Visit website, click here...

Sell your crafts using the techniques in this eBook.

Visit newidea website, click here...

Related Information

Budgeting Advice for New Craft Businesses by Eileen Bergen

Budgeting Advice for New Craft Businesses BY: Eileen Bergen www.theartfulcrafter.com

Every crafter or, for that matter, every business person must learn to control spending from the very onset of the venture. As a matter of fact, you should not even be in business unless you have drawn up at least a simple business plan and budget.

Your budget should be grounded in reality and subject to change as circumstances require. In other words, if you income came in 20% below your projections, expenses will have to be cut to make up for the hopefully temporary shortfall.

One serious mistake a small business person makes in a situation like this is to assume that s/he will make up the income shortfall and continue the spending side of the budget without any adjustments.

Most small businesses are undercapitalized to begin with, so it really pays to be conservative. I have always tried to make sure that a craft is making enough money to pay for itself before stocking up on more supplies or new equipment. I try to get a substantial down payment if

an order would require that I increase my raw material inventory. Everything that I do must be self-supporting.

Do some research if you plan to add a new type of craft to sell. Try to determine if there is a market and if it looks profitable. Again be conservative in your assumptions and start out slowly.

Of course, not everything works as planned. On several occasions, a craft I thought would sell well didn't. But because I didn't go too far out on a limb buying inventory, the loss was always minimal. If you're lucky you can even recycle the materials into some other project.

As time passes, you will learn what works and what doesn't. As you gain this knowledge, you should be making adjustments to your budget to reflect reality.

This is made much easier by careful record keeping. You can use a simple spreadsheet or a small business software package. You can even use paper and pencil if you can't afford the software.

If you track the cost of your materials, the costs of marketing your products and the actual income you receive, you will know if your budget is on track, if you can afford the new tool you want or if you should stock up on more inventory. You will also be able to decide if you should branch out or change direction.

The bottom line is that you cannot afford to throw money at your business. You must try to work around obstacles in a cost efficient manner. While your budget may reflect a short period of losses at the very beginning, losses cannot be allowed to go on unchecked.

Careful, consistent tracking and a dynamic budget, one that reflects reality, should be major tools that you use constantly in your decision making processes.

If you use them, you should be able to avoid the fate most small businesses face today - failure.

For more articles on the business of crafting and how to get started selling your crafts, please visit The Artful Crafter - Your Craft Business Guide.

BY: Eileen Bergen The Artful Crafter www.theartfulcrafter.com

About the Author

Ms Bergen has had a varied career, first as a special education teacher and then, after geting a MBA degree, as a vice president for a major insurance company. For the last eight years, she has been making and selling crafts.

The Business Side of Craft Shows by Natalie Goyette

The Business side of Craft Shows

Starting a craft show business when you're really an artist at heart may be a rude awakening for you. Nevertheless, if you decide to turn your hobby into a business, you need to switch hats from time to time. You wear your artist hat when creating and producing your crafts, and you put on your businessperson's hat when you're running the business end. Begin successful on the craft show circuit doesn't just mean you have a great product; it also means you have a decent head for business.

Planning your craft show business

It's not absolutely essential to write a craft show business plan if you're not seeking a loan or partner, however, it can help you focus your business goals from the start. There are numerous books and Web sites on how to write a business plan, and most will fit with craft shows just fine. The most crucial elements are the financial projections--which include your estimated income and expense for the next several years--and the marketing plan. The marketing plan helps you identify your target audience and how you can best find and serve them. This is essential as you develop your craft show product and find the right shows at which to sell. If you are seeking capital or a partner, you will probably need a complete business plan. If doing this overwhelms you, contact your local Small Business Administration, Small Business Development Center, Chamber of Commerce or local universities to find help with developing a professional business plan for your craft show company. At this point, you may also seek the advice of an attorney to decide what business entity yours will be--a sole proprietorship, a partnership, a limited liability company or a corporation. You can always grow into corporate status later on, though it's advisable to at least know your options up front.

