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Crafts Business

 

Turn your favorite hobby into a fun, moneymaking business.

Turn your favorite hobby into a fun, moneymaking business.

ENT - 1304 - $85.00  (print version)

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 Also available as a downloadable e-book for $65.00

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Product Description

If you're creative and enjoy working with your hands, a crafts business could be your path to financial independence. With a minimal investment, you can start grossing up to $100,000 a year doing something you love.

This guide starts with an overview of the industry, looks at some specific crafts businesses, and then walks you through the step-by-step process of setting up and running your new venture. You learn about basic requirements and startup costs, daily operations, and what to do when things don’t go according to plan. You gain a solid understanding of the sales and marketing process, as well as how to track and manage the financial side of your business. Throughout the guide, you hear from crafters who have built successful operations and are eager to share what they learned in the process.

This guide makes a great homebased business.

Click Here to Download Chapter One

 

Table of Contents
 

Chapter 1: Making It Yourself

  • What Is A Craft?

  • In The Beginning

    Chapter 2: Taking The First Steps
     

  • What Does It Take?

  • Put It In Writing

  • Turning Pro

    Chapter 3: Identifying The People Who Will Buy From You
     

  • Retail Market

  • Wholesale Market

  • Identifying Your Market

  • Are You On A Mission?

  • Artist’s Statement

    Chapter 4: Structuring Your Business
     

  • Naming Your Company

  • Trademarks And Copyrights

  • Choosing A Legal Structure

  • Licenses And Permits

  • Sales Tax Number

  • Business Insurance

  • Professional Advisors

  • Shipping And Receiving

    Chapter 5: Keeping The Cash Flowing
     

  • Sources Of Start-Up Funds

  • Pricing Your Handcrafted Items

  • Doing The Calculations

  • What Crafters Charge

    Chapter 6: Locating And Setting Up
     

  • Working From Home

  • Retail Store Space

  • Carts And Kiosks

  • Freestanding Buildings

  • Choosing A Location

  • Commerical Leases

  • Negotiating The Lease

  • Buying An Existing Operation

  • Crafts Shows And Fairs

  • Choosing A Show

  • Your Booth

  • Packing For A Crafts Show

  • Booth Behavior

  • Crafts Malls

  • Facility Design

  • Health And Safety

  • Security

  • Theft At Shows

    Chapter 7: Staffing Your Business
     

  • Recruiting

  • Screening

  • Interviewing And Evaluating

  • Once They’re On Board

  • Employee Benefits

    Chapter 8: Equipping Your Business
     

  • Craft-Making Equipment

  • Basic Office Equipment

  • Telecommunications

  • Other Equipment

  • Office Supplies

  • Inventory

  • Tracking Inventory

  • Buying Resources

  • Vehicle

    Chapter 9: Marketing Your Business
     

  • Defining Your Product And Image

  • Targeting Your Market

  • Advertising

  • Consignment Sales

  • Using Sales Representatives

  • Selling On The Internet

  • Repeat Business

    Chapter 10: Day-To-Day Dollars And Good Sense
     

  • Billing

  • Setting Credit Policies

  • Check And Re-Check

  • Checking Out Checks

  • Accepting Cards

  • Your Own Creditors

  • Taxing Mat Ters

    Chapter 11: Tales From The Trenches
     

  • Never Stop Learning

  • Listen To Your Customers

  • Note Fashion Trends

  • Plan Shows Carefully

  • Share Booths With Caution

  • Avoid Reducing Prices

  • Learn To Say No

  • Practice Packing

  • Change Your Products

  • Change Your Strategy

  • Make It A Family Affair

  • Accept Time Constraints

  • Walk Before You Run

  • Do It For Yourself

  •  

  • Glossary
     

  • Appendix
     

  • Index



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    Book Excerpt
     

    Chapter1

    Assembly lines around the world are churning out mass-produced items that are purchased almost as fast as they can be made. But consumer acceptance of low-cost look-alike goods hasn’t eliminated the demand for handcrafted items—although those items are likely to have a much different function today than in the past.

    Many handcrafted items are now valued as works of art, but historically their value was primarily utilitarian. For example, baskets and pottery were essential for transporting food, water and other items. And weaving produced fabrics that could be made into clothing and blankets.

    Because of the industrial revolution, the need for functional handcrafted items is not as extensive as it once was. But Americans who want quality artistic and decorative items turn to modern-day craftspeople who produce a variety of items such as jewelry, ceramics, wood carvings, furniture, crocheted and knitted goods, decorated clothing, toys and much more.

    What Is A Craft?

    In this book, craft refers to any handmade item that can be given as a gift or sold—and if you’ve attended a crafts fair, you may have been surprised by what craftspeople sell and what people are willing to buy. The unpredictability of the crafts market is one of the intriguing and challenging aspects of the business.

    In Craft Today: Poetry of the Physical, Paul J. Smith writes, “In its broadest sense craft refers to the creation of original objects through an artist’s disciplined manipulation of material. Historically craft was identified with producing objects that were necessary to life. Modern industrialized society eliminates the need to make by hand essentials for living. The term craft now must be defined in the context of a society that focuses on greater efficiency by technological achievement.”

