All Booked Up

By Suzanne Martin

Don Levy has plans for the 21st century. As owner of Millennium Books in Hamden, Conn., he buys and sells out-of-print philosophy, psychology and religion books. Like many self-employed business owners, he dreams a larger dream to reissue some of the most popular titles in his specialty area that have gone out of publication.

"I see a book as a medium that carries ideas, but I didn't expect to be selling books for this long," Don says of his 5-year-old business. "I thought by now I would be into publishing. So far, I've built this business book by book. I realize it will be a quantum leap to go from selling out-of-print books to publishing them. But that's my goal for the future."

Don concedes that making the leap will require more money, know-how and sheer determination than he can muster together right now. In the meantime, he focuses on selling books while maintaining his hopes for the future. "I've begun laying aside books that will be good for republishing, books that people ask for again and again."

Those books come from Don's stock of 10,000 to 12,000 volumes that he keeps on hand to sell. He catalogs every book by number, then stores them in numbered boxes. Uniform-sized boxes fill a storage area in his garage. To locate a particular book in his inventory, Don simply consults his computer database to find the book's number and the box number where it's stored. The database also provides other specific information, such as the condition of a book. "I can find any book I have within about a minute. The best decision I ever made was getting a computer to catalog all my books."

Don sells books to customers in all 50 states as well as in countries such as Austria, Japan, Korea and France. Book dealers make up about 80 percent of his customer base. They, in turn, resell the books to retail customers. Most of the books Don keeps in stock are hardbacks published within the last 50 years. They're not considered rare, and prices range from $10 to $100.

Finding books to stock may be the easiest aspect of Don's business. He searches library book sales, buys overruns from publishers and purchases direct from individuals who liquidate their collections. He finds most of his books within a 100-mile radius of his home. "I buy locally and sell globally. I try to provide value-added service by getting the right book to customers on time and in the condition they expect, without any surprises."

Even though he provides excellent customer service, Don says marketing has emerged as the most troublesome obstacle to expanding his business. He answers advertisements from dealers who are looking for specific books. About a year ago, he published a catalog which generated retail sales. He's in the process now of developing a new World Wide Web site. Electronic marketing, he says, holds the key to his future success because of its capability to reach potential buyers around the world.

For now, though, Don admits that those marketing efforts haven't met his expectations. "I need to figure out how to cut out other dealers, who are really middlemen, and sell direct to more retail customers. I think I need some mentoring. I need help and ideas for marketing, public relations and advertising."

Don decided to operate his business out of his home as a way to keep overhead costs low. That's enabled him to earn a profit each year, he says. He devotes about 10 percent of his home exclusively to his business. But he doesn't claim the allowable home office deduction on his federal tax form.

"I don't take the home office deduction because I'm afraid it will send a red flag for an IRS audit. The NASE legislative agenda that addresses the deduction could really help me. I hope the NASE's legislative actions will help lead to clarification of the home office deduction so it doesn't flag home businesses for audits. If that happens, I'll start taking the deduction."

Don says he also appreciates the efforts of the NASE to obtain greater tax deductions for health insurance premiums. One of the reasons he joined the NASE in 1994 was for the association's endorsed health insurance coverage.

"I think the NASE's lobbying efforts have made it possible for me to deduct a greater percentage of my health insurance premiums. I can deduct 40 percent this year and it will go up to 80 percent in the future. That affects my pocketbook, so I like that kind of legislative action by the NASE."

Although Don's business has shown a profit every year, the money it generates isn't enough to support his family. To supplement his income, he teaches religion, philosophy and business ethics at a local college. He also helps his wife, a part-time attorney, home school their two children. "Every day is different. Time management is critical," he says.

Still, the joys of being self-employed don't get lost in the daily shuffle, and Don says he's determined to turn his part-time business into a full-time success. "I like the fact that I'm the boss and I make all the decisions. I love getting the checks when I make a sale and I love buying the books. When I finally make this a full-time, successful business, it will give me a great sense of self-esteem and autonomy."


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Millennium Books

Owner: Don Levy, 48, sole proprietor, NASE Member for three years

Favorite NASE benefits: Legislative advocacy and endorsed health insurance coverage

Years in business: Five

Advice about growing a business: "Look into a market niche for your product. Think about the value you can add to the product. Work to your strengths, but be prepared to improvise."

 

Copyright 1997 © National Association for the Self-Employed All Rights Reserved. Any redistribution of this information without permission is strictly prohibited.