New Business Tips

New Business Tips



This is a little piece I wrote for the Lark Books Website, perhaps it will be helpful here. donald

Be clear that you are a manufacturer and you produce a product albeit it a very creative one. Behave like a manufacturer, know the marketplace, find the best prices on materials, research shops and galleries, pursue all avenues for selling your product and know your competition. Perhaps the most important tool you can use to accomplish this is the Internet. I think it is essential for the 21st century craftsperson to understand the value of the Internet as a source of supplies, and information and perhaps as time goes by an outlet for your products.

Visit several craft shows and even more retail outlets selling products similar to those you plan to make. Take along index cards; make notes of related products and their prices. Look at materials being used and production techniques. Watch for any color, lifestyle or materials trends that may be developing. Then return to your studio and make notes about the impact of what you have seen on your plans. As a creative person you don’t want to be driven by the marketplace, however if you are planning to make a living from your craft you will of necessity have to compete in the bigger marketplace.

Develop a small but complete line. Price it right. Wholesale buyers and retail shoppers buy from depth. For different reasons they both want to see complete thoughts. Jewelers do best when they offer a design in earrings, necklaces and bracelets. Functional potters have to produce all the dinnerware pieces. It is essential to price your product correctly. To do this you must have accurate records of the cost of materials; the labor involved in creating a product, and the expenses that will be incurred selling it.

Write an accurate business plan. Typically the business plan is a tool used to procure financial assistance. I believe the plan is an essential tool for starting off right with a new business even if there is no financing involved. Writing the plan forces the craftsperson to think through their ideas for product development. Further it asks you to develop the steps necessary to get the product to market and to determine that there is a need for the product. These are three essential elements for growing a successful and profitable business. There are a number of books that will help you generate this tool.

Create a budget for the first year of your business. I can’t emphasize the importance of this tool. Fiscal responsibility is essential if you are to grow your business and prosper. I like the idea of 2 two budgets, one for production costs and another for marketing costs.

And finally build a network of people in your field. One of the most important indicators of success is the people you interact with. Your network can help you locate materials, find the right outlets for you product or build your customer base. Don’t forget the Internet, it is an added tool you can use to build and stay in touch with your network.

WELCOME

I am anticipating this blog will become a place for me to share the information I have gathered from my long and multi-faceted career in the handmade word. That information is in my book, Making A Living In Crafts, now however I want to broaden the base and include the lively interchanges of the blog community. I am particularly interested in hearing from and working with the legions of DIYers who may be thinking of turning their hobby into a business.

Further, I look forward to the informative conversations that invariably begin between creative bloggers. I invite you to begin the posting either sharing information or posing questions.