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How To Start A Translation Business

How To Start A Translation Business

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How To Start A Translation Business

How To Start A Translation Business

Are you fluent in more than one language? Do you dream of owning your own business? If so, starting a translation business could be the perfect opportunity for you.

In an increasingly globalized world, the demand for translation services is growing rapidly. A translation business can be a lucrative opportunity for those with language skills and an entrepreneurial spirit, and to help you begin the journey, our guide will take you through the process of starting a translation business.

Business Description

A translation business provides a bridge between languages to clients that include corporations, small businesses, governments, and individuals. These services can range from translating written documents, such as legal contracts or technical manuals, to providing interpretation services for meetings or conferences for various sectors like law, medicine, business, banking, technology, and science that often need to transition between diverse linguistic environments.

This business makes money by charging for these translation or interpretation services, often priced per word for written translations and by time or session for interpretations. The nature of the business lets it incur low overhead, making it a profitable choice when done right.

Industry Summary

The translation and interpretation services industry is sizable and growing in the United States. According to IBISWorld statistics, the industry generated $9.7 billion in revenue in 20221 and is expected to grow by 2.07% through 20282. This growth is primed by increased globalization and the growing immigrant population in the US, which necessitates more translated information for communication.

There’s a rising demand, specifically from sectors such as healthcare, legal, tech, and business, reflecting a greater need for quality translation services. Also, the growing trend of businesses internationalizing their operations and marketing efforts further pushes the need for competent translation services.

This industry also includes freelance translators, language services providers, and translation software companies. That said, artificial intelligence has certainly impacted this industry; however, AI cannot replace humans for now – it still lacks an understanding of context and cultural nuances.

Steps To Start A Translation Business

Step 1: Research the Market

The first step to starting a translation business is figuring out the market. Understandably, this might sound like a giant task, but breaking it down into smaller parts makes it a lot more approachable.

The very first thing you need to do is identify the languages you speak fluently. At a basic level, a translation business is about providing a link from one language to another. So, knowing your language strengths is fundamental. Once you have your languages nailed down, think about who needs these language services. To find this out, ask yourself:

  • Are there communities nearby who speak the languages I can translate?
  • Are there businesses around that deal with clients who speak these languages?
  • Are there specific industries that regularly need these languages translated?
  • Finding answers to these questions will truly set the stage for your business to thrive.

Your next task is to find out where your language services could come in handy. In other words, where is the demand? After you have a handle on the languages you want to focus on, you need to find out who wants these services. Who values the languages you can translate? Look at specific industries, like tech, banking, or legal services. Businesses in these fields often work with a range of local and international clients who speak different languages. Your translation services could be a big help to them. So, if you spot a need for your language services here, it could be a great opportunity for your business.

As the last part of your research, look at the other translation services out there. It’s good to know who you’re up against. You can learn a lot from researching other businesses. By studying their strengths and where they drop the ball, you can find out where your business can stand out.

Step 2: Develop your Translation Skills

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, is a great way to start off as a beginner.

Step 3: Register the Business

While there are minimal requirements to set up a translation company, there are a few items to make sure it is properly registered. Each state has different laws and steps for registration, but the common things to look for include:

Business structure: The first task is to choose and register a business structure. You have four main types to choose from:

  • Sole proprietorship: This is the simplest business structure, often chosen by single-owner businesses due to its ease of setup and lowest cost. However, it offers no liability protection, meaning personal assets could be at risk if the business incurs debt or faces legal issues.
  • General partnership: This structure is similar to a sole proprietorship but involves two or more people. Each partner shares the profits, losses, and management of the business, and each is personally liable for the business’s debts.
  • Corporation: This structure treats a business as a separate entity from its owners. It’s more complex to set up and has more administrative requirements, but your personal assets are protected if the business runs into debt.
  • Limited Liability Company (LLC): An LLC protects your personal assets like a corporation, but it has fewer administrative requirements.

Related: Comparison of business structures

Forming an LLC sounds complicated and expensive, but using an entity formation service guides you through the process so you know it was done right.

Some popular LLC formation services include:

IncFile - $0 plus state fees & free registered agent for 1 year!

ZenBusiness - Best for beginners. $0 plus state fees & free registered agent for 1 year!

Northwest - Best privacy protection. $39 plus state fees & free registered agent for 1 year!

Business name registration: After registering the business structure, you may need to register your business name. This process will vary depending on what business structure you pick. Sole proprietors and partnerships will often be required to register a “Doing Business As” (DBA), while corporations and LLCs register with the state during the formation process.

During this time, it’s also a good idea to check if the name you want is available as a web domain, even if you’re not ready to set up a website yet.

Related: Finding a domain name for your business

Obtain business licenses and permits: Depending on your location, there will likely be a variety of general business registrations needed before opening. These could include a business license, seller’s permit, and Employer Identification Number (EIN).

Related: State guides for general business licensing

Professional certification: Although not a legal requirement, obtaining a certified translation service can help enhance your credibility. For example, in the U.S., the American Translators Association (ATA) provides certification in various language pairs.

Step 4: Set Up your Workspace

With the business registered, it’s time to focus on the operational aspects of your business.

If you plan to work solo and provide written translation services online, operating out of a home office keeps overhead low and is often suitable for freelancers or small operations. However, leasing dedicated office space is probably necessary if you intend to bring on staff or offer in-person interpretation.

