book business by following these 9 steps:

You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple step guide to starting your children's book business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

STEP 1: Plan your Business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

  • What are the initial costs?
  • Who is your target market?
  • How long it will take you to break even?
  • What will you name your business?

Luckily we have done a lot of this research for you. Skip on ahead to the Business Overview for more detailed answers to all your questions.

Choosing the right name is very important. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

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STEP 2: Form a legal entity

Establishing a legal business entity such as an LLC prevents you from being personally liable if your children's book business is sued. Consider using a registered agent service to help protect your privacy and stay compliant.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

STEP 4: Open a business bank account

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get Business Insurance

Insurance is highly recommended for all business owners. If you hire employees, workers compensation insurance may be a legal requirement in your state.

STEP 8: Define your brand.

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

STEP 9: Establish your Web Presence

A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.

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Select your state below for an in-depth guide on completing each of these steps in your home state.

Business Overview

Children’s books businesses publish children’s books, bringing illustrated stories to print. For businesses that have captivating books, the industry offers plenty of opportunity. Children’s book sales surpassed those of adult books in 2014, selling more than 2.7 billion books that year.

Additionally, business owners who start this type of business are in good company. Not only do many people have successful children’s book businesses today, but one of the most successful children’s authors in modern history began by self-publishing her work. Beatrix Potter funded the first runs of both Peter Rabbit and The Tailor of Gloucester. The two stories are popular even to this day.

Who is this business right for?

Most people who start a children’s book business have either already written or plan to write their own children’s book(s). Some business owners first try to publish their stories through traditional publishers, and others go directly into self-publishing.

What happens during a typical day at a children's book business?

Publishing a children’s book involves several distinct phases:

  1. Writing the story
  2. Creating illustrations to accompany the story
  3. Designing the book’s layout
  4. Printing the book
  5. Marketing and selling the printed book

Printing is usually outsourced to a company that has specialized equipment for printing runs of books. The other steps may be done by the business owner or outsourced to professionals. (Writing is almost always done by the business owner at first.)

What is the target market?

Counterintuitively, kids are not the target market for children’s books. Instead, it’s parents, schools, and libraries -- as they’re who actually purchase books. Children’s author Kate Klise says that schools and libraries are especially profitable customers as they purchase in bulk.

How does a children's book business make money?

A children’s book business makes money by selling copies of books. Books may be sold individually at retail prices or in bulk at wholesale prices.

What is the growth potential for a children's book business?

A children’s book business may be a small operation that has just a few titles, or it can grow into a major publishing house that has many works in print. Oliver the Clownfish is an example of a small business that has three titles. Scholastic, Inc. is one of the largest children’s-specific publishing houses. The company puts out more than 750 new titles annually.

What are some skills and experiences that will help you build a successful children's book business?

Most business owners that get into children’s publishing already know how to write books for kids. Those that don’t have writing experience can learn by taking classes at a local community college or online. Institute for Writers and Gotham Writers both offer online courses. There are also universities that offer M.F.A. programs in children's writing.

In addition to knowing how to write, business owners also need to know how to produce and sell children’s books. The best resource for this information is the Society of Children’s Book Writers and Illustrators, which has online resources, local chapters and annual events available to associate members. (Self-published and aspiring children’s authors can sign up as associate members.)

Two other resources that discuss the business side of children’s publishing are a book titled The Business of Writing for Children and a class called The Craft & Business of Writing Children’s Picture Books.

What are the costs involved in opening a children's book business?

The costs involved with publishing a children’s book are significant yet manageable. According to Lee Johnson, business owners on a budget can go from a story to having 3,000 copies of a finished book for $5,400. Hiring a more skilled illustrator or incorporating more edits may bring that total up to $8,000 or $10,000.

Ron Pramschufer of Self Publishing, Inc. breaks down the costs a little more:

  • Illustrations often cost $2,200 for a 24-page book and $2,700 for a 3-page book
  • Text editing costs between $500 and $1,000
  • Text and artwork editing costs between $3,000 and $4,000
  • Designing the layout costs between $1,000 and $1,500
  • Printing 3,000 copies with offset printing costs $1.43 per copy ($4,290 total)

Of these, illustration costs can vary the most. Some illustrators may charge anywhere from $5,000 to $10,000, or even more. Higher-priced illustrators may include layout designing in their services.

Any of these steps that business owners can do themselves greatly reduces the total cost of publishing a children’s book. For this reason, many business owners do their own illustrations and layout design. They may also rely on school teachers or librarians, who are familiar with curriculum requirements and grade reading levels, for assistance with certain steps.

Business owners should only do these steps if they’re truly capable of producing professional quality work. Sacrificing the quality of a book’s text, illustrations or layout will greatly hinder sales in the future.

Additionally, business owners should avoid using digital printing. This printing method may be fine for test runs, but offset printing should be used when a book is printed to be sold. At volume, offset printing costs a fraction of what digital printing does.

Where can I find a business mentor?

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

What are some insider tips for jump starting a children's book business?

To help with startup costs and see whether there’s a demand for a particular book, business owners can crowdfund the printing of a book. Many children’s books have successfully been funded through Kickstarter and other platforms. Some of the most successful titles on Kickstarter have been Augie and the Green Knight, Science Wide Open, The Mines of Light and My First Science Textbook.

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Growing Your Business

How to promote & market a children's book business

The best way to promote a children’s book is by getting reviews and awards. Reviews can send a book to the top of a best-seller list and give a book authenticity. Winning awards (especially the Newbury or Caldecott) and being mentioned on recommended reading lists will help increase school and library sales.

Recommended: Get started with local advertising for your business with a $300 credit from Yelp.

How to keep customers coming back

To keep customers purchasing books, businesses need to consistently publish children’s books that engage kids and that adults don’t mind reading multiple times. Books that appease both kids and adults will have grown-ups coming back for more titles.

How and when to build a team

Many children’s book businesses are run by a single person or a small team. Once a business grows, most business owners outsource the work they can’t do rather than hire lots of employees.

Legal Considerations

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a children's book business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

For information about local licenses and permits:

Maintain Personal Asset Protection

Don’t think that just forming an LLC, or any other type of business, will save your personal assets in case of a lawsuit or other matter by itself.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your LLC is sued. In business law, this is referred to as piercing your corporate veil.

Two of the simplest steps that will protect your business, and yourself, are to:

Open a business bank account

  • This separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • It also makes accounting and tax filing easier.

Get a business credit card

  • This helps you separate personal and business expenses by putting your business' expenses all in one place.
  • It also builds your company's credit history, which can be useful to raise money and investment later on.
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CORPORATE VEIL

To learn more about maintaining your LLC's corporate veil, read our guide and protect your personal assets.

Earning Potential

How much can you charge customers?

The School Library Journal reports that children’s books usually retail for between $6.49 and $17.85 per copy. Hardcovers command the highest prices, with mass-market paperbacks getting the lowest prices. Trade paperbacks are in the middle.

What are the ongoing expenses for a children's book business?

After a book is published, the ongoing expenses associated with the title include any marketing costs and storage costs. Of course, businesses must also fund the publication of additional titles.

How much profit can a children's book business make?

With a successful title, a children's book business can bring in six-figure revenues. For example, Augie and the Green Knight raised $384,410 on Kickstarter before publication.

How can you make your business more profitable?

Business owners have multiple ways to earn additional revenue. Selling ebooks is becoming increasingly common. Alternatively, business owners can speak at schools and businesses, and offer teaching workshops to other aspiring business owners.

Next Steps

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