Running a Handmade Business

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Make your first steps as a handmade business count.

So you're an artist, designer, or craftsperson and want to take your first steps into making money from your talent and skills? This lens is full of advice for anyone starting a handmade business.

Business Basics 

The boring but important stuff.

Get in touch with your local SBA, state government, or chamber of commerce to find out exactly what you need to do from a legal standpoint to get started as a business. You need to make sure you are clear on taxes and any permits and licenses you may need.

They also will have valuable information on running a successful business so take advantage of the resources out there.

Small Business Links 

US Government Resources

US Small Business Administration
Small Business Administration, sba.gov, About SBA, Newsroom, Services, Small Business Planner, SBA Programs, E-Newaletters, Administrator, Local Resources, FAQ
IRS.gov
Small Business and Self-Employed One-Stop Resource.
Business.gov - Official Business Link to the U.S. Government
Business.gov provides information and resources that help small businesses comply with federal, state and local business laws and government regulations.
So you've got a business idea? Now what?
Everyday people come up with thousands of great business ideas that could have produced multi-million dollar companies. But these ideas go nowhere because people aren't sure where to begin.

Books for Handmade Businesses 

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Free and Open Source Business Software 

Starting a business is pricey enough, so here's some completely free software that can help you manage your business.
Open Office
OpenOffice.org: The Free, Open Source Office Suite
Free Personal Finance Software, Online Money Management, Budget Planner and Financial Planning - Mint.com
Free Personal Finance Software, Online Money Management, Budget Planner and Financial Planning - Mint.com - Free personal finance software to assist you to manage your money, financial planning, and budget planning tools. Achieve your financial goals with Mint.
QuickBooks Simple Start 2008
Easy-to-use free small business accounting software to manage your business better.
Free Accounting Software | GnuCash
GnuCash is personal and small-business financial-accounting software, freely licensed under the GNU GPL and available for GNU/Linux, BSD, Solaris, Mac OS X and Microsoft Windows. Designed to be easy to use, yet powerful and flexible, GnuCash allows you to track bank accounts, stocks, income and expenses. As quick and intuitive to use as a checkbook register, it is based on professional accounting principles to ensure balanced books and accurate reports.

Pricing Your Work 

Pricing your work can be an agonizing process. You have to charge enough to cover materials and pay yourself for your time and effort but still make it a price people are willing to pay. It's better to price too high than too low. You can always drop your prices if you have to, but you don't want to suddenly have to jump your prices up significantly higher because you've found you aren't making enough profit.

What to Consider in Pricing

Cost of materials

Time

Fees from selling online (both fees from processing payments and any fees from the selling venue)

Entry fees for shows and festivals

Commission for galleries


What's My Time Worth?
This is a difficult question to answer. How much do you think you're time is worth? $10 an hour? $20? $30? Try to think as objectively as you can about this, it's easy when you enjoy doing something to think that time isn't worth as much as if you were working a regular job, but it is. Don't undersell yourself! If you wouldn't work a 9 to 5 job for the what you are planning to pay yourself then you are not paying yourself enough.

Don't forget taxes, when you are self-employed you are responsible not just for regular taxes but also for taxes that an employer usually pays directly. Your tax rate will vary depending on your state and income level, but make sure you factor it into your self pay.

Pricing Links 

Etsy :: The Storque :: Art of Pricing
The Storque: Etsy's superblog, geared toward Etsy members and readers interested in the handmade lifestyle.
Online Art Magazine - Archive - Pricing your work
Self Representing Artists
Oh!Boyd Advice - How to Price Handmade Goods - Items
One self-employed artisan talks about the business of art and how to calculate prices for handmade items. Don't forget profit on your goods.
Don’t Sell Yourself Short: Price Your Art for What it’s Worth
Do you guess, when it comes to naming a price for your art? I hope not. There are a lot of factors that I consider when pricing one of my paintings - here's how I go about putting a price tag on my artwork.

Books About Pricing 

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Standing Out from the Crowd 

Marketing, Branding, and More

Cuttlefish necklace with packagingThere are a lot of creative people out there creating great work along with all the mass produced products out there. You have to make yourself stand out. This involves good marketing, promotion, branding, and of course good products.

I can't really help with the good products, that's up to you and your creativity. The rest of it though there are some good principles to keep in mind.

