How To Start A Craft Business Lesson 5

Many of the suggestions in these blogs are derived from hard, painful experience. I don’t like to see people suffer which is why I wanted to share the best way possible to launch a craft business.  I believe sharing this information will provide the craft arena with even more attractive and creative items which in turn will benefit all the rest of us already out there. Make your beautiful items and join us. We want you. You are not competition—you are an enhancement.

 

Even with these suggestions you will experience highs and lows. Sometimes it’s just plain funny. Sometimes it’s marginally scary. Once a gentleman spent too much time visiting my exhibit and I began getting “the creep vibe.” I don’t know if he was a bonafide creep, but later in the day after closing he followed me--hiding behind trees.  No kidding.  My little cart was loaded too full because I was anxious to leave as fast as I could and it was windy. The wind caught one of my CARDBOARD boxes, bounced it on the ground a few times, and then picked up several of my items and took them away. Far far away. 

 

My stalker shouted, “I’ll get them!”

I shouted back, “NO! I don’t want them.” (I know. Dumb response.)

He started to approach and said, “Well, can you give me a ride to the bus?” (The bus stop was located a few feet away from where my car was parked.)

 

By this time I was closing the car door with my left foot dangling outside the unclosed door while simultaneously depressing the gas pedal with my right foot.  I had literally thrown my things in the back of the car and noticed when I screeched home my rear hatch door hadn’t clicked closed. I was lucky I didn’t lose my entire exhibit on the street. It took an entire day to sort it all out at home. (Never went back for the windblown items.)

 

There were a few people still at the event as I packed my car but not enough for my comfort level. Earlier in the day a vendor sitting next to me pretended to be my friend to dissuade the stalker and engaged me in conversation and glared at the guy as he hung on my display. But my neighbor was not outside when I was loading the car so I was somewhat alone.  That was the last time I used cardboard boxes. I can now load my car faster than my dog eats his dinner. 

 

So watch yourself and keep a watchful eye on your co-vendors in the event they are unaware of trouble. Read people to figure out their intentions. Humans are an unpredictable species. It’s fun to linger with vendors and discuss the day, maybe get some coffee, sit on the backs of the cars and chat, and check out any lingering weirdoes. Funny things happen at these events and it’s great to share while we pack.  But if I have to, I can be gone with the wind.

 

Which brings me to working with customers.  Try to keep a nice even demeanor. Not too friendly (stalker prevention), not too cool (customer prevention). Be there tidying up your display but toward the back. Glance at your customers so they can catch your eye if they need help or have questions. Be relaxed. Try not to “sell.” You don’t have to if you have prepared a proper display that is accessible and pretty. Chat with fellow vendors. Be kind to children even as they go through your display like Great Whites at a surfer competition.

 

One of the most successful strategies I’ve used is the incentive. I offer last year’s items at a discount. I sometimes have a buy-one-get-one-free event. I also will occasionally barter with someone if they want something but just might be a little short on cash. I don’t go crazy on this option but I can tell when someone really wants something but just doesn’t want to spend anymore at the event. These customers come back to future events and look for you!  Place a few useful signs around your display, especially a sign indicating you accept credit cards.

 

Thievery. There. I’ve said it. Yep, it’s there. At one event my neighbor on the right had several jewelry pieces stolen while a group of about 4 or 5 girls surrounded her asking her questions. We didn’t know it at the time but later we determined that was when it happened. There must have been another girl lingering near this group but we didn’t see her. I didn’t realize until I got home that I too was a victim of sticky fingers, possibly from the same girls. 

 

When any large group appears at my exhibit not only do I want to be able to help and answer questions but I also have to deal with payments and credit cards. Sometimes there are several people at once in varying stages of shopping. This is what thieves look for. So since I wear my apron and keep all of my bookkeeping materials with me I can place myself in front of my display and sort of block the comings and goings of people in my area. It’s quite effective. I also have learned how to give the evil eye to suspicious types, i.e., the aforementioned weirdoes.

