Home Based Craft Business.com

If you are reading this… you probably already have craft -'itis'. It's the disease of crafting and loving it!

And… you have probably entertained the idea of Crafting as a Business.

It's a logical progression. The most common reason for starting a home based craft business is… we need to make money to buy more supplies to make more crafts!

Now… if you are going to start a craft business… you need to be fairly serious about it. Just making and selling crafts without any business basics is a business doomed to failure.

What do you really need to start a craft business?

Oh all sorts of licenses, checking account, business marketing material, product displays, supplies for an office… etc. etc. etc.

But a business needs a foundation to begin. Not a bunch of stuff! 

Foundation.  Yes…You need a foundation. What is a foundation?  A foundation is the first block that we build our business upon. Block by block… step by step… we build our business based on the first block in our foundation.

What is your foundation?

Is it a dream… a desire… an idea… or a thought of owning your own home business?

No… this is not what a foundation block is. Oh… dreams and such are how we get started with working towards having a craft business, but they are not what a foundation block is.

A foundation block is:

• Profitable product ideas
• Profitable pricing of products
• Profitable marketing

What is the common denominator on this list? Profitable. You shouldn't even dip one single toe into the waters of craft marketing… if you don't know how to be profitable as a craft business.

What??? You don't want to do all the work required to define profitable niches in the craft world?

Here is my advice. More business fail every day… because the business owner hasn't got a clue about making profitable products. You can make products or crafty items all day long… but are you creating a profitable business?

A wait and see if can be profitable attitude is usually the process of most beginner craft business owners. 

Most customers don't need you… You need customers. You need customers that want your product at a price they feel is fair. They want quality products… and something they can understand, but is different enough that they can't buy the same thing at another craft fair… or worse yet… the department store. 

So you many create unusual quality products that customers flock to buy. But… is every item you make and sell creating a profit for your business. 

Do you know how to tell if you are making a profit? If you don't… do not start a business until you do.

You can find books and classes that will teach you how to tell if a product is really profitable. It's easy… it is not rocket science… and your not giving you or your business a fair chance of survival if you don't know this basic information.

Crafting as a business is a great part or full time income building opportunity. Don't sabotage your dream because you don't take the effort to create a profitable crafting business. 

photo  credit: Copleys

Down in Tennessee, or was it Mississippi… anyway, down somewhere, they say their was a handmade craft business in existence during the Civil War.

This business sold brooms, kitchen utensils, earthenware and various other items made by local artisans.  Prices on all the products were high during that time… but towards the end of the War… the prices started to be discounted rapidly.

However… the business owner wouldn't sell his products below cost.  In fact… when he died, the inheritors found a clause in his will which stated that under no circumstances should the inventory be sold for less than he paid for them.

His heirs were cautioned to observe this wish under penalty of forfeiting all rights to the remainder of his estate which was of considerable size. The stock was left on the shelves… most of it in very good condition and nicely displayed… but over the years became worthless, and it earned his heirs no money. Instead, it had grown less salable as the years passed, and incurred costs in the form of rent, insurance and interest on business loans.

Take for instance… a fine handmade broom that cost the business owner $1 and was priced at $1.50. The interest alone on the percentage of the business loan used to buy this broom… would now make it's cost $1.05.  At this rate… this broom, if it stayed unsold… would have to now be priced at $2.05 to break even.

Think about some of the craft items you have in your own stock? How long can you afford to keep them? How much of this stock is up to the no profit point now? In theory… we could say that hand made items have little in the way of costs… they are mostly a time investment. But… are you making a profit on that time?

What is the solution?

First… get this clearly in your mind. You are trying to make money. The more often you sell a product… making it over and over and selling each one quickly… the quicker that money can be reinvested into your business or spent on something fun!

Remember the banana man who paid $2 for a bunch of bananas… and then sold them that day for $3? He kept the $1 and bought another bunch of bananas for $2 every day. He never had more that $2 invested in his inventory, yet over the course of a year… that consistent reinvesting of $2 for a bunch of bananas, earned him $312! 

