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Start A Crafts Business
Author: Preslaysa Williams
Thanks to the abundance of information from books, magazines, and the internet, anyone can easily learn a craft. Today, many American households participate in crafts and hobbies. Most people make crafts for fun or stress relief, but when properly developed enthusiasts can turn their craft into cash.
Maria Edwards co-owns Edwards and Catacutan, a home based jewelry business. She believes crafting for profit is an excellent option. "Most people think crafts are simple diversions for women and children…not a legitimate way to make an income. Since I started in the eighties, the crafts industry has grown at a rate which exceeded my original expectations."
Here are the major aspects of starting a home based crafts business.
Make Up Your Mind
Decide to pursue your craft as a legitimate business venture – not just a hobby. Edwards says: "I feared not being good enough. There were so many other crafters who were better. Then I also noticed there were so many who were worse."
Some craft enthusiasts are wary of selling their handmade items. They make excuses like:
- "My crafts aren’t good enough."
- "I'm not good at selling."
- "What if I fail?"
- “I don’t have the time."
To overcome these fears, write down and realistically assess all excuses. For example, if you think you lack time, track your schedule for one week. Then eliminate unproductive activities and devote that time to building your craft business.
Plan for Success
Failure to plan decreases chances of success. Daren Charles, owner of Gideon's Purse, a women's accessory business says: "New crafters usually depend on energy and inspiration alone to sustain them. This type of crafter doesn't last very long because they never developed a sound business plan."
Address the following areas during the initial planning stages:
Market Analysis
Research potential competitors both locally and on the internet. This will reveal whether your market is already flooded with similar items. If so, create a plan to set yourself apart from the competition. For example, you can offer faster shipping, unique designs, or excellent customer service.Production Plan
Identify the materials and supplies needed to produce your crafts. Also, determine where you’ll obtain these supplies. When starting out, create a plan to produce your crafts efficiently. You’ll want to avoid making huge quantities of one item because it may not be a top seller. Test each item in the marketplace before committing to producing more.Cost Analysis
Many crafters make the mistake of either under or over pricing their wares. Although a cut and dry formula does not exist, Charles says he considers the following: "I take into account materials, labor, overhead, taxes, and profit. Depending on my clientele, I experiment with the value of my products and adjust accordingly."Business Operations
Select the hours you’ll devote to your business each week. Of the hours selected, devote specific blocks of time to production, marketing, and administrative tasks. This ensures an adequate balance in your business operations.Income Goals
Estimate your start up costs and create a five year income projection. Income goals motivate you to continue working, especially in the beginning when sales may trickle in slowly.
After you’ve made up your mind and performed initial planning, consider where to sell your handmade items. In today’s craft market, there are two ways to sell your wares: in person or online.
Selling Your Crafts in Person
Face to face selling enables you to test prices, get consumer feedback, conduct market research, and gain confidence in selling. Industry magazines like Crafts Report and Sunshine Artist list many venues to sell your wares nationwide. There are many options available.
Art & Craft Fairs And Festivals
The four main festival venues are: street fairs; juried art and craft shows; shopping malls; and flea markets. Street fairs typically offer food, entertainment, and crafts. Juried art and craft shows involve a selective application process. Shopping malls periodically host craft exhibits, especially during the holidays. Flea markets display many types of products, both craft and non-craft.
"I’ve made extraordinary profits from fairs and festivals," Edwards says. "However, take into account the event’s popularity and expected traffic. I try to figure out how many other crafters sell similar products and where they'll be set up. Booth location is important."Home Shop And Studios
You can also set up a shop in your home. Check with local zoning officials on their requirements. To advertise a home based shop, donate items for raffles or send special invitations to local clubs and organizations offering them a "private showing." This will spread the word about your store.Open Houses
If a home based shop doesn’t appeal to you, host an occasional open house at your home. Open houses are a great way to resell to regular customers. Invite a select list of customers to see a product display. Again, check with local authorities.
"Get your nerve up and try a home sale," Charles advises beginners. "It'll give you the chance to know people you wouldn't meet otherwise and it's better than selling at fairs because you have the undivided attention of your customers without all the work."Party Plans
Find a hostess whose home you can utilize for a party and send invitations to the hostess' friends and family. For a party to be profitable, you will need at least ten people to attend. During the party, display product samples and take orders. You can deliver or ship the products after the party. Also, encourage customers to book their own party. This will expand your customer reach.Local Retailers
Study small retail businesses in your community and note what sideline merchandise they offer. If you believe your product line fits with a particular retailer, show the owner or manager how they can profit from your product. Potential businesses include gift shops, floral shops, clothing stores, and beauty shops.Businesses
Many businesses, like realtors and banks, need employee or client gifts. Select one item from your line which you could make in quantity and at a reasonable cost to buyers. Then contact some local businesses and make an appointment to discuss their needs.Schools
Speak with school administrators and show how your products will benefit the teachers (make holiday shopping easier) or the school (donate a percentage of sales to a school fund). Pushcart merchandising: Many shopping malls offer pushcarts for rent. The rent is typically high but you won't compete with other crafters. As an added bonus, profits may be higher because thousands of people visit shopping malls every day.
Keep in mind that pushcart merchandising involves more operational planning. "When deciding to venture into shopping malls, take into consideration the mall’s hours of operation. Most malls are open seven days a weeks for ten to twelve hours at a time," Edwards says. "When we ventured into malls, we needed extra help to cover all the shifts."
Sell Your Crafts Online
Here are ways to expland your online customer base.
Etsy.com
Etsy is a website designed for crafters. They charge both a listing and transaction fee. However, Etsy is well known to those looking for hand crafted items. You may find other crafters selling similar products so your market analysis will come in handy when selling through Etsy.Ebay.com
Although Ebay is well known for auctioning, you don't have to auction your crafts. You can sell them at a set price. Like Etsy, it has a listing fee and takes a percentage of each item sold. Ebay offers merchants the opportunity to open an Ebay store for additional fees.HandmadeCatalog.com
Handmade Catalog is one of the original online craft markets. They have a selection of merchant packages available. The most affordable package costs only $4.95 per month or $40.00 per year (if paid up front). HandmadeCatalog.com is indexed by all the major search engines and many small ones. Items listed on their site are searchable on froogle.com, Google's shopping network, shopwiki.com, and thefind.com.ArtisansMarket.com
Artisan’s Market charges merchants $10.00 per month (or $100 per year up front) and ten percent of sales. You will receive 90% of your sales once a month. If you don't mind the delay in payment, this would be another good place for your crafts.
Your own website If you don't want to list your crafts on someone else's website, build your own. You'll have total control and avoid paying fees to a middleman. To maintain a professional internet presence, obtain your own domain name instead of using a free website. Free web sites can make customers wary of shopping with you.
For those interested in a craft business, careful planning is required but the options are endless. Crafting is a growing industry. If you love to create unique items and have toyed with the idea of starting a craft business, the time is now.
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