Licensing your craft show business

Most cities require any business, home-based or otherwise, to register and purchase a business license. These range in cost from $15 to $100 depending on the size of your city and are obtained from the city clerk's office in most cases. It makes your craft show company official and enables you to conduct business legally. Find out if your city requires any special-use permits for operating a home-based business. The rules may differ if you have customers, supply trucks or employees coming to your location.

You may also need to file a fictitious name statement with your county offices if you call yourself anything other than your name, such as Posh Pottery. This guarantees that nobody else in your county is using the same business name. From here your file the name with a newspaper, and then you can open your business checking account. It's highly advisable to keep craft show business income and expenses separate from personal if you are serious about being in business. Then on a regular basis, you can "pay" yourself from your business account. You can also now file your taxes as a business entity and take advantage of the many tax exemptions for businesses. Car expenses or mileage, supplies, overhead costs and more are all deductible. Find a copy of a schedule C (www.irs.gov) to see some of the expenses you can write off.

Now you have officially moved out of the hobby status and in to the serious craft show business. Actually the IRS considers your enterprise a hobby if you haven't made a profit in two out of five years that you file as a business. If that happens, it's time to rethink taking your goods to craft shows as a business venture.

You will probably need to get a resale (sales tax) license. This allows you to buy wholesale anything you will be reselling and not pay taxes, however, you need to charge tax on your crafts and then submit it to the tax board either monthly, quarterly or annually. Check with your local state board of equalization or state office of taxation to find out what their rules are. It doesn't cost anything to get a resale license.

It's helpful when starting out to set aside a savings account for your sales tax to be sure you have it when it comes due. Also check with your sales tax office if you are required to collect tax when you're selling in other states. Some show promoters collect tax from you at the end of the show, so you need to keep accurate records, which you can do by issuing a receipt with every customer purchase. Make sure you find out the amount of tax you need to charge at the show as it varies by city, county and state. Also, it's a good idea to carry your sales tax permit everywhere--you may need to pick up some supplies, and you can avoid having to pay taxes on them.

Each city, county and state has different regulations regarding licensing, so make some phone calls to find out what's required, and do this well before your first craft show.

About the Author

Natalie Goyette shows you how to make your craft show business profitable in her best selling ebook: Craft Show Success Secrets. Visit her site: http://www.craftshowsuccess.com

Starting a Home Craft Business: Cashing in on your Artistic and Creative Skills! by Randy Wilson

How can one forget the craft classes at school? You must have enjoyed putting together colorful pieces of paper and varied craft stuffs to give form to dolls, teddy bears, boats, aero planes, flowers and so on. Have you ever considered making innovative and attractive crafts could earn you a profitable and stable income? And you could work at home without having to set up any office or shop to sell your craft items.

You can set up a craft workshop at home with you being the boss. If required you can take the help of a few assistants. They could help you out with the various aspects of making craft products.

Does that sound interesting enough? You can surely give it a try! Starting a Home Craft Business is just so simple!

Overall summary of business:

Starting a Craft Business is a perfect idea for a home business. You can create wonderful and visually appealing craft items using your creativity and innovation. So a craft hobby can be converted into a lucrative home-based business. You can freely work in the relaxed environment of your home adjusting the working hours according to your personal preferences.

Now what kind of craft products do you want to sell? Well that depends on your interests and hobbies. What exactly you enjoy making/creating determines the collection of craft items on your sales list.

There are a variety of products you can make such as flower arrangements, jewelry, soft toys, hand embroidered sewn items, clay crafts, wood crafts, paper crafts, stained glass items, scrap craft (craft made out of scraps and thrown away products), leather craft, hand painting, electronic craft, and the list goes on. You can specialize in Japanese craft making styles such as Origami, Ikebana that are just so beautiful and pretty. Your customers will grab them like 'hot cakes!'

Estimated start-up costs:

The initial start up costs for a Home Crafts Business is extremely nominal. The major investment for a start up is in buying all the necessary equipment and accessories that will be needed to create and make the craft products. You do not have to worry about setting up a separate office for starting the home craft business. Any suitable room of your house can be converted into a craft workshop. And an additional space can be allotted to store the finished products ready to be sold. That's not a big problem at all! This business does not need a huge amount of capital. Your start up cost can be as little as $50 dollars.