    The question of whether crafts are art or a separate medium may never be definitively answered. In The Crafts of the Modern World, Rose Slivka writes, “Throughout their long history, crafts have produced useful objects which are later considered fine art. Time has a way of overwhelming the functional value of an object that outlives the men who made and used it, with the power of its own objective presence—that life-invest quality of being that transcends and energizes. When this happens, such objects are forever honored for their own sakes—they are art.”

    Of course, for someone wanting to start a crafts business, the question of whether the products are art may not be particularly important. A more critical question is whether you can make money.

    The nature of the crafts industry makes it difficult to define and quantify, but industry experts estimate that sales revenues exceed $10 billion annually, and hundreds of thousands of working artisans earn their entire income from the crafts they produce. Most professional craftspeople start making their handcrafted goods as a hobby, and begin selling items to friends and family. From there, they typically expand to selling in crafts shows and fairs several times a year. Sometimes they’re content to keep this as something they do on the side; others are eager to move from part-time to full-time status. Still other artisans tackle their work as a full-time career from the beginning, often renting studio or retail space, or both.

    Start-up costs for a crafts business range from literally a few dollars to several thousand dollars, depending on what you are making, what type of equipment and raw materials you need, and whether you already own equipment when you start. Crafters earn as little as a few dollars an hour (for part-time crafters who are not particularly interested in profits) to as much as $20 or $30 an hour and sometimes more if they learn how to market and manage their businesses efficiently.

    In The Beginning

    Let’s take a look at how some established craftspeople got started: Jay Norman of DeLand, Florida, who makes containers for his business, Organize With Wood, was a dance teacher who had worked with wood as a hobby all his life. He says his wife, Dianne, turned him into a professional craftsperson. “His items were so clever and unusual, I thought he could sell them,” she recalls. So Jay and Dianne quit their jobs in New York in 1997, moved to DeLand, Florida, and now sell virtually year-round at crafts shows around the country.

    Judy Infinger of Altamonte Springs, Florida, makes wood and fabric decorative items, primarily with a Christmas theme, for her part-time business, Woods and Threads, which she started back in 1988. “I just do, fall shows, so I concentrate on Christmas items—ornaments, pins, that sort of thing—which are my favorite, anyway,” she says. She builds her inventory throughout the year, then sells at shows during the autumn crafts show season.

    Deborah Farish, owner of Dolls by Deb of Manchester, Missouri, makes soft-sculptured dolls as a part-time business and works full time as an administrative assistant in an accounting firm. She’s been sewing since she was 12. “I would go to crafts shows, look at dolls, and think, ‘I can do that’—which is what everybody says when they go to a crafts show,” she says. Finally, in 1993, she bought some fabric, made a doll she took into her office as a sample, and began getting orders. With the encouragement of friends and customers, she built an inventory and began exhibiting at crafts shows. Gladys Johnson of Bunn, North Carolina, was looking for a hobby when a friend of hers invited her to a doll-making class. “After doing my first doll, I was hooked,” she says. Still, in the beginning, she had no intention of turning her hobby into the business she named Dolls by Gladys. But in 1995 “it got to the point where I had to get rid of some of the dolls so I could make more,” she explains. She makes porcelain dolls, most with cloth bodies (although she has made some with porcelain bodies).

    Lynn Korff, owner of Korff’s Ceramic Originals in Cabot, Pennsylvania, had been making ceramics for about six years when she opened her own studio and shop where she made ceramics, held classes and sold supplies. Eleven years later, she decided to downsize: She closed the shop, moved her business home and set up a Web site in 1999 to sell her crafts. Her primary product is piggy banks, but she also makes and custom paints other ceramic items, such as dinnerware, flower pots, candle holders, serving dishes and specialty plates.

    A love of candles prompted Melony Bell of Fort Meade, Florida, to start making them as a hobby. She wasn’t satisfied with the quality of candles available in stores. Her husband is a beekeeper, so she started using his beeswax to make her own candles. After she gave a few as gifts, people started asking if they could buy her candles. So, in 1998 with a full-time job as an auditor with the Florida Division of Motor Vehicles and serving as city commissioner/mayor for her town, she started her own candle-making company.

    Anita Fetter of Waynesfield, Ohio, has been making and selling wood and fabric crafts since 1980. She started working with her husband, who made wood items that she painted or stained; she also did cross-stitch, knitted and made stuffed animals. But as their hobby turned into a business, her husband backed out of it. “He stopped when it got to be a job,” she says. “Now I do most of it and just make things for the fall and winter.”

    What these crafters and many others have found is that while selling their handcrafted goods is often fairly easy, the challenge is making a profit. You need to decide what to make, determine if there is a sufficient market for that item, then figure out if you have the wherewithal to reach that market. Just because your family members appreciate your handmade gifts and your co-workers are willing to buy modestly priced items from you doesn’t necessarily mean you can sell enough of them at a price that will justify your investment of materials and time. On the other hand, friends and family may be just the proverbial tip of the iceberg, and you may have a product that will become the foundation for a thriving company.

    Beyond that is the issue of running a business. Just because you love doing a particular craft doesn’t mean you’ll love doing all the things that go with running a crafts business. Of course, you don’t have to love them, but you do have to do them.

     

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