We all make mistakes, especially in the craft world. It’s part of growing, learning, and being human. We are not perfect and will never be perfect. That is why the fear of erring can be huge and sometimes keep you from doing what you want. I will share with you the Mistakes That Keep You From Being The Craft Business You Love.
Sometimes, the most powerful weapon against failure is knowing what NOT to do before you begin. When talking about a crafting business, some mistakes are made repeatedly that can stop your small business before it even starts.
Setting Your Prices Too Low
When starting a craft business, the beginner seller often prices their product too low in the expectancies of selling it faster, thinking that this will ensure success. Unfortunately, this hurts the business. You end up working more to sell your product for a smaller profit.
Ensure your pricing includes your materials and labor because you want to make money. This is your business, and you should expect to be paid for your time.
To learn more about pricing your products, check out my post on What Every Crafter Ought To Know About Pricing Handmade Products.
Failing To Plan Is Planning To Fail
Creating your business plan is one of the most essential steps in starting any craft business. You should have a solid business plan to refer to at all times. That is why, in my 5-day online course Launch Your Dream Business, I show you the exact steps to take to set up your business plan.
As your business grows, there will be times when your business plan needs to be modified, so prepare for this. You may hit on a fantastic product that sells like wildfire, and you must adapt to meet your market and customers. Always look at your business plan, and do so often. That way, you can make changes as needed according to your needs.
Taking On Too Much At The Start
Trying to do it all at the start of your business is often a mistake many beginning crafters make.
Think about what shows you plan to attend and the costs associated with being at those shows, along with pricing supplies and your marketing materials. When you think these things through and write them down before you start selling, you will be more apt to stay on track and less likely to over-extend yourself throughout the course of a year.
Investing More Than You Have
Many will borrow thousands of dollars in anticipation of being able to pay it back quickly. This rarely happens, so keep your initial investment low and grow as your business does.
It might seem like an excellent investment to buy top-quality equipment, but it can break your business when loan payments come due.
On the same note, start selling your crafts at local craft shows and move your way up to the top-rated shows. Local craft fairs will have more reasonable booth fees and increase your profit. Once you’ve succeeded in a local market, you can look at the bigger shows.
When preparing for a craft fair, choosing where you’ll go is essential and involves specific criteria. Learn how to select the best craft fair for your market with my article on How To Choose The Best Craft Fair For Your Market.
Not Having A Budget
Budgets are not high on anyone’s list of “fun things to do.” I know it’s not on mine, mainly because they can be constraining and challenging to follow. Because many people hate to try to put a budget together, they don’t.
A budget is not some detailed financial statement that takes days to write. It’s simply a way for you to tell your money what to do instead of your money telling you what it will do.
At the end of each month, plan next month’s budget based on your performance. Start with minimum expenses, which you must have to function, like show fees, supplies, etc. Then work your way down the list of things you would like to do if you make enough money.
Don’t Take It Personally
Some people will like your product, and some people won’t. It’s just a fact. There are all types of people out there, too. Not everyone will be friendly when looking through your products.
Unfortunately, there are disagreeable people in the world, and many of them like to practice their offensive skills toward crafters. It would be best if you didn’t take any negative comments personally. To put it plainly, ignore them!
If these people had the creativity, skills, and dedication you do, they would be at home making their own crafts instead of making rude comments. Don’t beat yourself up because of comments from someone who has nothing else to do but harass crafters.
However, it is essential to pay attention to constructive criticism. Constructive criticism comes from people that are genuinely interested in helping you succeed.
Be Careful Of Following Trends
You decided to go into the crafting business with a product you love and are good at making. Too often, new crafters will see a fellow crafter sell their product like wildfire and think they should follow suit with the same product at a different show.
Remember that trends come and go. Craft business owners who follow those trends come and go too. Of course, you should create a product that may be trendy in the interest of your business. If snowmen are “in” for the holiday season, make some to complement your other items, but never change your product line completely to follow the crowd.
Prepare For Tax Season
All businesses have to pay taxes. One way or another, the government will get its cut of your profits. So you need to plan for that. One of the number one reasons for small business failure is poor tax planning. If you want to stay in business, plan for those taxes.
An accountant is always best, but you can use QuickBooks or some other money management software to pay your taxes. The main thing to remember is that when you make money, taxes will be due.
In Launch Your Dream Business, I share how to set up a system to track your finances and prepare you for tax season.
The last thing to remember is that you’re in business to make money, not spend it! So make wise decisions. When you start a craft business, there are many things to consider. You will need to figure out how to market your product, so you’ll need to devise a marketing campaign. Make Your Business Soar is a four-week course that will show you how to market your business for growth.
Want to know if you are ready to turn your craft hobby into a craft business? I’ve created a free checklist of the 5 Things to Have Before Starting A Craft Business so you can turn your hobby into a craft business. I created this checklist because I often see DIY Crafter and Handmade Crafters struggling with knowing how to get started as a business. If you can relate to this, my 5 Things To Have Before Starting A Craft Business is explicitly designed to help you know exactly what it takes to start a handmade business and get to do what you love, crafting. So if you’d like to take advantage of this free download.
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- Be A Vendor Booth Rockstar – 5 strategies to help you be a prepared and confident seller at your next Craft Fair.
- 5 Things to Have Before Starting A Craft Business – Download my Free Cheat Sheet & Turn Your Hobby Into A Business!
- 100+ Small Business Ideas – A list of over 100 ideas for small businesses that you can start from your home. This helps you brainstorm and come up with the perfect business for your skills and personality.
- How To Use Instagram To Grow Your Local Business – This cheat sheet helps you use Instagram’s power and influence to reach your local audience and grow your business.
- Launch Your Dream Business – This 5-day course helps you set up your business correctly and gets you started building your dream business.
- Make Your Business Soar – A Premium online course that guides you on the step-by-step journey of how to market your business..