Financing sources:

You can approach banks, financial institutions, moneylenders and trade associations for financing your Home Crafts Business at the initial setting up stages. However, since start-up costs are so low, you may not need financing at all.

Pricing guidelines:

Price you items low enough to make sales, yet high enough to cover the cost of the materials. A general rule of thumb is to charge twice the amount of the cost. For example: Materials cost $4.50, you charge $9.00. If you plan on selling them at wholesale to retail outlets, you should charge $6.75. You split the profit with the retailer.

Advertising and Marketing Methods and Tips:

Attend Craft Fairs

Bring samples to jewelry stores and gift stores

Build a website to promote your products

Local Newspaper ads

Yellow page advertising

Print pamphlets and brochures

Craft Home Parties

Essential Equipment:

The essential equipment needed to start a home crafts business depends on what kind of craft products will be making. In addition to the basic stationery item such as adhesives, tapes, scissors, craft papers, staples and so on you will need a computer to lookup information, latest designs and ideas, bookkeeping, website building, etc.

Recommended Training, Experience, or Needed Skills:

To start a home based Crafts Business you do not need any special skills, equipment or formal training. There numerous easy to follow instruction manuals available. Guidelines to make crafts and related items are also available on the Internet. Just use your creativity.

Income Potential:

$20,000 to $80,000 depending on the type of craft items you will be selling.

Target Market:

The target market for home made craft items is diverse. With proper marketing techniques you can target almost all kinds of people who love arts and crafts and indulge in collecting such items for themselves or for their friends and relatives. Crafts and related products are also used for decorating purposes at weddings, birthdays, and shower parties; they also serve as gift items. You can also sell your craft pieces to gift shops and craft stores.

Success Tips:

Research your market, watch TV craft shows, go to craft fairs and check out handcrafts in the marketplace.

About the Author

© Copyright Randy Wilson, All Rights Reserved.

Randy has dozens of home based business articles such as Medical Billing Business. You can also sign up for Randy's free newsletter and 8 different FREE e-courses:Profitable Home Business Newsletter.

Making Money Marketing Your Crafts by Natalie Goyette

Your marketing materials are a valuable and necessary part of your craft business. They create a consistent and professional image that causes an initial as well as lasting impression of both you and your craft creation. If you've ever heard the term "branding," you'll understand the need to create a look that is your business identity. You may need to hire a graphic designer to create a logo and typestyle for your business name. Once you have your look, use it everywhere--on your stationery, business cards, brochures, displays, hangtags and anything that has to do with your business.

Most crafters know that their most critical marketing piece is their hangtag or price tag as sometimes, that's all your customer has to remember you or contact you again. A well-designed hangtag can add considerable value to your work. You can use it to describe your craft and its process, how to care for the item, any guarantee you offer and how to contact you. If your crafts do not lend themselves to a sizeable tag, create postcards or brochures to give to customers with all this pertinent information. You may even want to offer a postcard, brochure or well-designed, informative business card to everyone who stops at your booth, whether or not they purchase anything. If you have enough items for a catalog, make sure to have enough catalogs on hand at every show. Just because you don't sell to everyone who stops by, doesn't mean you can't make a future customer out of them. You do that with your marketing materials.

Another common marketing tool is a monthly newsletter--either mailed through e-mail or snail mail--so if you've created one, have sample issues at your booth. In addition to a monthly or even quarterly newsletter, some professional craftspeople mail postcards to past clients with their upcoming show schedule. You can offer a 10% discount on the postcard if they bring it to the next show. That way you can see if the postcards were effective.

Also have a guest book, sign up sheet or entry form (for a drawing) to capture names and e-mail (or snail mail) addresses from as many people as possible. Consider having a portfolio of your work at your booth if you don't have your full line with you.

If you belong to a local craft organization, the benefits of sharing knowledge and maybe even the cost of hiring professional will ease your budget and learning curve as you embark upon the craft business full time. And now that you are indeed in business, you're ready to seek out the right shows...

About the Author

Natalie Goyette is the author of the best-selling e-book 'Craft Show Success.' Her e-book shows you how you can make money selling your own crafts!

Visit newidea website, click here...