photo via Farouche on Etsy

So it’s not always an easy road to making money doing what you love. Just because you’re creative doesn’t mean that’s all you’ll need to be successful. Hard work, perseverance, & a learning heart are needed. In this last chapter of Craft Inc. Meg shares some things to keep in mind as you continue to grow your creative business into a successful, money-making machine.

Knocked Off

Whoever said, “Imitation is the sincerest form of flattery” was sooo wrong…at least in this case! Chances are the bigger or more popular your product becomes, you’re going to experience copycats. These are people or businesses who take your idea & tweak it just a bit {or copy it outright} & sell it for half of what you are. I can about guarantee you it will happen, but there are a couple of things you can do to protect yourself & your work.

• trademark, copyright, patents
• consult with an intellectual property attorney

Either way, whether you choose to do something about it or not, don’t let this stand in your way of continued marketing of your product or of creating new designs & products. Remember, a lot of people don’t want to buy cheap, knock off versions & they buy from you because they know, like, & trust you.

Where Are The Orders?

What to do when you’ve invested so much time, energy, emotion, & money into your business only to end up lacking in the sales department?

• Analyze the situation – prices, marketing tactics, seasonal product, wrong craft fair

If you truly believe in your products, be proactive & make some changes.

Nothing different will happen unless you do something different! It takes time to grow your business into what you want & need it to be. Stay positive & network with others who can encourage you & again, continue to learn & try new things…you never know!

Burnout

Burnout happens! Things aren’t happening fast enough & you feel like you’re wasting your time. Things are happening too fast, you can’t keep up & you have no time for anything else. Either way, here are some things that you may want to try to help prevent burnout.

• Spend more time crafting & less time on the computer
• Try selling in front of actual people {craft shows} rather than mainly online
• Set boundaries on your workday…including scheduling in “me time” or time out with friends/family
• Go on vacation!

Life In Balance

Meg says that creative entrepreneurs tend to possess the triple personality of multi-tasker/overachiever/control freak. This is sooo true! It’s hard to keep things in balance when you want so badly for your business to become a success. But…when the house needs cleaned, when it’s time to eat, if you need to go holiday shopping, or call your mom…STOP…& do it.

It’s okay to put your business on hold for life. You should focus on making your business work for you, not you working for your business. This is your creative lively hood. You don’t want to become enslaved to it!

Parent Entrepreneurs

Trying to run or build a business with children comes with many challenges. Your business may need some restructuring, you may need to embrace routines & schedules, & you may even need to back off for a bit. No matter what you decide, make sure you’ve got your priorities straight & it works for you.

Hiring Employees

At some point you may feel the need to hire an employee to help you with your business. Yes, you may have a limited budget, so first start by considering any friends or family members who can do the job & who may need the money. If that’s not possible or won’t work, consider hiring part-time or seasonally.

Focus on hiring people for positions where you’re weakest or doing things you find tedious. Start off knowing what you can afford to pay, what skills are required, & what their daily tasks would be.

You can put an ad in the local paper or advertise online. You may want an in-person meeting or an over-the-phone type thing. Request a resume if you want to know their experience level & check out their social media sites to see what kind of person they are behind the scenes.

Remember to keep up with legal obligations you will have with employees as well. Safe work environment, breaks, worker’s compensation, insurance, & taxes are several things you’ll be responsible for.

How To Be A Good Employer & Boss

It’s an adjustment delegating work, sharing your space, not being in total control, & keeping up with someone else. In order to be a good employer, consider the following things.

• Clearly define your policies & expectations. An employee handbook is a great way to do all that.
• Give periodic reviews so your employees know what areas they’re exceeding at & where they need to step it up.
• Work hard at cultivating a valuable relationship with your employees.

Calling It Quits

It’s necessary to have a determined attitude when growing your business, but you also need to be willing to accept failure. Failure can come in many forms & not all of them mean the end of your business. If that is the case though, don’t be too hard on yourself. It takes courage to put yourself out there & be a business owner.

Make sure you have a plan in mind on how you’ll go about making money if you do decide to call it quits. If that means going back to a day job, no problem, but be prepared to start out at an entry-level position if you have to. You can always teach your craft, write a book, or write a column for a blog or magazine. Think outside the box…you never know what you could do that has all the excitement of your craft paired with a steady paycheck!

Growing Your Business

Entrepreneurship is very Darwinian. Stagnancy will hurt you & fame can be fleeting if you don’t keep at it. Your goal should be to grow your business steadily, at a manageable pace that generates a steady stream of income. That means fixing & improving internal business practices, analyzing problem areas, & constantly marketing.

Consider reaching out to new markets. Create versions of your products that cater to different markets or niches. open up other income streams like writing a how-to book or teaching classes. Be careful not to change direction too much though!You don’t want to destroy any branding progress you’ve worked so hard to make. Consistency is key!

Well, that’s it! We’ve now finished with Craft Inc. & I hope you’ve learned a lot! I know I have. I also hope you’ve enjoyed this book club read & I’d appreciate it if you’d leave me a comment & let me know what you thought of it!

image via Justin & Elise on Flickr

As usual this chapter is going to cover a lot, but here we’re getting into making sales & that means money. So to keep things simple & understandable, I’m going to only cover points that are important in each section!

