The Business of Editing
Disclaimers
Let’s start this off with warnings and disclaimers.
I am not a life coach, attorney, job coach, counselor, accountant, therapist, or anything other than an editor. I am not qualified to give legal advice, tax advice, business advice, or mental health advice. If you need any of the above, please consult a professional.
The information provided in this blog post does not, and is not intended to, constitute advice; instead, all information, content, and materials available on this site are for general informational purposes only.
I love editing. I love working for myself. I love owning a small business.
But not every day is rainbows and roses. Some days are difficult; some clients are difficult (if you’re reading this and you’re worried it’s you—it’s not you). My income is variable, my schedule is variable, and my expenses are variable. If you’re considering professional editing, let’s talk about what the business side looks like.
Bare-bones Expenses
When you first start freelancing, you’ll likely have upfront costs. These expenses are the bare minimum investment you’ll need to be successful as an editor. These include:
Editing training/Continuing education
Software subscriptions (MS Word, PerfectIt, ProWritingAid, Grammarly, etc.)
Membership subscriptions (CMoS online, Canva, etc.)
Optional Expenses
Some extra startup expenses you may want to consider include:
Professionally designed logo
Business registration*
Website
*This varies by state/country so don’t just take my word that this is optional. In some instances, you may wish to register your business but aren’t required to do so immediately. Consult an attorney and/or accountant if you need legal advice or tax advice.
EJL Editing Costs & Expenses
In the name of transparency and honesty, here’s a look at some of the business expenses for EJL. It’s important to note that I’ve been running EJL Editing for over two years now and editing through freelance platforms before that. My expenses may not look like yours. That’s okay.
Software subscriptions (MS Word, PerfectIt, ProWritingAid)
Membership subscription (CMoS online, Canva pro, etc.)
Quarterly estimated income taxes**
Credit card fees
Flexible invoicing fee
Website hosting fee
Website domain fee
Ads & marketing
Contractor payments
Physical marketing materials (business cards, bookmarks, stickers, signage, etc.)
Continuing education fees
Travel, food, and lodging for conferences
**Because I live in New York, I make quarterly tax payments to both NYS and the IRS throughout the year based on what I estimate my income will be for the year. If I don’t do this, I will end up paying penalty fees and owing taxes rather than receiving a refund. If you live elsewhere, do your research on what’s required.
When to Open a Business
There’s no magic answer as to when you should open an editing business. Maybe the answer is right away, maybe the answer is never.
Gaining clients as a new freelancer in any field can be a difficult catch-22. No one trusts you until you have a good reputation, but you can’t build up a reputation without clients taking a chance on you.
I spent several years offering editing services through Upwork and Fiverr before I opened EJL Editing. At that time, those sites provided me with safe and timely payments and a simple way to connect with clients. I made the transition to offering editing services through my own business as soon as I had one recurring client simply to avoid the commissions that I was losing to Upwork and Fiverr.
After I opened EJL Editing in February 2022, I kept my full-time job for another eleven months and did all my editing jobs at night, before work in the morning, and/or on weekends. This worked but it was exhausting.
In January 2023, I left my full-time job and have been running EJL Editing and editing full-time ever since. In August 2023, EJL Editing expanded and Maddi joined the team. Frankly, the transition from part-time hustle to full-time small business happened faster than I expected and I attribute it to luck, hard work, and the following:
I’m married and my husband has a stable and comfortable income. We aren’t relying on my income to survive.
I live in rural NY. Our cost of living is relatively low.
I don’t have any children or dependents (aside from some pets).
Aside from our mortgage, I don’t have any debt.
This is the part where you’re probably thinking, F*ck you, EJ.
And I don’t blame you one bit. EJL Editing is a dream come true and I’ve been immensely lucky.
But that doesn’t detract from your potential for success.
Food for Thought
Now that you’ve heard about my (extremely) fortunate circumstances, here’s my general advice for anyone still interested in an editing career.
Prioritize your startup costs carefully. You don’t need everything right away. (I operated EJL Editing with a logo that I designed myself on Canva for the first year and a half of running the business.)
Save up an emergency fund before you start your business to cushion your living expenses in case you don’t gain traction immediately. (For me, this number was $10,000. For you, it may be different.)
Make sure you’re saving enough of your editing income to make your quarterly tax payments. Even if you’re not editing full-time and/or you don’t have state income tax, you still need to make quarterly payments to the IRS if you’re in the US.
If you don’t plan to operate through a website right away, have a plan for billing clients. (I bill through Square which accepts major credit cards, debit cards, ACH bank transfers, Cash App Pay, Afterpay, Square gift cards, and probably more! If you have international clients, make sure they have a safe and simple way to pay.)
Operate with a professional and clear Editing Contract that lays out terms for scheduling, payment, confidentiality, and liability.
Only offer payment plan options that you can live with. (While it’s great to be able to offer clients flexible payment options, it also means that you as a business owner won’t be paid right away. Consider what that means for your living expenses and lifestyle.)
Choose a website host/payment platform that offers scalable options. Just because you don’t need all the options now doesn’t mean that you won’t later.
Consult local and municipal laws to determine how/if you need to register your business.
Don’t worry about doing everything at once. As your business flourishes, your tools, skills, and offerings can expand.
Carefully vet any contractors, designers, freelancers, or other editors that you work with, subcontract, or recommend to clients. Your reputation is connected to your referrals.
If all of the above scares you a little but you’re still interested in editing, consider editing through a freelance platform or working as an editor for an existing business. You can be a pro without the added stress of running a small business.
Most Importantly
Prioritize the health and safety of yourself and your family above all. You can’t pour from an empty cup.
