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Top Ten Tips on Starting a Craft Business
Listed under: Retail Clinic
Published: Monday, January 18, 2010
Setting up and running your own craft business can be enormously rewarding, but only if it is done right. Expert Rory Gear shares his top ten top tips for instant success
Think about why you want to launch the business
Ask yourself some important questions about your motives for wanting to run your own enterprise, considering whether it is for entirely financial reasons, or because you love the products you sell. Determine whether you will be making any of the items yourself and whether the day-to-day running of the company will accommodate your everyday lifestyle and provide the type of financial security you want. Remember, the clearer you are about your intentions to begin with, the more successful you are likely to be.
Know your ‘USP’
This is what will differentiate you from your competitors. At the end of the day, if you are offering exactly the same products at identical prices to your rival, you need to have a USP, otherwise you risk getting lost in the crowd and giving other companies in your field the upper hand. The key is to find or create a USP that will not only distinguish your brand, store and products from those of other businesses in your industry, but also say something about you and the market you are targeting as well.
Never Forget: It’s a Business – Not a ‘Hobby’
The most common reason why some craft businesses fail is not because of the quality of their products or lack of market potential – but due to poor cash flow. Unfortunately, many hobby-inspired companies tend to break down because their owners lack the necessary experience to run a commercially-viable business. The key to survival is taking as much sound financial advice as you can, ensuring you manage your cash flow so you are able to operate in both good and bad times.
Use Every Means of Marketing Available
Don’t just rely on your shop window or craft stall to attract new custom: market your business professionally. This includes everything from having a strong internet presence at all times, to ensuring you take advantage of as many social media resources you can – whether that be through creating your own online blog or capitalising on the success of sites such as Facebook. Business cards, leaflets and brochures that highlight your products are also of utmost importance, as are occasional magazine features; reminding customers about your company and informing them of any new or exciting things you have in the pipeline.
Are you Selling the Right Products?
Unfortunately, while you might have a soft spot for jewellery made out of shells or tartan teddy bears, the market for these products is incredibly limited. It's therefore essential to ensure that your range of stock appeals to as wide and varied a market as possible, rather than passing fads.
Keep your Business Alive and Vibrant
Make sure you change your window display as frequently as you possibly can, ensuring it never becomes dated or stale-looking. Seasonal colours and interesting backgrounds are always worth considering and it's absolutely vital to make sure your products appear well-presented, attractive and brightly-lit at all times.
Use a Variety of Sales Techniques
Instead of just pricing your products in a static and non-negotiable way, consider offering monthly promotions, special offers and discounts to give your customers an added incentive for shopping with you. Remember, there are lots of ways you can vary your pricing to attract different buyers, so make sure you have a good look at what other companies are doing and experiment with as many sales techniques as you can.
Know your Customer
This is the golden rule of selling. When all is said and done, it doesn’t matter how wonderful your products are; if you are not targeting the right buyers, you are not going to maximise your profits. So make sure you do as much research as you can, ensuring you test the marketplace and talk to as many people as possible.
Adopt, Adapt and Improve
Never stop learning. Always adopt the highest standards and make sure you adapt and evolve your business strategy as and when the company grows, ensuring you improve what isn’t working and continue capitalising on what is.
Make use of the ‘Rural Crafts Association’ (RCA)
Founded in 1970, it is the UK’s leading body for providing information and services to the craft industry. It is there to help, so make sure you use it.
Rory Gear is a writer with extensive experience of setting up and running a new business. He has just completed an eBook on this issue and is considered something of an expert in this field.
Ask yourself some important questions about your motives for wanting to run your own enterprise, considering whether it is for entirely financial reasons, or because you love the products you sell. Determine whether you will be making any of the items yourself and whether the day-to-day running of the company will accommodate your everyday lifestyle and provide the type of financial security you want. Remember, the clearer you are about your intentions to begin with, the more successful you are likely to be.
Know your ‘USP’
This is what will differentiate you from your competitors. At the end of the day, if you are offering exactly the same products at identical prices to your rival, you need to have a USP, otherwise you risk getting lost in the crowd and giving other companies in your field the upper hand. The key is to find or create a USP that will not only distinguish your brand, store and products from those of other businesses in your industry, but also say something about you and the market you are targeting as well.
Never Forget: It’s a Business – Not a ‘Hobby’
The most common reason why some craft businesses fail is not because of the quality of their products or lack of market potential – but due to poor cash flow. Unfortunately, many hobby-inspired companies tend to break down because their owners lack the necessary experience to run a commercially-viable business. The key to survival is taking as much sound financial advice as you can, ensuring you manage your cash flow so you are able to operate in both good and bad times.
Use Every Means of Marketing Available
Don’t just rely on your shop window or craft stall to attract new custom: market your business professionally. This includes everything from having a strong internet presence at all times, to ensuring you take advantage of as many social media resources you can – whether that be through creating your own online blog or capitalising on the success of sites such as Facebook. Business cards, leaflets and brochures that highlight your products are also of utmost importance, as are occasional magazine features; reminding customers about your company and informing them of any new or exciting things you have in the pipeline.
Are you Selling the Right Products?
Unfortunately, while you might have a soft spot for jewellery made out of shells or tartan teddy bears, the market for these products is incredibly limited. It's therefore essential to ensure that your range of stock appeals to as wide and varied a market as possible, rather than passing fads.
Keep your Business Alive and Vibrant
Make sure you change your window display as frequently as you possibly can, ensuring it never becomes dated or stale-looking. Seasonal colours and interesting backgrounds are always worth considering and it's absolutely vital to make sure your products appear well-presented, attractive and brightly-lit at all times.
Use a Variety of Sales Techniques
Instead of just pricing your products in a static and non-negotiable way, consider offering monthly promotions, special offers and discounts to give your customers an added incentive for shopping with you. Remember, there are lots of ways you can vary your pricing to attract different buyers, so make sure you have a good look at what other companies are doing and experiment with as many sales techniques as you can.
Know your Customer
This is the golden rule of selling. When all is said and done, it doesn’t matter how wonderful your products are; if you are not targeting the right buyers, you are not going to maximise your profits. So make sure you do as much research as you can, ensuring you test the marketplace and talk to as many people as possible.
Adopt, Adapt and Improve
Never stop learning. Always adopt the highest standards and make sure you adapt and evolve your business strategy as and when the company grows, ensuring you improve what isn’t working and continue capitalising on what is.
Make use of the ‘Rural Crafts Association’ (RCA)
Founded in 1970, it is the UK’s leading body for providing information and services to the craft industry. It is there to help, so make sure you use it.
Rory Gear is a writer with extensive experience of setting up and running a new business. He has just completed an eBook on this issue and is considered something of an expert in this field.