Craft Fair Revival

•  Not only about selling, but also about congregating with other creatives & customers.
• Great place for new sellers to test their products & prices, get feedback & reactions from clients & peers, acquire ideas for production & booth display, & practice customer service skills.
• Must prepare months in advance & have a large stock of inventory to take with you.
• Goal should be to sell half of what you bring…not everything.
• People are searching for something that catches their eye…not a specific item.
• Keep it clean, uncluttered, & simple.
• Make your pricing obvious.

Just for the record, if you’re interested in more Craft Fair info…I’m currently in the process of putting together a mini blog series on this very topic! Stay tuned.

Have you ever participated in a craft show? If so, do you have any tips you’d like to share? If not, what tips would you like to learn about?

Consignment

• Precursor to wholesale accounts.
• You set your products price, but 25-50% goes to the retail store.
• Make sure you can visit your store often & have a consignment agreement in place.

Have you ever sold your goods for consignment? How’d it work out for you?

Wholesale System Necessities

• Wholesale is when a retail store buys a bulk amount of your products at a reduced price.
• Important forms & info to have available: Resale Tax Form, Line Sheets, Minimums, Order Forms, Terms, Lead Times & Shipping, Return Policy, etc.

Getting Paid

• Be clear on your payment times in your “terms” section when dealing with wholesale orders.
• Payment methods: invoices, credit card, COD, or net 30.
• Invoices: mailed separate from products, include list of goods ordered along with sum due, include payment terms & buyers purchase order number, nice to include a small discount to encourage early payment.
• Credit Card: convenient, must have account & pay fees in order to charge credit cards, maintain good records of sales in case you get a disputed charge.
• COD {cash on delivery}: buyer pays at time of delivery, downside – buyer may refuse the shipment, smart to verify funds before accepting COD payments.
• Net 30: slow process, send customer an invoice & they have 30 days to pay, risky because you’re extending credit, smart to double check if your buyer has the funds.

How do you accept payments for your products? Me…cash up front via PayPal!

Approaching Stores

Getting your goods into local stores is a good baby step for big-time retailers! To do this, start by making a list of your top 5 stores in a city. Start from the top & work your way down the list. You don’t want your products found all over town & neither do the retailers buying them. Be sure to research your target stores & their competition: products they carry, price points, product displays.

When you’re ready to approach your store, call & set up an appointment to meet first. You can also send a package that contains your catalog, line sheet, & any samples you can spare, plus a letter requesting a face-to-face appointment. If you haven’t heard back from them within two weeks, make a follow-up phone call.

If you get an appointment, be sure to show up on time, dress appropriately, & be prepared with forms & samples. Don’t be discouraged if you don’t get orders on your first meeting with the retail owner. Let them think it over & don’t pressure them.

Do you have a process for approaching retailers?

Trade Shows

Want your product in stores nationwide? Trade shows may be the way to go! They’re usually catering to a specific market so be sure to do your research to make sure it’s a good fit for your products. Trade shows also often take place in metropolitan cities so you may need to consider traveling if this is of interest to you!

Booth prices can easily set you back $1000 or more. They’re priced per square foot & it only covers the basics.

Start preparing months before the show. Send out promotions & postcards to retailers & potential stores. Be sure to include your booth number so they’ll know where to find you. Also don’t spend too much time on stocking up on inventory. You never know what will sell. Just be sure to have a good sampling of products along with photos & have a production plan in place for every item in case you get orders.

• Keep your booth simple & clean. Let your products shine! Make sure your booth is well-lit.
• Have a plan for keeping up with orders.
• Have promotional materials available.
• Bring someone along to help you. Trade shows = long days!

Representatives

Don’t want to do all that traveling, setting up, & selling yourself. Hire a representative to do it for you!

• Reps have relationships with retailers
• They are professionals so you’ll be represented well
• Coverage may vary: territory, nation-wide, or local
• Some have permanent showrooms while others travel
• Usually don’t take on new creative businesses – looking for serious businesses
• Make sure they’re a good fit for you & don’t already represent competing businesses

wire necklace by nerdygirl42 on Etsy

So you’ve got your big idea together, found a name for your biz, taken care of all the legal stuff, set up a fabulous online home, developed a killer product, & priced it to sell. Now what?

Marketing baby!

The next step is getting your business & your products out there in front of people so they know you exist!

This chapter is full of ways you can do just that so read on, learn, & share.

Printed Materials

Printed materials are what you give to other people that tell them about your business. It’s business cards, letterhead, invoices, etc. It all should have your logo & contact info on it & make sure your logo reflects your businesses brand. Also keep in mind that you want to come across as a professional, legit business so make sure these materials look nice!

Do you have your printed materials professionally printed or do you do them yourself at home?

Catalogs

Catalogs should be included in all press-kits that you send off to retailers. You can also have these to hand out at trade shows or to give when you visit local businesses. The reason is that you may not always have a good variety of your products with you, but you want to show what you have to offer. Catalogs are one of the best ways to do that.

Your photos are key here. Just like selling online, your photos & descriptions have to sell your product for you. If they aren’t styled attractively or they look unprofessional, a retailer isn’t likely to take you serious because they may assume you don’t take your business seriously.

