Writers, copywriters, and content creators are in high demand due to their pivotal role in helping companies build their brands, create awareness, drive engagement, and sell their products and services.
In this article, we provide some tips and best practices for starting a copywriting business.
Copywriting vs. content writing
Copywriting and content writing are essential to any digital marketing strategy; however, they are different.
A copywriter specializes in crafting persuasive content for advertising, increasing brand awareness, and encouraging the target audience to take action, such as visiting a company's website or making a purchase. Copywriting is all about making people feel a sense of urgency and appealing to their emotions. Examples of copywriting include emails, social media descriptions, advertising copy and slogans, taglines, landing page copy, and pay-per-click (PPC) ads.
A content writer creates content with the intent of educating or informing an audience. The end goal may still be to make a sale, but content writing focuses more on top-of-the-funnel writing with an emphasis on thought leadership and informative and valuable content. Examples include case studies, white papers, byline articles, blogs, and so on.
For the purposes of this article, we will discuss how you can launch a business focused on either type of writing.
Step 1: Do your research
Writing is a creative profession, but it is also a business. This is why you need to understand your target market, the types of copywriting services that are in demand, and whether your business can be profitable.
Focus on the industry you want to concentrate on and consider the type of content businesses seek. Research what writers can earn in that industry and use this information to set your rates.
Step 2: Establish your USP and your value proposition
A unique selling proposition (USP) can help you differentiate your business and writing services from the competition. Keep in mind that your competitors may include AI writing tools. To differentiate your writing, explain how it stands out from these tools. Consider factors such as the depth of your research, your ability to capture your client's unique voice, and your extensive knowledge of their industry and services. Your USP should be no more than one or two sentences.
Your value proposition differs from your USP in that it should convey the results and outcomes your clients will get from your copywriting services. Your value proposition should also establish that your services are worth the cost. For instance, you might charge a higher rate than a competitor or more than a client anticipates paying, but if you have a proven track record of delivering impactful content that aligns with your client's objectives consistently and ahead of schedule, highlight this in your value proposition.
In summary, a USP highlights your competitive advantage, while a value proposition explains how that advantage benefits the client.
Step 3: Have a business plan
An essential step in launching a new copywriting business is creating a business plan. Think of it as your roadmap; it outlines what your business does and the services you’ll offer and sets goals for the next three to five years. Additionally, it will help you determine how you plan to achieve those goals. Here’s a suggested template for your writing business plan:
- Executivesummary: A brief overview of your business and why it will be successful.
- Company description: Provides detailed information about your business and explains your competitive advantages.
- Service offerings: This section lists the types of writing services that your business will provide.
- Organization and management: Here, you will explain how your company is structured and who will run it. For example, will it be a partnership, LLC, or S-Corporation? Who will be responsible for day-to-day management?
- Market analysis: What is the industry outlook? Who are your target customers? What competition are you up against?
- Financing plan: A description of your funding requirements, your detailed financial statements, and a financial statement analysis.
- Marketing strategy: Outline your overall plan for reaching potential customers and converting them into actual customers. Discuss how your strategy effectively communicates your advantages over competitors.
Step 4: Choose a business structure
How you structure your writing business will impact daily operations, how you handle taxes, and your personal liability risk. Select a structure that provides a good mix of legal protection and benefits. The most common business structures for a writing business are:
- Sole proprietorship: This is the most straightforward since it doesn’t require a state filing. A sole proprietorship is a business owned and run by one person, with no legal distinction between the owner and the business.
- The limited liability company (LLC) and S corporation are two widely used business structures that offer limited liability protection. They achieve this by keeping the business assets separate from the owner's personal assets, along with providing additional advantages. However, it's important to note that there are costs associated with both establishing and maintaining these structures, along with ongoing compliance responsibilities.
There's no perfect moment to form an LLC or incorporate your business; it’s a good idea to get it set up before signing any contracts. That way, you can lower your risk and make it easier to get funding for your business. If you want to dive deeper, check out the section on when to incorporate or form an LLC. For more information, see When to incorporate or form an LLC.
Step 5: Understand the legal requirements of your writing business
Your writing business may be subject to various legal requirements depending on your business structure and location. These include general registration, licensing, and other requirements.
- Business licenses and permits: Most businesses must obtain licenses and registrations regardless of the business entity type. For a writing business, this may involve obtaining a general business license at the local or state level. In some jurisdictions, even if you operate your business from home, you may still need to obtain a home occupation permit. Also, check zoning rules and whether your Homeowners Association (HOA) or landlord places any restrictions on running a business from your home.
- Register with the Department of Revenue: Your writing business may need to register with your state’s revenue department and other states where you have a nexus.
- DBA filing: If you do business under an assumed name, fictitious name, or trade name, you must make a DBA filing with your state or local jurisdiction. This applies to all entity types, including sole proprietorships.
- Hiring employees: If you plan to hire employees, you must obtain an EIN, register with the Department of Labor in your state, and handle payroll. Your state may require you to obtain employee workers' compensation coverage.
- LLCs and corporations: You must also obtain an EIN to form an LLC or corporation. Other requirements include getting a registered agent and filing a Beneficial Ownership Information Report with FinCEN.
- Open a business bank account: By law, corporations and LLCs must keep business and personal finances separate. Open a business bank account and obtain a business credit card for exclusive use in your writing business. This protects liability in legal matters and helps build credit for negotiating with vendors. Establish a business bank account once you start incurring expenses or receiving payments.
For more information, see What are the legal requirements for starting a small business?
Step 6: Set your rates
When setting your freelance rates, consider whether you will establish hourly- or project-based pricing. Both methods have advantages and disadvantages for freelance writers:
- Hourly billing: Charging by the hour ensures you get paid for the time you invest in a task and allows you to adjust your rate for more complex projects. Hourly pricing also mitigates the risk of scope creep. However, hourly billing can deter many clients who prefer to know what a project will cost upfront.
- Project-based pricing: Involves charging a fixed rate for each project, regardless of how many hours it takes to complete. Clients value this transparency; however, if a project overruns or the scope changes, you may end up putting in more effort than initially anticipated.
When starting your writing business, you may choose to bill new clients hourly. As you gain familiarity with the work, effort involved, and the client, you can then consider switching to project-based pricing.
Another option is retainer-based pricing. In this freelance pricing model, clients can retain your writing services for a fixed monthly rate. Retainers are highly valued by freelancers because they provide a steady income each month. Retainer agreements typically follow years of collaboration and demonstrating value to a client.
Step 7: Have a contract template
A freelance writing contract safeguards your interests and defines the work scope for a client. A basic writing contract should include the following:
- The tasks to be completed as part of the project or relationship. Such as a blog post, white paper, or email campaign.
- The deliverables under this task, including the number of drafts to be provided, the final deliverable, and the rounds of edits allowed.
- Due dates for drafts and the final deliverable(s).
- Who will retain ownership rights of the content created?
The contract must be signed by you and the client.
Step 8: Establish an online presence
Your online presence ensures visibility for your writing business. Create a website to showcase your services, experience and skills, and samples of work. Include various examples including links to blog posts, website copy, white papers, case studies, newsletter campaigns, and more.
Optimize your social media profiles (and keep your personal profiles separate from your business profiles). Tailor your social media strategy to each platform. For example, Instagram is great for showcasing visual content, like web pages you’ve worked on, while LinkedIn is ideal for B2B content, such as blogs, white papers, authored articles, and more.
Link to these platforms from your website and keep them current.