 

Don’t get me wrong. These instances are rare but be prepared. At events where alcohol is sold you’ll encounter teetering people with balance issues maneuvering the exhibit area. Accidents happen! On the other hand, some of these teetering individuals shop wildly. (heh heh heh)

 

Will you make money? Well, how much do you want to make? If you’re giving up your medical practice, no (although with Medicare and our country’s deplorable medical system, maybe). If you’ve been schlepping yourself to a pink collar job for a hundred years, yes, in time. Key words here: in time. I have talked to dozens of vendors and have learned that it can take 3 to 4 years (sometimes) to make an actual income you can live on. However, you’ll need some high-end items and lots of inventory (and LOTS of events). One team I met eventually dumped both day jobs and enjoy a semi-comfortable livelihood but not to the level of their former actual jobs. Still, they are thrilled to be on their own and they are always on the lookout for new items and new events. They may do multi-state events in the next few years! If you are planning on launching by yourself with no help from anyone, and there are many of us, you can do this by simply planning easy to handle storage pieces and ways to manage your money (and self) while out and about.

 

If you are looking for supplemental income, which is where I am, you can do this. If you are a couple and one member is employed with benefits, the other can launch the crafts. If it goes exceptionally well, hooray! Perhaps you can retire a year or so earlier than you had previously planned. Hooray again! That’s what I did. I retired a bit early to launch my business. But during the slow times I still had my pension.

 

I’d like to wrap this up by stating that I do enjoy this work, but it truly is work. I do not get sick days, vacation days, or company benefits (except the benefit of not going to an employer at the crack of dawn five days a week). In some ways it’s almost like two businesses: the creative part, and the exhibit part. I started a few months before retiring and it was tough. Depending on the complexity of your selected craft item(s) you are working at it constantly. And if you aren’t preparing inventory you are working on your display. If you aren’t doing either of those two tasks you are at an event. And then there’s bookkeeping and record management. 

 

For those of you who have always loved creating gift items for family and friends and think selling them would be fun and lucrative that’s a big “yes” and a big “no.” Knitting socks for grandpa for Christmas is not the same as knitting 50 pairs for a holiday boutique. However, I did not want to supplement my retirement with more of the same work I did prior to retiring. I longed for a creative outlet. I wrote a book a few years ago and that filled a spot in my heart I had been missing my entire life. (Yes, I’m working on another book but money is coming now from crafts whereas it will come much much later with publication. See future blogs on that topic.)

 

If you want that creative itch scratched, you can try a craft business and see if you like it. I’ll probably keep at it until I can’t fit the walker in the back of my car and/or DMV does a “senior” review and revokes my driver’s license.

 

Next blog series—The Book (Part 1). 

www.sharonstrawhandgarner.com

[No part of this content may be reproduced, stored in a retrieval system, or transmitted by any means without the written permission of the author.]

How To Start A Craft Business Lesson 4

The display! The first thing you’ll need is a cart. It will be your best friend. Rubbermaid makes a lightweight cart that folds completely flat for about $75. I find it easier to manage than a standard hand-truck.

 

Your display will vary depending on your items but the tried and true style is the U shape display. You CAN launch yourself with one table and many do. If you make smaller items that may even suffice. You can always add tables as you go along.  The U shape consists of three tables (duh). I purchased aluminum suitcase tables that are 4’ by 6’ and are light and easy to maneuver and to LOAD and UNLOAD and they save space when folded. After the tables are arranged, you should drape each table with a tablecloth. Depending on your items you can also stack each table with shelves. I use two shelves per table. The shelves provide a more “shop” like appearance and customers swing in and feel they are in a small boutique. Shelving and bricks or whatever you like will work. Don’t forget a chair! I take two so that when I have family or friends visit they can sit down. I use the typical folding style chair because they fold almost flat. Remember: you will be lugging everything in and out of your car. More on packing at the end. 