Professional catalogs can be super expensive, but if you can afford to hire a photographer to take product photos for you {or learn to do it yourself} then you can do it much cheaper. You can use a word processing program to layout your catalog as well & you don’t even have to print up a full catalog. A lot of businesses make mini catalogs & print them on postcard sized paper. Some people even take a photo album with them that contains product photos & mini descriptions. It will all depend on what your needs are, but catalogs are an excellent way to market your products.

Do you have a catalog that showcases your products?

Getting Professional-Looking Pictures

Again, professional photos are a must! You don’t have to spend a lot to get them either. You can hire photography students or you can learn to do it yourself. Here are some tips Meg gives for getting great photos.

• Don’t use a flash.
• Use indirect light to minimize harsh shadows.
• Use soft, diffuse lighting such as a light box.
• Use daylight, tungsten, or halogen bulbs, not incandescent or fluorescent ones.
• Know your camera…read your user manual.
• Use a tripod.
• Be inventive with your surroundings or use a plain background.
• Take multiple shots & be patient.
• Learn to edit your photos.

Do you feel you’ve got your photos looking magazine worthy or not?

Online Presence

Meg says the main reason to have a website is to “connect with your customers & provide them with information about your company & its products.” A website can increase your visibility & help you “get out there” more. Whether you hire someone to design your site or do it yourself, it’s important to make sure it reflects your brand.

Here are some things to keep in mind that will maximize your sites potential as a marketing tool.

• Use a domain name that isn’t too lengthy, is easy to spell, & isn’t confusing when said out loud.
• Display good photographs of your products.
• Update frequently.
• Limit the bells & whistles. Keep it clean, simple, & easy to navigate.
• Offer a newsletter opt-in & don’t forget a goodie for your subscribers.
• Include a press page.
• Include links to retail stores that carry your products.
• Include an “about me” page.

Do you have a website for your business or is it a plan for the future?

Online Communities

Social media sites are a great way to market your business. They allow you to get exposure & create a buzz cheaply, you can easily & quickly get validation & feedback on your products, & you can create a great customer base. You can post photos & descriptions of your products & update followers on your business. You can also gain rapid growth by connecting people to your pages & in turn, they will connect your page to other people.

Another online presence you can make is through blogging. This is where you’ll create a more intimate relationship with your audience. It can be very effective at creating publicity, attracting new fans, maintaining existing fans, & getting feedback. You can create a blog for free or you can pay to have one that’s a little more professional, secure, & SEO friendly. Blogging is a commitment & it needs to be taken seriously if you want it to work for you. Remember to post consistently, post content that is relevant & applicable to your readers, include good pictures in your posts, & try to keep a balance between personal & business.

Do you use a lot of social media sites to market your biz or are you only focusing on 1-2?

Be Your Own Publisist

This section of the chapter is all about the press page mentioned earlier. A lot of creative businesses work hard to get featured on other websites that are fitting to their products. Meg makes an interesting point that a press mention isn’t always about making sales from it. It’s about raising your businesses profile & brand awareness. She say’s it’s essentially a “stamp of approval”. The more visual or written hype you get, the more it solidifies your brand.

She also suggests spending a few hours each week on marketing your business in this way…to get press. Search for magazines or newspapers that are fitting to your biz & look for blogs that like handmade or small businesses. Get to know the names of the editors that you need to send your press kit too. Come up with a “pitch” that you can email to bloggers or editors to see if they’d be interested in featuring your products.

Press Kits

Standard ingredients in a press kit include:

• catalog with clear photos & descriptions
• a line sheet with product numbers & wholesale prices
• a bio with a headshot of you
• color copies of press clippings
• press releases
• product samples

Hiring A Publisist

If you don’t feel like being your own publisist & you can afford it, you can always hire one. A publisist is someone who’s a cheerleader & mentor for you. They get your business & your products in front of the right people.

Be aware that if you hire a publisist, you need to be ready to have new products or lines each season so they always have something new to present to their contacts. You also need to be ready for recognition & being busy.

Remember to do your research if you do consider this route. You want to find someone who will represent your business & your brand well.

Reaching For The Stars

What a day it would be when a celebrity is sited with your product in tow! That in itself could send your business to the big-time! Meg says that if this is your dream, it’s smart not to contact the star directly. Most products rarely reach them that way. The best way to get noticed by a celebrity is to pay for your products to be included in a gifting suite. This is where a PR firm hosts gift lounges at hotels or mansions before award shows or film festivals & celebrities can take the gifts they are interested in in exchange for taking photos of them holding or wearing the products. You don’t always have to pay for this. Sometimes you will be asked to join, but the materials cost is on you.

Have you ever had one of your products promoted by someone famous? Who?

Advertising

Advertising creates awareness & can enhance your businesses image. It can also lead to quick sales & leads. I think this is a tricky area for a lot of small creative businesses because for some it works & for others it doesn’t so much.

If you do consider advertising your products or your business, here are some things to keep in mind.

• make sure your ad will get in front of your target market
• use a graphic designer so it looks professional
• spend the extra money on getting good placement – ex: above the fold

Have you paid for advertising for your business? If so where & how did it work out for you?

Creating A Marketing Plan

Meg says it’s important to create a marketing plan for your business. Press mentions come & go so it’s your job to keep your products in front of your customer’s face. She says it’s smart to think ahead 6-10 months & ask yourself how you’re going to keep the momentum going. A successful marketing program is based on frequency & not for the impatient.

