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Do you want to start a craft business? Congratulations! I’m excited for you!
Did you know that Bloomberg estimates that 8 out of 10 entrepreneurs that start a business fail in the first 18 months?
I promise I am not here to ‘rain on your parade’, but there are a few things to consider before you start a craft business. Read on for my quick list.
What to Ask Yourself Before You Start a Craft Business
1) Do I really know how to use my machine and troubleshoot problems that might come up?
Unfortunately, I see this all the time. A new Silhouette or Cricut owner gets their machine, makes a thing or two and a friend asks them to make a product for them – and they will pay for it! Suddenly, the new machine owner is ready to set up shop. Then, the new machine owner runs into a problem with their machine that they don’t know how to fix – or commits to create an item for a customer that they don’t have the experience to make. The problems and frustrations just start snowballing from there, and the business never gets going. So, please, get to know your machine well before going into business.
2) Do I have enough money to pay for start up costs?
Starting a business costs money. Make sure you have ample funding for items you’ll need including: Supplies, advertising materials, packaging materials, website registration, logo design, and website hosting. Here’s a list of common start up expenses.
3) Do I have the time to invest in a business?
Have you considered when you will create items? Ask yourself these questions: Are you available during the day to make items? Will you be working a part time or full time job and creating in your free time? Do you have small children and will be creating items when they are sleeping? Do you usually spend time with a significant other in the time that you will now be creating products? How will your significant other feel about you using this time for something else? Don’t forget, in addition to creating items – you’ll also need time to advertise yourself, complete paperwork, answer customer questions, photograph and list items (if selling online), and ship the finished items.
4) Do I have space to store my supplies and work?
Where will you create? Is there space in your garage, basement, office, kitchen table? Where will you keep your supplies? Need some creative storage solutions? Check our these tips.
5) Is there a demand for the types of products I want to sell?
Let’s take an example: I’m starting a new business and I mainly make personalized tumbler cups and cutting boards. I’ve made several personalized tumbler cups locally and landed a large order with a local cheer team. But, I also plan to sell online through Etsy. After researching online, I’ve found that there are eight other local cheer teams that I plan to contact about personalized tumbler team orders. When I typed “personalized tumbler” and “vinyl cutting board” into Etsy, I found over 14,000 personalized tumblers already listed, but only about 1000 personalized cutting boards and many were a style that I don’t create. Based on my quick research, I’m likely to get more sales if I promote personalized tumbler cups locally and focus on personalized cutting board designs on Etsy.
6) Do I enjoy working with people?
In my opinion, customer service is what keeps small businesses running. Customers expect prompt, courteous communication on everything from getting details for a custom order to handling a lost package. Expect to dedicate time each day to handling customer inquiries and problems that arise.
Honestly, if you can’t answer “YES!” to each of these questions before you start a craft business, you either are not quite ready to start right now or starting a craft business isn’t for you.