 

Exhibits usually have canopies even for indoor events. The Hall of Flowers at the Sonoma County Fairgrounds is huge and canopies and umbrellas make the exhibits seem more like small shops (it’s all about the comfort of the customer). They are usually white and sometimes organizers accept only white canopies. I haven’t done any with that requirement and it’s a good thing because I have a huge black pendulum style umbrella! It’s beautiful and does not have a center pole and I can manage it by myself. It also folds into a slim “pencil” and slips right in the back of my little car. Most canopies require two people, even the ones that say “so easy you can open it by yourself.” That person would be a linebacker for the 49ers with the arms of Plastic Man. If you don’t remember Plastic Man here’s a link to his photo: www.superherotimes.com/news/images/JLA.Ross.pm.af.all-01.jpg

 

Next, if you do indoor events, you will need lighting. I have six clip-on high intensity lights with a power surger and a long heavy-duty extension cord (packed snuggly in a nice plastic box with a lid). Most indoor events will accommodate your request for lighting if you give them advance notice.

 

Depending on your items you need a few “decorative” display pieces. I have two chrome and black velvet mannequins I use to display shrugs and scarves. I have a few props I take: a baby wearing one of my baby buntings, a Styrofoam “head” to display hats, several baskets, greeting card racks (professional) and at Christmas I brought in a few Christmas decorations. Keep the exhibit neat and tidy at all times. Customers browse and sometimes leave things in disarray.

 

You will also need bags or boxes for your customers to carry off your items. I purchase a variety of bags inexpensively online in bulk. Also consider making or ordering business cards with your contact information. These can also be used for inventory tags. I have a refund policy and an exchange policy. If someone purchases a gift they are uncertain about for a friend, they like knowing they can exchange or return it. Tag each of your items with a price tag and make a pretty “created by Miss Mary” tag with your contact info or attach your business card. All of these items are everywhere at the major stores (even the giant discount stores).

 

You will need some sort of safe storage for your cash/credit card receipts. You must always start your event with a few bills for change and you will receive cash throughout the day. If you use a cash box or something similar you have to watch it like a hawk. You will be distracted frequently and will not be carrying your cash box with you so an apron is handy. (Thievery will be discussed in the next lesson.)

 

Do you want to deal with coins and odd amounts? Not me. My items are dollar values only. I use a black vendor style apron with two pockets. [My umbrella is black, my tablecloths are black, my apron is black, I wear a black hat, my clip-on lights are black, and even my car is black. When I exhibit at an event where I can park my car next to my exhibit it all looks quite cohesive.]  All my cash and credit card receipts go in one pocket and my cell phone, driver’s license, medical card, etc., in the other. I never take a purse. Sometimes you can park your car next to your exhibit but often you are quite a distance away. Keep nothing of value in the car.

 

Speaking of the car, I had a four-door Honda but traded with my daughter for her little Pontiac Vibe mini SUV. It is NOT by any stretch an SUV but it folds down completely flat in the back and half of the front and has storage on the roof (which I haven’t had to use).

 

Whatever car you use, plastic storage containers are the way to go. Cardboard boxes break down with use (I had an unpleasant collapse and some of my items blew away never to be seen again). Cardboard doesn’t handle moisture well and eventually stops stacking properly, and then you end up with a mess. My entire display is now in plastic boxes, many with lids. Everything is clean and easy to stack. Experiment with this suggestion because each car is so different. I’ve seen them all at the events. What I would love to have is a giant van! (That will require a LOT of knitting.)

 

Prepare a checklist of things you’ll need to take to each event. I would be happy to send you a copy of my checklist. I have several copies and each time I pack the car I grab a copy and load the car with the list in hand. You’d be amazed at the things you need when you’re stuck somewhere all day! (Like a hammer, Imodium, scissors, bandages, nail file, something to read, etc. My list is funny but a lifesaver!) I also leave my car semi-packed when I’m doing back-to-back events. I usually bring my craft items in the house to re-inventory and re-pack for the next event, but I try to leave as much of the heavy items as I can in the car. This might not work well if you have a family.  My dog has gotten used to sitting on my folding tables. The hardest part of all of this for me has been loading and unloading then loading and unloading for each event. I love the three- or four-day indoor events. You can leave it all at the event and the events I’ve participated in of that nature have been secure.