Act professional

Treat customers well

Be consistent

Promote often and in a variety of places

Be as creative in marketing and branding as you are in creating your products

Have fun! How many people get to do what they enjoy and make money from it? Don't lose sight of the fun. If you're customer see your passion for what you do they just might get caught up in it too.

Learn More About Handmade Business 

featured lens Branding Your Handmade Products

Learn about building a brand as an indie artist or designer. Branding helps create an image for you and your business. It helps generate repeat business and word of mouth which is so important for small business.

featured lens Make your Handmade Products Stand Out! Using Creative Packaging

There are some easy and creative ways to make your handmade products different from the rest at festivals or shows and make a special surprise for customers ordering your products. This lens is all about using creative packaging to make your creation...

featured lens How To Make Your Own Business Cards

This lens is all about doing it yourself with business cards. Designing them and printing them, coming up with a card that is uniquely you. Even in this digital age the business card is still important. They can be left just about anywhere, tucked i...

Links for Handmade Businesses 

Store Owners Resources Page of The Hand Made Product Directory Store Owners Resources- Store Sales Page - DM Productions and Sales - The Hand Made Directory Page 1- Handcrafting Companies - Rustic Home Decor, Primative Home Decor, Country Home DecorAntique, Vintage, Rustic and Country and Western Reproductions - dmpmc.net
Store Owners Resources Page - The Hand Made Directory of companies that produce and sell handmade products. Brought to you by DM Production and Sales creates and sells Rustic and Primative Country Home Decor, Country Rustic & Primitive Home DecorHandmade products, handmade crafts, crafts, hand craft
Creativity Counts : Entrepreneur.com
Discover how to take your crafting hobby from downtime to big time. - It was a logistics question Lorrie Veasey was reluctant to answer: How was she going...
Interview with Lisa Lam, Craft Business Expert
Lisa Lam is one of my favorite entrepreneurs. She has been both a creative and business inspiration to me as I've watched her grow her...
How to Start a Craft Business
If you're interested in turning your crafting passion into a full- or part-time craft business, then you've come to the right lens! On the "How to Start a Craft Business" lens, I'll be sharing my favorite resources for starting and running a successful craft business. So check back
Tell Your Craft Business Story
How to start, run, and market your own successful craft business
Handmade Business Blog
All about running a business selling handmade products. Advice on promotion, presentation, organization, etc.
How to Start a Craft Business: Interview with Bramble Berry's Anne-Marie Faiola - LoveToKnow Crafts
Starting your own craft business can be a great way to earn extra income while pursuing your passion. In fact, you may find that your home-based business soon turns into a full
CraftBoom - Marketing an Art & Craft Business Online | Sparkplugging (Formerly eMoms at Home)
How to start and market an art or crafts business online, offline, and everywhere in between!
Buyer Turn Offs - CRAFTY BUSINESS ADVICE
Buyer Turn Offs - Craftster.org is a crafting community that includes craft forums, diy craft projects, and craft ideas for members and casual viewers.
Etsy :: The Storque :: How-To :: The Etsy Seller Handbook: All Our How-Tos about Selling
Dear Sellers! Below you'll find a handy index of all the useful How-Tos about Selling on Etsy. We're calling it the Seller Handbook. We'll be adding all new how-tos for sellers to this index.

Latest Post from the Handmade Business Blog 

The Handmade Business Blog

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More Recent Posts from the Handmade Business Blog 

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Using the Web to Promote your Handmade Business 

featured lens Using Twitter to Promote your Handmade Products

Twitter is a platform for sending short messages (140 characters) out to people who 'follow' you. You can use Twitter to build relationships with other people who share your interests and promote your handmade business. This lens is all about how to...

featured lens Using Squidoo to Promote Your Handmade Business

Squidoo is a great, easy way for anyone selling handmade items to promote their creations. Display your knitting, painting, sculpting, jewelry making, etc. and generate more visits (and hopefully sales) on your website or webstore.

Marketing Books for Artists and Craftspeople 

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Selling Online 

The internet gives you a chance to reach potential customers that are unlikely to otherwise see your products. This is especially important if your making a product with a very niche audience.

There are many many places to sell online, you need to evaluate what exactly you need in a selling venue before you choose one (or more than one, selling on multiple sites is becoming more common).

How To Sell Online Lenses 

featured lens How to Start Selling on eCrater

eCrater.com is a free webstore service that is easy to set up and charges no fees for standard services. ECrater is easy to learn and is a perfect solution for anyone brand new to selling online but is also robust and efficient for experienced online...

