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
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