 

As you attend events you will find other wonderful ways to display your items. Craft and art exhibitors are a sharing bunch of people. They want you to succeed because if booths are filled with happy customers everyone wins. If you find something wonderful for your display, share it with your neighbors.

 

The next lesson will cover how to actually sell your items: demeanor, bantering with the customers, incentives (buy one, get one half off, putting a few items from last year “on sale,” signs), protection (yep), etc.

 

By the way, at this point you have figured out that it’s costing quite a bit to launch your little business; right? Right! Initially, you can manage with cardboard boxes, you can put off buying lighting until you have an indoor event and even then you can put it off, etc. However, the more attractive your display the more likely you will attract customers. Inventory, display items, and event fees add up. If you launch properly, you will get sales. If this isn’t the time to launch, start a savings and try in a few months or a year. 

www.sharonstrawhandgarner.com 

[No part of this content may be reproduced, stored in a retrieval system, or transmitted by any means without the written permission of the author.]

How To Start A Craft Business Lesson 3

Now it’s time to select two or three “starter” events. Sounds like I’m putting the cart before the horse again, booking an event before you’ve prepared a display, but events usually require booking in advance and some organizers only select vendors four times a year. My first event was inadequate and didn’t give me a “feel” for what was to come.  Booking a “good” event will launch you properly and will be quite the learning experience. I will explain displays in Lesson 4.

 

Most events charge a fee. There are a few free events but they are often community service events and people are visiting for service information and consultation and are not interested in shopping. Though those events can be fun, I’m not in it for fun. Getting up at the crack of dawn, loading the caR, driving to the event, unloading the car, sitting all day in whatever weather comes your way, without sales, Loading the car at the end of the day, driving home with empty pockets, and--unloading the car--is not my idea of fun—unless I had a profitable day. And you don’t learn anything at a free event (except that you’ll never do free events again).

 

Some events charge a processing fee for the year but also charge a per-event fee.  The larger the event, the more customers, the higher the fees. Some events require that you submit a hefty application packet with photos and application fees and processing fees and diagrams and proof of insurance and your driver’s license and seller’s permit, etc. (and they may not select you;  these are called juried events). Some require liability insurance, but some provide the insurance, which you purchase from them for their event only. This year I’m purchasing liability insurance and my insurance carrier estimates it’s about $350 for the year.

 

*****BEWARE*****  Events come in all shapes and sizes. Some are small and well run and others are large and horrible. By visiting events you can tell which ones you would like to try. With the amount of work I put into developing my items and the amount of time AND MONEY I’ve put into an attractive exhibit, I am now extremely picky about selecting events. Last year I participated in 17 events (some multi-day) and I hope to double that this year. Of the 17 events there were several I will not do ever again. (Don’t ask, I won’t tell.) It isn’t the sales, good or bad, it’s the organization and appearance of the event that is important.  I tried one flea market that was beautifully organized, clean, friendly, and there were many customers. I sold one item. It was not the flea market’s fault. It was mine. My items and display are not suited for a flea market.  What I’ve learned most of all is: know where you belong. (Sort of sounds like a life lesson too I suppose.)

 

I currently check online for events, receive emails from other exhibitors I’ve met, and I joined an event website for an annual fee. This website lists hundreds (maybe thousands) of events. Each listing is masterfully detailed. (Festival Network Online also known as FNO.) There are many others and you probably know what’s going on in your own community so start with those events.  Here are some useful tips:

*The longer an event has been running, the better organized and it usually has a faithful customer base (but not always).