Before creating a plan or even creating any of the above marketing materials, you first need to know who your target market is. To find out more about this, read this post on How To Create An Ideal Customer Profile.

Once you know who you should be marketing to, you need to assess your needs, goals, & budget. Want immediate interest? Try an ad or getting into a high-traffic blog. Have a tight marketing budget? Put your energy into publicity. This may take some time, but it can pay off in the end. You have to send new materials to editors, follow up with them, & remind them about your biz until they bite. Again, PR is not for the impatient!

Do you have a marketing plan for your biz? Care to share it in the comments below?

{personal image}

Oh my goodness! Did you realize that this week marks the halfway point of our Book Club review! Yep! Only 3 more chapters to go after this week.

Chapter 3 taught us that when we come up with an idea for a new product we need to research it, make it, & then evaluate it. Once we’ve done all of that & we’re happy with the outcome, it’s time to start making more of that product at a production rate & pricing it in order to make a profit. I don’t know many shops that don’t struggle with producing & pricing & that’s what Chapter 4 is all about.

Sourcing Raw Materials & Vendors

It can be expensive to go to your local craft store to by bits & pieces of materials needed to create your products. That in turn ups the price of your finished product…your retail price that is.

Ordering materials in bulk &/or at wholesale cost will help keep your costs low & there are a few ways to go about doing that.

1. Google search – beware of crappy links!
2. Researching the Thomas Register of American Manufactures
3. Trade shows

Be sure to contact several vendors for the same material & don’t go with the first one to offer what you’re looking for. Make sure they have competitive prices & great customer service! It’s also a good idea to get price quotes on a variety of quantities. Yes, the more you buy the cheaper the cost to you will be, but remember, you have to have the money & you want to be sure that you’re going to be able to sell what you’re making. You don’t want to be stuck with a ton of unused materials!

Do you have a method that works well when it comes to finding materials or vendors?

Buying Equipment

Keep overhead low & be careful about making large investments…especially at the beginning of your business! It’s smart to save up for large purchases or check into buying used.

You may have to think twice about investing your business cash into equipment if efficiency is suffering & your orders are piling up though. Just be careful, consider the pros & cons, & make your decisions wisely. Remember, you’re trying to build your business up, not bankrupt it before you even get it started!

What’s the largest purchase you’ve made so far for your business?

The Manufacturing Life

Meg says that when it comes to craft businesses, production is the lifeline of your company. In the beginning we almost always do the work ourselves. It’s not until later that we can afford to hire employees to help or to have our products manufactured.

We first need to streamline our process in order to increase production. Then we need to break that process up in to smaller tasks & find ways to simplify each task. The end goal is a mini-assembly line.

This is super important, especially if you get a large order for one of your products! I’m talking 500 of this or 1000 of that. I’m sure we’d all be shouting “Woo-hoo! Oh happy day!”, but at the same time there would be a lot of work ahead of us & we’d better have a system in place for getting all of those orders together!

Another tip Meg gives in this section is to divide work into that which can be accomplished by a skilled crafter & that which can be accomplished by a less skilled crafter. It doesn’t take much skill to package products, but that will be a huge part of your production line.

What does your production line look like for your craft?

Internationally Made

This section is all about having your products manufactured out of the country. A lot of times it’s more expensive to have your products made locally so many businesses will go to other countries to have their products made. Obviously if your company is dedicated to locally made or producing products nationally, then this won’t be for you.

If you decided that this were an option, make sure you correspond with the company & both of you have a thorough understanding of what needs to be done & what will be done.

You can find companies that do international sourcing on the web or at trade shows.

Pricing Your Products

Placing a price tag on a product is about creating a perceived value. Customers don’t always want low prices. If you’re shopping at Wal-Mart then you expect low prices. If you’re shopping at Macy’s you don’t. So this is where your branding comes into play.

Are you Wal-Mart, Macy’s, or somewhere else on the totem-pole of value?

What are some reasons we tend to price our products low?

• we feel guilty about the profit margin
• we wouldn’t pay that much if we were buying a similar product
• we want to make sells

These are just a few, but there are many reasons why we as creatives tend to under price our products. Meg says that most buyers have a preconceived idea on how much an item should cost so it’s up to us to find a happy medium. Remember that market research from Chapter 3? Researching prices is a part of that.

Here are some questions to ask yourself when researching prices.

• What is the cheapest this type of product is selling for & what’s that company like?
• What’s the most expensive this product is selling for & what is that company like?
• How is my product different & where does my business stand in all of this?

There may be times when you’re asked to explain your prices, but Meg says you should never apologize for them. Try your best to inform your customer of the value of your product, but above all, your product should speak for itself.

So what are you? A Wal-Mart or a Macy’s??

Creating A Pricing Formula

There are many different ways to come up with a pricing formula & you can even find some online. Next week I’ll have a couple of special posts up on this topic alone including the pricing formula that I currently use in my Baby Swank shop.

Meg says the best pricing formula will take into account the cost of materials, labor, overhead, & profit. If overhead & profit are a tad overwhelming to you, you can take your material & labor costs alone & place a set markup percentage on that.

The pricing formula you decide to go with {or create} will vary depending upon your craft & again on the value of your products.

Do you have a pricing formula that you use to determine your product pricing? Care to share it with us?