Now if he had only wanted to make half of that annual income….he could have sold each bunch at $2.02, or in other words… have undersold every banana dealer on the street and possibly put them out of business.

Apply this to your own handmade craft business:

• Look at one article, or a set of products.
• Figure out how long you can afford to keep them in stock.
• Do this for every product in your back stock.

Keeping products down and the sales up is what makes the fast money. You must watch the quantity of stock on hand constantly if you are to get all the profit you should. You can do this… it's easy once you get started. 

A home based craft business must sell product or it will die. One of the most successful ways to sell hand made crafts is through the use of local and regional craft shows that are in your area. 

Craft shows will not only boost your business, but will also allow a place where you can find networks for future business.  Because of the nature of hand made crafts, most that are in the crafting business use the craft shows as a major way to sell their product. 

Do Your Craft Show Research First! 

Because of the wide variety of craft shows that are available, there is a certain amount of research and preparation that you can take in order to ensure that you will be successful.  The first thing is to find the craft shows that will fit with the types of things that you are making. 

If, for example, your crafts center on Christmas gifts and items, it would most likely not be logical to rent a booth or space at a summer festival.  You can find the right craft show by networking with other crafters or looking for magazines and online publications that will host events and are looking for crafters.  There are not only local and regional shows available, but also international and national events that you can take part in when looking for the right place to sell your craft. 

Increase Your Inventory Before The Craft Show! 

The second thing to keep in mind for a craft show is to make sure that there is enough of what you are selling.  Often times, someone will buy a craft from you, which will then begin to move around the space where you are selling.  Others see the craft and want the same thing.  It is best to come with plenty of stock.  This always makes happier customers and will help you to look more professional. 

Make Your Craft Show Booth Stand Out! 

When setting up your booth at a craft show you should find a way to make your booth and the product stand out.  This can be a simple set up including decorating your area, and making your products look professional, while organizing them in ways that are eye catching to the customer.  

This doesn't always mean that you must have a booth right by the front door or entrance to the craft show area. My most successful booth was in the back of the craft show floor. But…

• We were the only booth with 6' tall shelving.
• We were the only booth that used lighting
• We were the only booth that you could actually walk into… like a little shop.
• We were the only crafters wearing special clothing that differentiated us.
• We were the only booth that carried the purchases to the car for our customers.
• We were set up next to the most popular food booth.
• this just names a few of the ways this booth stood out… year after year!

Another way to stand out is through the actual craft that you are selling.  By having unique colors and style, you will be differentiated from the rest of the crowd. 

Part of your booth set up should be business cards and more information about the business that you are in.  This is not only to look more professional, but also to gain more potential customers. 

Sometimes, a customer will want to purchase more of your craft outside of the craft show.  If you are prepared, even if the sales are not outstanding at the particular show, you are building networks with potential customers and target markets with all who stop to look at the kind of product you are selling. 

Stand Up and Talk To The Craft Show Customers! 

Absolutly… do not sit down during a craft show. If you must bring a chair, use a tall bar stool height directors chair. You will still be eye to eye with your customers and can talk to them about your hand made items.

One technique that is important to keep in mind and will also help you to stand out is that you must be able to tell the customers a story about your craft… how you make it, why it is unique, etc.  This strategy will help to build on the uniqueness of your product as well as making you seem like a true crafter who really enjoys the craft that is being made.  This is often times, what turns a browser into a customer. 

The nature of hand made crafts is different than most businesses.  Customers like to see the craft in person, feel the material that you use, and understand the different parts of the craft.  This gives them a good sense of the quality that is in the handmade craft.  It is also important because they often times like to get to know the crafter, as it can be a part of the product that they are buying. 

If you are in the business of making hand made crafts, it is always important to be prepared with enough inventory, set up at the right craft shows, and make sure to make the booth you have to stand out.  This will guarantee you the success that you need to begin or continue in the hand made craft business.  

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