 

*Location, location, location. If the lovely event is in Outer Mongolia but looks great, skip it. Many customers are not willing to drive to Outer Mongolia.  Communities with a decent sized population have customers who are willing to drive around all day hitting the local farmers markets and craft fairs and festivals.  Communities that cater to tourists are great. If the event in Outer Mongolia has a large tourist business, that would be an exception to my no Outer Mongolia events (but not always).

 

Speaking of festivals, be careful. Many organizers call their events “festivals” but they are not. If you are invited to participate in a “festival” and you are restricted to one table, run. Unless I can bring my entire display I no longer will exhibit at events that restrict what I can bring. It’s too much work, I’ve put too much money into my little business, and like I said before, I’m not in it for fun (always).

 

Some farmers markets accept craft exhibits. The customers for those events are up and out the door early purchasing produce and love to be outdoors and stroll and enjoy looking at all the crafts.  Farmers are great to work with and you’ll be able to purchase a nice bag of fresh produce for your family at the end of the day.  These markets are my favorite places to work (always).

 

Holiday events are tremendous. Everyone wants unique gifts for family and friends. These events are great for selling your higher end crafts. It’s March and I’ve already started preparing for Christmas. These events are fun as well as profitable. Everyone is in good spirits (but not always).  

 

Take some time to research events and visit as many as you can find. Once you have lined up a few events you’d like to try, you now need a display. (See you next Sunday!) 

www.sharonstrawhandgarner.com

[No part of this content may be reproduced, stored in a retrieval system, or transmitted by any means without the written permission of the author.]

How To Start A Craft Business Lesson 2

Seems like creating inventory BEFORE setting up your business is putting the cart before the horse, but it’s not. Inventory in sufficient quantities is the most important part of a craft business. Once you find your first event you’ll have so much to do just getting there that the last thing to worry about is inventory.  Why?

Many events require that you remain at your booth whether or not you’re sold out (or just having a bad day). If the event has 60 booths and the customers are happily strolling down the trail--and half the booths start shutting down--customers flee. It’s all about a well-organized cohesive event. That’s why you need a large inventory. 

Be organized. I send myself emails from my Blackberry when I’m out and about and at events to remind myself to do things. I also take photos of other exhibits to remember clever displays. Whatever system you currently use to manage your financial life, if it works for you now, use that. Keep it simple but record everything. I have a spreadsheet where I record equipment purchases, losses, fees, taxes, etc. If you would like a copy, email me.

California requires a Seller’s Permit. I’ve included a link to the State’s application. http://www.boe.ca.gov/pdf/boe400spa.pdf (If you can’t open the link, cut/paste into your browser.) You cannot submit the form online but after completing the application mail it in or actually take it to a field office. If you go to the field office you’ll get the permit on the spot. There is a small fee but because so much has changed in California due to the economy, I don’t know the cost at this time.  (If you’re planning on multi-state events, you’ll have lots of homework.)

You must then report sales tax you collect throughout the year. The state will send you a form annually and you can file online or by mail.  It’s much easier to do this online if you exhibit in many cities. The website lists all the tax rates for each city and you simply type in the total amount you sold in a given city and the tax is calculated for you. If you exhibit in many cities, you need to make sure you are collecting the correct sales tax for the city you are selling in.  

For each city where you exhibit you will need a Business Tax Certificate (formerly and more commonly known as a Business License). In reality, it’s not a license at all and never has been. It’s a tax. All of the cities and towns have their own forms and it’s okay to wait until you actually exhibit in a given city.

Next, credit cards. Finding a credit card merchant account was not easy. I’m currently semi-happy with my merchant account but I may look elsewhere as my business increases. I don’t have access to my account at events. Customers are required to complete a short form I provide, which they do not like, and then I must come home at the end of the day and process my payments on the phone with a terminal my credit card company provided. It’s not bad but I’d like to get it processed via my cell phone while I’m actually accepting the payment.  Once the payment goes through I shred the forms but customers still don’t like that (I don’t blame them).  Many exhibitors use their cell phones and it seems to be a more efficient method. Try going to your bank first to see what they offer. About half of my sales are credit card sales so it’s an important tool.