Evaluating Your Pricing

When evaluating your prices, the goal is that everyone gets a good deal. Your customer is happy, you make a profit, & if you offer wholesale pricing then the retailer has room to make a good profit as well. Meg says that pricing is a balancing act between what an item actually costs & what your market would be willing to pay for it. Again, this is where your perceived value comes into play.

One way to evaluate your prices is to test them by selling your product at a craft fair or offer it to your past customers before offering it to everyone. See how it does & go from there. You can always change your prices, but it’s a good idea not to change them too often. You want to be as consistent & professional as possible!

Are you happy with your current product prices? If not, what have you learned here that you’re going to do differently?

Next week…Marketing & Publicity Strategies!

modern pottery by Suite One Studio on Etsy

My Etsy Shop, Baby Swank, is going to be 1 on September 15th! I feel like I’m just getting started & I guess in a lot of ways I am. I’m old enough to be getting more established, getting my name out there, & getting into a grove, but I’m still new enough to continue evaluating & tweeking the way I do things…especially my products.

What about you? How old is your creative biz?

Chapter 3 – Your Personal Style & Your Products

I really liked Chapter 3! It beats the pants off of Chapter 2 with all of that necessary, but boring legal stuff. So today, I’m gonna hit briefly on the sections of this chapter & let you all know what stood out to me. Don’t forget to let me know what you thought too in the comment section below!

Right off the bat, before I even started the chapter, I loved how she talked about branding through your products. She said, “Your task now is to create products, whether a cohesive collection or a hodgepodge of goodies”… that “should capture the eye & imagination of potential customers.”  

It’s true that no matter where you are in your business, you’ve probably already faced some stiff competition out there. There will always be some other business that makes what you make & does things differently, maybe even better than you do. Your job is to “make your product one that leaves a lasting, positive impression” on customers & become one of the competitors yourself!

Keeping It Real

Be who you are & don’t change just to “fit in” with a certain group. People can see through a fake person after a while & if you try to run a fake business, you can be sure your customers will eventually see though that too. Besides, if you don’t run your business for you, doing what you love, you’re gonna get burnt out & then everything was a waste of time. So be yourself & remember, you can’t {& won’t} please everyone!

Has this been a issue for you in your business?

Creative Mission Statement

The purpose of a mission statement is to help you stay focused & on track with your goals or your businesses “big idea”. BTW…your tagline, most of the time, will come from your mission statement. Meg says, “A creative mission statement is essentially a verbalized belief system, enunciating your motivations, values, & vision”.

So for me, my mission with my shop is to create unique, handmade products for babies & toddlers that are natural, good for the environment, fashionable, & save you money in the long run. So my tagline, “Fashionable & Eco-Friendly Products For Babies & Toddlers” comes right from my mission statement.

It’s a good idea to write out your mission statement, decorate it somehow, & display it wherever you do your work so that you can read it from time to time especially when you’re evaluating products or new ideas for your business. Does it add up to your “big idea”?

What’s the mission behind your business?

Company Identity

Creating you business’s identity is also known as branding your business & this can be one of the hardest parts of starting up a business. Sometimes you just don’t know what kind of brand to create. Sometimes it just happens over time & everything falls into place.

Meg says, “Your brand is an idea, not just your logo, colors, stationary, & packaging – though those elements will reflect your brand.”

Ask yourself these questions…

• How would you like others to describe your business?
• What do you want your business to represent?
• Are you being consistent in your business across the board? – website, blog, FB page, etc.

What is your business’s brand? Is this a struggle for you in your business?

Starting the Ideation Process

Ideation process…that’s the process of taking your “inspiration” & turning it into a full blow product. In this section, Meg gives tips & asks questions about getting from Point A to Point B.

Here are some things to keep in mind when you come up with a new idea.

• Your product doesn’t have to be drastically different from what’s out there, just different enough that it presents a new angle or an innovative improvement.
• Start small & think of the details rather than the whole process or the collection.
• Don’t rush! Give your ideas time to develop.
• “Collections should be created around a single concept or source of inspiration. There should be a consistent aesthetic, stylistic vocabulary, & design rigor that runs through all your work.”
• Products should vary in purpose, price, & production. No single product will please everyone. Have a variety so that you have something to offer all of your customers.

Capture Your Ideas

When inspiration hits you, what is it like? Do all of these thoughts & ideas come rushing into your mind at once? Maybe. Is it a single idea or source of inspiration? Maybe. Either way, it’s important to capture your ideas no matter what form it’s in. A lot of creative people that I’ve talked to recommend having a notebook with you at all times to write in whenever inspiration raises it’s lovely head. You can write, draw, or do whatever you need to remember your thoughts.

What do you do to capture your new ideas?

Setting Goals

Goals, goals, goals. They’re very overwhelming to some people, but they are SOOOO important. How else will you know if you’re accomplishing what you need to? You may have a vision for your business, but without goals how will you reach it?

The easiest way for me to set goals is to start with my long-term goals. What do I want to accomplish by the end of the year? I write them all out, then I narrow it down to 3-5 of the most important, most productive goals on my list. Then I try to break each one down further…into 12 bite sized pieces. That becomes my monthly goals. Now have 3-5 things to accomplish each month that will bring me closer to completing my big, yearly goals.

For me that works, but everyone has a way of doing what works best for them.