With the location figured out, the equipment is the next piece to take care of. For equipment, invest in a reliable computer, high-speed internet, and professional-grade translation software to ensure efficient and accurate work. Additionally, a high-quality headset is essential for video or phone interpreting services. To manage your projects, check out project management tools to track assignments, deadlines, and client information. These tools help maintain organization and help make sure projects don’t get overlooked.

Step 5: Create a Marketing Strategy

Next, you also need to think about how you will make people aware of your translation services. With the wide spectrum of services and industries that need translation services is so wide, there isn’t a one-size-fits-all all answer, but there are some suggestions for a new translation business.

To find customers fast, freelance platforms like Upwork and Fiverr can help you find paying customers who 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 interested in your services. Law firms, financial institutions, web designers, and hospitals often seek 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 highlight testimonials from your happy clients to demonstrate your positive impact on clients.

Step 6: Prepare to Launch!

While we’ve gone over the core steps of starting a translation business, a few additional tasks will likely still be needed. These will vary based on each person’s needs, but we’ve outlined a few of the more common ones below.

Bookkeeping setup: With all the excitement of starting your own business, understandably, accounting might not be the first thing on your mind. However, setting up a bookkeeping system can help make sure you’re ready to handle daily transactions, taxes, and financial statements. You can do this using accounting software or by employing a bookkeeper.

Business insurance: When you’re dealing with translations, errors can come with a high cost. Protect yourself from potentially expensive lawsuits by securing an Errors and Omissions liability insurance policy. It’s a step to consider to help you navigate any unexpected hurdles.

Pricing: How much will you charge for your services? If you haven’t already, research the standard rates in the industry, consider your own level of expertise, and don’t forget to factor in all of your business expenses.

Professional networking: Getting to know other translators, agencies, and individuals from your past work engagements can be helpful. Connecting with others in your field not only provides opportunities for learning and growth but can also pave the way for future collaborations and referrals.

Business bank account: Even though your business involves words and not numbers, it’s still good to keep your personal banking separate from your business transactions. Opening a business bank account makes it easier to monitor your income and expenses, which can save you time when it’s tax season.

This material is property of StartingYourBusiness.com

Common Questions When Starting A Translation Business

How much does it cost to start a translation business?

The startup costs of a translation business are very low, making it a great business to get into. The main expenses to consider are office space, translation software, laptop, and marketing costs to attract new clients. Starting from scratch, the cost to start a translation business can be between $2,000 and $5,000. Major expenses include:

Business registration: The cost of registering a business can vary depending on the state and the type of business entity you choose. On average, you can expect to pay between $50 and $500.

Office space: While many translation businesses can start as home-based businesses, you might want to consider renting a small office space. You’ll need to consider the cost of initial deposits, which can often be equivalent to one or two months’ rent, furnishings, and any renovations.

Equipment: The equipment needed for a translation business includes computers, high-speed internet, and translation software, much of which you may already have. The cost of a good computer can range from $500 to $1,000, while a reliable internet connection can cost around $50 to $100 per month. Translation software can range from free to several hundred dollars.

Insurance: Business insurance is crucial to protect your business from potential risks. The cost of business insurance can vary depending on the coverage you choose, but you can expect to pay a few hundred dollars per year for a basic policy.

Marketing: Initial marketing expenses, including website development and promotional materials, can range from $1,000 to $5,000.

These estimates are just that – estimates and costs can vary based on a wide range of factors,

How profitable is a translation business?

The profitability of a translation business depends on several factors, including the volume of work, pricing, and operational efficiency.

Let’s start with potential revenue for a home-based translation business. Generally, translation services are charged per word or per hour. The per-word cost can range from $0.07 to $0.20, depending on the complexity and language pair.3 If we assume one translator can translate 2,500 words per day, and the service is charged at the lower estimate of $0.10 per word, this comes out to a daily income of $250 and a monthly income of around $5,000, considering a 5-day working week.

Then, there are operational costs, marketing costs, equipment costs, taxes, and software subscriptions. If we consider the following costs:
– Marketing: $500/month
– Equipment and software subscriptions: $200/month
– Miscellaneous office and other costs: $300/month
These costs total to about $1,000/month.

Your profit would then be the difference between your income and expenses. For instance, with a monthly income of $5,000 and expenses of approximately $1,000, the profit would land at around $4,000 monthly.

What skills are needed to run a translation business?

Excellent language skills: To start your translation business, you need a strong understanding of at least one foreign language and a good grasp of the target market’s culture. Additionally, you need excellent written and verbal communication skills. Most professional translators hold a Bachelor’s degree, most commonly focusing on communications, foreign languages, and business.

According to the US Bureau of Labor Statistics, students who study technical subjects such as engineering or medicine may be able to provide a higher level of interpreting and translation. Completing a translation certification will significantly help attract and retain customers to your services.

Relevant links
American Translators Association
ATA Certification

Good organizational and computer skills: Your ability to work independently and manage multiple projects and deadlines simultaneously will be crucial to the success of your business. Make sure you factor in time for quotes, connecting with clients, and invoicing. 

Familiarity with translation software and tools: Applications and technology are constantly changing and improving; staying up to date with the latest trends in your field can mean savings and an increased range of services you can offer. For example, artificial intelligence and machine learning are already improving the speed of translations. 


  1. IBISWorld ↩︎
  2. Verified Market Research ↩︎
  3. Stepes ↩︎

How To Start A Translation Business

How To Start A Translation Business

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