Consider setting up a website and put your web address on all your inventory tags. It’s a great way to keep in touch with customers and announce where you will be exhibiting and post your new items as you create them. The list of website providers is staggering. (I use MySite.com) You can spend hours just finding the right website. Some are expensive, some are reasonable, or you can even use one of the free social networking sites. I have a Facebook account and I link it to my official “professional” website.

I don’t accept payments on my website because I’m the only one making my crafts.  If I received orders with an embedded online payment form I wouldn’t be able to keep up with the creating part. Sometimes it’s hard enough to just keep the inventory going from event to event. When someone sees something online or has purchased something from me at an event, they must contact me via my website and we do email orders and I can manage that. Having an online payment system embedded on your website can create credit card compliance issues and nasty fees. It would be better to set up PayPal or a similar service but--if you get 20 or so orders a day, could you fill those orders in a timely manner? Event sales are much easier to control. I’m happy to report that I have repeat sales from people who like my items and they visit my site to see what’s new.          

Next--selecting events and setting up your display. 

www.sharonstrawhandgarner.com 

[No part of this content may be reproduced, stored in a retrieval system, or transmitted by any means without the written permission of the author.]

How To Start A Craft Business Lesson 1

Occasionally I receive emails asking, "How do I write/publish a book" and "How do I start a craft business." Over the next few weeks/months I will offer suggestions and advice on how to do both--but not at the same time.  Because the 2009 craft season will swing into full gear very soon (and in some areas it has started already or has never stopped), I would like to help those interested in a craft business first.  Though I'm an avid blog reader, this is my first attempt at blogging and I'm not certain how I want it to look and what features are available to me to enhance my page. This will be a work in progress! And so we begin.

 

First, of course, you must choose your "line." What are you planning on creating for craft fairs, festivals, farmers markets, etc.? I learned early on that you need a fairly large inventory to participate in decent events. Decent events will be discussed later. (Not all events are created equal.)

  

Next, if you are planning on actually making money, you need to work your little fingers to the bone to prepare a sufficient quantity of items to sell to actually pay the event fee and to cover the supplies you purchased and, hopefully, make a little profit.  So, before you purchase exhibit items or book an event, start creating. If you work full time, this can be challenging! After you purchase supplies to make your first item, having hopefully purchased everything on sale, time yourself to see how long it takes to make the item. If it takes all day or evening to make one item, you might be creating more of a fine art piece usually exhibited at different events than the craft events (usually--but sometimes they are combined).

 

Next, factor in what your supplies cost and try to come up with a reasonable sales price. I say "reasonable" because craft business failures often result from overpricing items. Though you put your blood, sweat and tears into your beloved crafts, your customers generally want a bargain. Crafts are priced lower than fine art items for the most part and people who shop at craft events are looking for clever items, but at a comfortable price.

  

So before you do another thing in creating your business, select your craft wisely. (It’s a good idea to visit events and see what’s out there.) If possible, create more than one type of item to make and sell. I currently sell a variety of knitted items (baby hats, baby buntings, adult hats and scarves, shrugs, silk flower and candle arrangements, greeting cards, placemats with matching napkins and rings, and I've started decorative boxes and gift bags.) If you stick to one craft item you can still do a great business, but you will notice some people simply walk right by your exhibit without stopping to look at your items. If you have a display with many different items (and prices) they will stop long enough to look and that's generally all you need to make a sale. I started with only knitted items and quickly added other items and noticed the difference in customer traffic immediately.

 

Wrapping up this first lesson, pick your craft item(s) and get started. Keep track of your inventory, your time, and your expenses. The next lesson will be how to set up your business and what you need for your display. This will be based on the fact that you have created dozens of lovely things to sell at your first event. Get busy!  

www.sharonstrawhandgarner.com

[No part of this content may be reproduced, stored in a retrieval system, or transmitted by any means without the written permission of the author.]