Online Selling Books 

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Art Festivals, Craft Shows, and Other Outdoor Venues 

Art festivals and craft shows are incredibly popular. Many also include entertainers and food vendors so it's an all around fun day for visitors. The casual nature of the shows also make buying fine art and crafts less intimidating.

On top of the opportunity to sell your work is also the opportunity to meet other artists and craftspeople. Share knowledge, support, and make friends.

Art Festival Lens 

featured lens Preparing for an Art or Craft Festival

Art and craft festivals are a lot of work but worth it for the exposure you get and the great people you meet. Here is a guide to preparing for a show and having a great time. Oh yeah, and did I mention selling your creations?

Other Selling Venues 

Noadi's Art Hang Tags

This is by no means a comprehensive list of places to sell your work. Consider these as a starting point and expand from there. Be creative and don't be afraid to aproach and talk to people about featuring your work. To quote the old truism "nothing ventured, nothing gained".

Art Galleries
Art galleries generally take a commission from the sale of your artwork, it generally ranges from 30-50%. This makes galleries best for large or high-priced work in order to really be worth what you'll have to price it in order to make a profit.

Galleries can be hit or miss. Some galleries are great and promote your artwork well, some will delay paying you and never promote your work beyond hanging it on the wall. Do your research and talk to other artists who've shown at the gallery to find out what their experience was.

I'm not saying galleries are bad, I have some of my work in a gallery but they aren't for everyone.

Art Co-ops
Co-ops are very similar to galleries in look, you have a bunch of artists and/or craftpeople displaying their work. The difference is with a co-op those being displayed also run the gallery, usually there is a monthly fee, small commission rate, plus a commitment to work at the co-op for a certain amount of time per month.

You keep more of the sales price of your work but there is the increased time commitment which can cut into your time for creating especially if you also have a full-time job other than your art or craft.

Local Shops
If you have a product that fits with a local shop go talk to the owner about selling your products there. Examples would be homemade bath products at hair salons, jewelry at clothing stores, or paintings at coffee shops.

You'll need to negotiate with the business whether they want to buy your work wholesale to sell or whether they take a percentage of the sale price.

Rent Booth Space
If your local mall rents booth space to small vendors consider renting one a couple weekends a month. Make sure you check on local and state regulations for this, you may need certain permits first.

Links for Selling in Other Venues 

How to Approach an Art Gallery with Your Paintings
How to approach an art gallery with your paintings: tips for artists wanting to get an art gallery to represent them and sell their paintings.
Approaching an Art Gallery: Contracts and Pricing
How to approach an art gallery with your paintings: tips on contracts with galleries and pricing your work.
How To Decide Which Galleries Are Right For You To Approach
One of the most difficult aspects of being an artist doesn't take place behind the studio walls. It is an unpleasant, sometimes degrading aspect of your career: promotion. Nevertheless, as an artist, you need to develop a method to promote your work and still maintain your integrity.
Guide to Approaching Galleries
After reading the article "How To Establish Which Galleries To Approach", you should have a fairly good idea of how to determine which galleries are appropriate for your work. Once you've narrowed your target list down to those galleries that you feel relate to your work, and would be a good fit for you both stylistically and as a match for your career level, you are ready to develop an approach.

Handmade Photos on Flickr 

the muse by Eddi 07(OFF)

the muse

Truffles and Meltaways by Planet Love

Truffles and Meltawa...

Grandma Greenfield by sarawestermark

Grandma Greenfield

Matt and Far Far by sarawestermark

Matt and Far Far

Happy Birthday Heidi! by sarawestermark

Happy Birthday Heidi...

Aunt Sue "the good" by sarawestermark

Aunt Sue "the g...

For my best Mom-in-Law!!! by sarawestermark

For my best Mom-in-L...

Cufflinks for Leif by sarawestermark

Cufflinks for Leif

ghost face teaset by antware nagy

ghost face teaset

ghostface teapot by antware nagy

ghostface teapot

tenmoku cups by antware nagy

tenmoku cups

tenmoku sugar & creamer by antware nagy

tenmoku sugar &...

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by Noadi

Hi! I'm Sheryl, a sculptor and jewelry designer, I create in polymer clay and mixed media, please visit Noadi's Art to see my work.

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