With the dramatic increase in communication across the globe, the demand for translators has increased, but with that comes uncertainty in deciding what to translate. In many cases, a new translation business will start out by focusing on a particular language and providing general translation services, but by specializing in a particular niche, whether it be translating business documents, legal translation, medical translation, or technical translation, the rates you charge can go up dramatically.

Be sure to research potential opportunities outside of general translation to find higher-paying work.

Becoming a professional translator is not something that can be achieved overnight but with dedication and practice, anyone can master the art of translation. Before taking on paying clients, the best way to develop your skills is to invest in certification courses or learn under an experienced translator who can provide insights into the business. Additionally, immersing yourself in activities that require you to hone your language translation skills such as writing, reading, and online courses are a great way to start off as a beginner.

A business entity (also referred to as a legal entity or structure) refers to how a business is legally organized to operate. There are four primary business structures to choose from, which include the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). Each type of entity has its own pros and cons, such as liability exposure, costs, and administrative requirements.

When deciding on which business entity is best for a translation business, it normally comes down to the sole proprietorship and Limited Liability Company.

A partnership opens the owners up to unnecessary personal liability because if a partner does something to get the business sued, or runs off with cash from the business, the other partners are personally liable to repay.
 
The corporation can be a good choice to minimize liability risk because it separates the business assets from the owner’s assets. If the corporation is sued or certain business debts can’t be paid back, the owners aren’t personally responsible to repay them. The downside to the corporation is that it is more complicated than all the other entities and requires more administration than the LLC. If you plan on raising a lot of investment though, the corporation is usually the better choice.

That leaves the sole proprietorship and LLC.

The sole proprietorship is the least expensive and easiest entity to start which is appealing. The downside is that the owner is personally liable should anything happen to the business, which is an important consideration. The LLC offers the ability to operate as a sole proprietorship with the liability protection of a corporation. Depending on the state, the cost to form an LLC runs from $40 – $500, which is pretty inexpensive for protecting the owners from business-related lawsuits and certain debts.

Related: Guide to forming your LLC
 

While there are no licensing requirements specifically for translation businesses, there may be a few to look at before starting your business.

As there are no requirements, it may be beneficial to first become a certified translator as it demonstrates competency, improves your skill in providing accurate translation, and helps better prepare you on how to operate a professional translation service.

For starters, you may have certain registrations depending on the business entity. In some states, sole proprietorships are required to register a business name, while LLCs don’t have this requirement. Additionally, while a business license is a rare state requirement, cities require one, even for a home-based business.

Related: Common business licenses, permits, and registrations by state

Establishing an effective workspace for your translation agency can be critical to its success and help you manage your workload more efficiently. To get started, it’s best to create a comfortable office space with plenty of natural light and regular ventilation.

Set up the necessary technology such as computers, printers, and scanners so that you have easy access to online resources your clients may need.

Setting a dedicated workspace for your translation business should also involve establishing a strict schedule with designated times of the day to conduct research, write translations or take calls from clients.

Keeping your small business and personal finances in separate bank accounts is important to track the income and expenses of your business and identify trends.
 
Many banks offer free business checking accounts, so be sure to find a cost-effective option for your business.

Promoting a new translation service requires creative and innovative strategies to make it stand out in the crowded marketplace.

To find customers fast, utilizing freelance platforms like Upwork and Fiverr can help you find paying customers that may become long-term clients. Using a translation agency that hires freelancers is another option, though while convenient, it is usually lower-priced translation work.

Being active on relevant social media accounts, LinkedIn, and industry forums is an effective way to get the word out quickly and inexpensively, as well as organically gain followers and potential clients for the business. Joining social media groups, such as online forums related to translation businesses or the industry you are trying to target, can also be helpful in increasing visibility.

Networking events like conferences, trade shows, and local Chamber of Commerce events can also help build connections with people who might be interested in your services. Law firms, financial institutions, web designers, and hospitals are often looking for translation services.

Last, a great website and paid advertising on search engines can be another great way to further drive awareness of the business. Be sure to all testimonials from your happy clients to demonstrate the positive impact you had on clients.

With the wide spectrum of services and industries that need translation services is so wide, there isn’t a one size fits all answer, so there may be a bit of experimentation to find the best path for your business.