How do you make goals for your business & how to you stick with them?

Market Research

The jist of market research is that you want to make products that people will buy. How do you know what people will buy?

Here are a few ways to figure that out.

• look through craft or lifestyle magazines to see what types of products are being featured in them
• visit local stores that carry your type of products to see what’s actually out on the shelves
• visit craft fairs or trade shows & pay attention specifically to your competitors

How do you go about researching your customers base for product ideas?

Trend Watch

It’s important to know what trends are in because obviously people follow trends, but Meg advises that you stay true to your brand {your identity} & be careful about jumping on a new trend bandwagon too soon. A lot of trends are mass produced & saturated. If you follow trends just to make sales she says to watch out for burn out. “The best trends will be the ones you initiate, not follow.”

Copying Your Creative Muses

Whoever said, “Imitation is the sincerest form of flattery” was full of it! It’s straight up copying & it stinks…for you & the person you’re copying. Just make a commitment right now not to do it…ever!

Understandably, we get inspiration from other creative artists out there & that’s okay. Meg suggests that it’s even okay to copy their techniques in order to learn & grow from them, but certainly not to use them for our own. So what do you do with the inspiration you get from other creative businesses that may or may not be similar to your own? Take that inspiration & make it your own. Work it in with your brand, change it up, make it better, just don’t copy them. That takes you from a creative business to a copy business. No good.

How do you go about taking inspiration from similar businesses & making it your own?

Using Images & Patterns

This is something I see abused all the time! As a handmade creative business you are making & selling products from purchased materials, patterns, or images. It’s your responsibility to make sure that what you’re using is available for resale & isn’t copyrighted or for personal use only.

I’ve run into this with my Washcloth Bibs before. Around this time of the year, people start wanting team bibs & I have to make sure that they buy the fabric, send it to me, & I don’t charge them in any way for the fabric. That’s the only way I can make them something using a licensed fabric. I can’t legally buy it, mark it up, & resell it.

Same goes for patterns, whether they’re sewing, knitting, crochet, or embroidery patterns. They can’t be copyrighted. Printed fabrics like Amy Butler Fabric count too. They specifically state “for personal use only – not for resale”.

Another part to this puzzle is images. Clip art, graphics, & photos used in your work & yes, even on your blog, have to have the owners permission to be used, duplicated, or linked too. Mayi Carles said it best! She uses someones photo in her blog posts then sends them an nice little email letting them know she used their image, links to the post it’s in, & tells them that if they’d like it removed then she’ll do it immediately, no questions asked. I took her advice & have been doing the same thing since the beginning of this blog & not once have I ever been asked to remove an image. I’m usually thanked for spreading their work around!

Do you have a process for checking for “rights” on images or patterns?

Packaging

Packaging is another area where your brand will come into play. Your packaging needs to reflect your business & it needs to be balanced with your product. You don’t want to have a great product & unprofessional looking packaging. You’ve heard the saying, “Never judge a book by it’s cover.” Well that doesn’t hold true when it comes to products. If the packaging looks crappy then people may assume your product is crappy too.

Product packaging is something that takes time & eventually you’ll come across something that will just work for you. The key is not to give up or skip this important part. Keep searching for the right look & try different things. It’s out there. You just have to find it!

Do you have photos of our product packaging for customers to see? Where do you use these photos at?

Evaluating Your Products

Questions to consider when evaluating your products:

How do you evaluate your products before offering them for sale?

Protecting Your Work

There are two ways you can protect your work. You can either apply for a patent or copyright it.

Patents are offered by the US Patent & Trademark Office & it protects inventions & discoveries. Patents last 20 years.

Copyrights are registered with the US Copyright Office & they protect authorship including illustrations, patterns & photographs as well as your web site content.

Okay, so that’s Chapter 3! What are your thoughts? Is your business branded? Is that an area you struggle with when it comes to your business? How are your products holding up during evaluation? Are you being careful when using images, materials, & patterns that you’ve bought or found?

There are a lot of things to ask yourself in this chapter, but it’s best to know this info ahead of time! Be sure to let me know what your thoughts are in the comments below!

scales of justice print by collageOrama on Etsy

So Chapter 1 was great, but Chapter 2, IMO, was even better…but way more stressful. Am I the only one who thought that? There’s so much info in this chapter to take in, consider, & put into use. I’m just gonna cover each area briefly…I think! LOL!

Quiz: Are You Entrepreneur Material?

So did you take this quiz? I did & I got 7 out of 9. Not bad! I think you were supposed to get 5 or higher. If you got less, you had a lot of learning to do. Doesn’t mean you’re not cut out for running your own biz, it just means it may be a wee bit more difficult for you.

Business Plan Basics

So the jist of this section was to set you up for making plans & goals & for organizing your business. It’s a good idea to have a plan for what you want your business to be, look like, & where you want it to go, but remember, not everyone has it written down to a T. Plus it will change overtime & that’s okay. The purpose is to have something visual so you have an idea of where you’re headed. That way you can see it & stay on track. You may change parts of it, add to it, or take things away, but it’s meant to be a guide.

Here’s a list of things to consider including in your business plan.

