Is your Handmade Business Making Money?
Many people will tell you that handmade businesses do not make money and this simple is not true. With smart planning and ongoing marketing, you can have a successful handmade business.
What is true?
The products are not priced correctly
The maker feels guilty about charging what they should
The maker calls them self a crafter
The maker forgets that it is a business
Friends and family don’t treat the business as a serious business
Friends and family expect freebies
Book a 30-minute no cost and no obligation discussion about how we can help you achieve success as a hand made business.
Here is an example of a success story where their handmade business is supporting the family of 6. They sell exclusively via the Etsy platform and their business is helping people save and spend their money wisely.
You can see from this article that they have been very wise in the establishment and running of their business. This aligns with their business offering of helping people to be more frugal with their money.
Some simple suggestions:
While you need to take into account what people will be prepared to pay here is a simple pricing for handmade – Example:
Time + materials = Cost
Cost x 2 = Wholesale
Wholesale x 2 = Retail
Develop systems – just like any business does, so that you are organized. Make sure you plan your week to include making time, marketing time, administration time etc.
Utilise technology to market your business. Have a website, social media presence and think about your business as your main income generating source.
Identify yourself correctly in that you are not a crafter – you are a legitimate business. For example: “I own a cosmetics business” sound better than “I make handmade soaps”. You will have a better chance of people handing over their credit card details too when they purchase knowing you are a true business.
Gain knowledge – You may have started as a hobby, but that shouldn’t stop you from gaining professional advice or coaching. Contacting a coach can help you to gain the knowledge you need to make this a legitimate business where you can make money.
Shout from the rooftops – If you don’t tell people about your business, who will! Toot your own horn and be proud of the products that you create.
Have a niche – Don’t try to make everything for everyone, stick to what works well and sell it. The example above, A Time for Everything, only sells in alignment with their one product.
Brand yourself – Have a brand rather than your personal name. Yes it worked for Martha Stewart, but you may find it easier to on sell when your product has a name.
Make sure your family and friends know that you are running a business and if they love your stuff, they will pay for it. Meet other fellow entrepreneurs and join handmade business Facebook groups to help find others doing similar things.
Finally, just because you sell something that you make yourself, doesn’t make you less of a business owner. It is all in the way that you run your business, rather than keeping it your hobby.
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