Raising Money to Publish Books

November 2001
by Dan Poynter

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If your publishing company is like most new businesses, insufficient capitalization will be one of your greatest problems. Raising the money you need to pay for the production and promotion of your book or books will take you into the world of finance. If you already had the money, you would not be reading this.

The money is there, and it is available. However it won’t come looking for you.


Where to Look for Funds

Gustav Berle, author of The Instant Business Plan, believes there are four general categories of money sources:

A. YOR (Your Own Resources)

B. FAF (Friends And Family)

C. Banks

D. Other lenders

, from government programs to credit cards.

According to the Wall Street Journal, most entrepreneurs spend their own money to start their businesses. Forty-eight percent rely on savings, 29% borrow from banks, 13% shake down their friends, 4% look for individual investors, less than 1% strike deals with venture capital firms or government agencies, and 5% are successful with other sources.

Some people advise the use of “OPM” (Other People’s Money) rather than your own. Then if your business goes bust and you lose all the borrowed funds, you still have your own money in reserve. But locating OPM takes some searching and using it sometimes has drawbacks.

Consider, for instance:


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