• projected timeline
• company description
• location & place of business
• list of owners & responsibilities
• creative mission statement {see My Mission}
• company identity
• target market {see How To Create An Ideal Customer Profile}
• market research
• products offered & frequency of release
• projected goods in debut line
• equipment & materials
• production
• selling strategies
• marketing plan {see RYES2011: Marketing}
• financial plan {including budget for 1st year}
• revenue projections
• exit plan

Designing Your New Career

This is a must to understand. When you decide that you are going to start a business {see Building A Business…Is It Worth It}, you have to keep in mind that it’s your business & you need to have an idea about how you want to run your business. It’s not just about the money {although that’s a huge part}. It’s also your life. Meg says that you’re basically designing your new lifestyle so you should incorporate elements that are stimulating.

Naming Your Baby

So sometimes this is really easy & sometimes it’s a complete pain. Meg gives some tips on coming up with a great name for your business.

1. Make a list of several names & survey friends & family.
2. Make sure it matches your business’s goods & aesthetics.
3. Will it sound good 10 years from now?
4. Does it allow you the flexibility to grow & expand?

Once you have a name picked out, don’t get too attached to it  or start printing up tons of marketing materials just yet. You still have some homework to do.

• search for companies using that same name
• check for available internet domain names
• check to see if that name is trademarked

If you find any of this, check into it before officially going with that name. You don’t want to invest a lot into it & then have to change it down the road!

Have any of you run into any issues with your business name? What was it & what did you do?

Business Essentials

So there’s a fine line between being a business & having a hobby. Here’s what it comes down to. If you’re selling your work, services, or products to make a profit, then you’re technically a business & you’re subject to taxes, rules, laws, & regulations. Here are some things you’ll need! Watch out…there are A LOT!

Business License

• apply in your city for small fee
• yearly renewal fee based upon business’s total revenue

Zoning

Fictitious Business Name

• referred to as “DBA” – doing business as
• apply through county clerk

Certificate of Resale

• need this if you’re selling taxable goods
• aka…”certificate of resale” or “seller’s permit”
• used if you purchase goods/supplies at wholesale cost
• you also need to obtain this from buyers who buy your goods at wholesale cost
• used for filing sales tax reports to the IRS – to show what taxes were collected or not collected

Federal Tax ID

Business Bank Account

IRS Publications

• you’re responsible for taxes on all levels: federal, state, county & city
• hobby vs. business
• business – truly making an attempt to generate a profit
• hobby – not profitable 3 out of 5 years

A Team or Solo Effort

This was a long section, but important to consider. Meg goes into things to think about when considering going into business with someone else. It seems like a lot would be easier, but once you consider all she has to say, you may think again. Here’s what stood out to me.

• partnership is like a marriage – behavior & expectations play a HUGE role
• can be satisfying when operating like a well-oiled machine & emotionally draining when things aren’t running smoothly
• draft an agreement in writing that outlines each person’s responsibilities, duties, & percentage of ownership
• you’re not only liable for your actions, but your partners as well
• if things don’t work out, friendship may be the cost
• type A personalities usually aren’t good fits for partnerships
• want or need someone else’s skills? consider paying her/him for their time.

What’s Your Legal Structure?

Sole Proprietorship

General Partnership

Limited Partnership

S Corporation

• limited liability
• no double taxation
• must hire a lawyer or accountant to file for you

Limited Liability Company {LLC}

• favorite for small business owners
• limited liability
• allows more shareholders than S corporation
• need to file an operation agreement with state agency
• doesn’t require attorney or accountant to file

Financing Your Business

First off, it’s expensive…for the most part. It depends on how you go about it. If you start your biz as a side-line career then it may not require much start up capital. If you start it as a full-time job, then you’re gonna need money to live on & to build your business with.

• biz related expenses should come from business account or business credit cards {be careful about debt!}
• be prudent with purchases
• keep your overhead low
• start out small & work your way up {studio space, equipment, employees, etc}

Meg says to remember that within the first year or two you should expect to make very little money & all income should be reinvested to grow your biz. Even though you’re the owner, you’re often the last to get paid!

Record Keeping

Uggh, this is one of those questions I missed on the quiz at the beginning of the chapter! I’m organized…half of the time!

This is one of the least exciting parts of business, but it’s one of the most important. You need to be a paper hoarder & file copies of invoices, bills, checks, & receipts in an organized manner. Besides creating a paper filing system, you need to log everything as well. You can log things two ways.

1. The old-school way – keeping ledgers
2. The technology-age way – using computer software

Software makes bookkeeping much easier, but again it may be an expense that has to wait. If you decide to take the old-school approach, it’s a good idea to know some basic accounting know-how. You can also take some small biz workshops or classes that can help with this.

Basically it boils down to making copies of EVERYTHING & filing it in an organized manner.

What type of bookkeeping method works for you?

Whew! What a chapter! Does anyone else feel like they’re on information overload besides me? I can already tell I’ve got a ways to go on the basics of business & record keeping! What about you?

vintage glass glitter by christopher pines on etsy

Creative Mythology

Meg starts out this great book with 5 myths that a lot of people believe about starting up a creative business.

They include:

• To be an artist you should have a background in fine arts or design
• I’m too old to tap into my creativity & start my own creative business
• All of the great ideas have already been done. Someone else can do it better than I ever could.
• You need to quit your full-time job to make time for your craft.
• You need to wait for the “right time” to start your creative business.

How many of you have believed these same myths before beginning your business? How many of you currently believe these myths & have yet to start your business?

What’s Your Creative Bug

This part of Chapter 1 was a homerun in my opinion. Here Meg talks about what exactly it is you’ll be creating.

What are you naturally good at? It’s not time to pick a new hobby & start a business with it. You have to hone in on that talent & it can take time, so pick something you’re good at. Don’t know what you’re good at? Take some classes either locally or online. Try out a variety of different crafts. Eventually one will click with you!

Can you see yourself working on this craft every day? I think that’s the big question. Do you love it & would you do it even if you didn’t get paid. You have to think of it like it’s your full-time job or a career even. Why get started in something & invest so much time, money, & energy into something you’re going to be sick of in a year’s time! Crazy!! Don’t really have an answer to this question or maybe you’re just not sure. Then I’d advise you to take a step back & start out slow. Look at your new endeavor more as a “creative hobby” than a “creative business”. Don’t worry! It can always grow into a business!

Overall, choosing a craft or perfecting one that you already enjoy can be a time-consuming task. If a successful business is your goal though, it’s worth it. Your patience & persistence will pay off.

How did you know you’d found your craft? Did it take you some time experimenting or was it love at first sight?

Building Creative Confidence

Confidence = Optimism

It doesn’t really matter if other people view you as creative or not. What does matter is how you view yourself. We all have a certain level of creativity in us. Many people who don’t feel they’re very “creative” have never really had to develop that side of themselves, but…it can be done. Decide right now if you’re going to be a creative person or not.

“The First Step Is The Hardest to Take”

If you’ve made up your mind that you are going to be creative, Meg suggests, taking your craft, starting at the bottom & working your way up. If you crochet learn how to make a chain stitch, then learn a single crochet stitch, & then a double crochet stitch. Start with making a hat, then a scarf, then a blanket. Eventually you’ll have learned enough stitches & other “need-to-know” techniques that you’ll be making clothing & home décor items in no time.

She also reminds us not to be perfectionists. Your initial products are not going to turn out perfect or even necessarily the way you want them to the first time around. Again, it takes time, tweaking, & practice.

When would you say you became optimistic about your craft? Optimistic enough to feel confident in making & selling it to others, that is.

Craft Time

We all have things going on in our lives that take up our time. Jobs, family, “me time”, friends, social gatherings, etc. Anytime you add something else, like a new hobby, into the mix it’s going to take away from what you’ve already got going on. The key is to adjust, prioritize, schedule, balance, or whatever else you want to call it.

Meg suggests that if you’re having trouble coming up with “craft time” among your already busy schedule, to keep a time journal for the week. Write down the time you start & stop everything you do. After a week look over it & you should be able to see where you can adjust your schedule or squeeze in some crafting time here & there.

She also suggests setting a set number of hours for crafting a week. Preferably uninterrupted, quiet time when you are feeling most energetic. She suggests you sticking with this time commitment until it becomes a habit. Now, realistically speaking, at least for myself, this doesn’t always happen. For the most part it does, but with little kids in the mix energy isn’t always readily available, nor is quiet, uninterrupted time. But, of course, you can only strive to do the best you can, right?

Oh yeah, one more thing while we’re on the subject of scheduled craft times. She suggests you have some goals that you’re going to meet each time you set down to work. Without goals, you’ll most likely procrastinate & begin surfing around on Facebook or watching silly YouTube videos. I’m not talking about myself, of course!

Do you have a set time to “craft” daily? If so, are you consistent with it & do you set goals to accomplish each time?

Room With A Muse

Most creative businesses start up in our own homes. Most likely it starts with dragging out your supplies to the couch, kitchen table, or your bed, but eventually you’re going to need a “space” that you can go to get your work done. Not only a place to house all of your supplies, but a place to be inspired. Ideally this place would be set away from other distractions as well.

Meg suggests that wherever you craft space ends up being, that you decorate it so that it’s exciting & energizing to you. You come & you’re ready to get to work. Turn on the lights, get your favorite music going, & let the inspiration flow!

My favorite part of this section was the 11 tips she gives to keep your space inspired. The one that stood out to me the most was the first: Make your space a reflection of yourself, whether that means being colorful or minimalist.

Do you have a dedicated “craft space” & if so, how do you keep it inspiring?

Sharing Your Dream

Meg suggests that it’s a good idea to be careful of who you share your ambitions & goals with. Keep yourself surrounded by positive people or those that are likeminded that will encourage you. Share your creative business with the naysayers & pessimists once you have some proof that your hard work is paying off.

Joining other local crafters for craft parties or even joining an online membership site {like this one – affiliate link – uuhhmmm} can help you with turning your dream into a reality!

Have you experienced negative responses from people once you told them about your creative business? If so, how did you handle it?

Yay for Chapter 1 – Your Creative Mind!

What a lot of great information to build upon, especially if you’re at the beginning stages of your business. It’s also great to look back over for those of you who’ve been in business for a while to see if you’re on the right track too.

Please share your thoughts about his chapter in the comments below. What stood out to you most? What areas do you struggle with? Is there any part that you like to add to? Feel free to share your answers to the questions throughout the post too & to comment on other peoples posts.

Remember, we’re all here to discuss this chapter & to help each other out! Oh yeah! Don’t forget to read Chapter 2 – Your Business Mind – for next week!