Take Your Art and Handmade Creations to the Marketplace - Create a Business from Creativity

Ready to get started? Well, as you go browse this lens, make sure to note a few of the links posted, or bookmark this lens. You will want to be able to return and update yourself with the links, the trends, and with new resources. I keep this lens fresh by adding to it whenever I find another reliable resource.

First- Get your business side organized. You do not need to invest in savvy tax programs, or licensing just yet. Those will come as your biz grows. If you have an original idea that you think would be easily reproduced, you may want to copyright it, though. There is a section below on copyrighting for free. Make sure to grab that link and save it for later. But for now, let's focus on the basics:

1. Grab a journal or notebook and jot your ideas down. Keep it handy, or keep smaller ones available in your car, your purse, etc. You never know when inspiration will strike!
2. Create some files and determine where you will store these. You will need one file for contracts/agreements/etc. This is for you to store the printed pages from marketplace agreements, contracts with shows you will seek out later, etc. Make sure you read these before you file them. There is always some fine print- make sure you understand how the other person is making money, are they taking a commission from your sales? Are you paying a flat fee? Is there an ongoing contract where monthly fees will be taken from your bank account?
3. Set up a paypal account. This is really not an option if you plan to sell online. Nearly every marketplace takes advantage of the security associated with pay pal. This can benefit you, too. It is guaranteed, therefore, you do not have to worry about bounced checks, money order scams, etc. And because it involves instant transfers online, you can get your payment quickly allowing for you to immediately ship your items out. Make sure to check out the paypal information in a text box below. It offers advice, some safety precautions, and ideas to ensure the best results from your relationship with paypal.
4. Once you have paypal, do you plan to work with any other financial entities? Accept checks via mail? Accept money orders? What are the conditions? Write this information down, you may want to do a little browsing around on the web for more in depth discussions on these matters to ensure you are not taking too big of a risk! However, increasing payment options is always a good way to increase your products availability to browsing customers.
5. Take stock or inventory- what do you have right now that can be taken to market or posted in the marketplaces? Do you have enough items to start listing today? If so, then you may want to move forward with that step- if not, then it's time to get working on the creativity portion of this venture.
6. Examine and document your inventory, your supplies, and make a list of needs. Keep a ledger sheet for each. You will want to track this information ongoing to help you set prices, determine profits, and determine which products you create are financially feasible. Also create a balance sheet. See a text box below for several online accounting forms that you can take advantage of for free! On your balance sheet start with an entry for the money you currently have available to use as "start up money" for your business. Document in the information areas where this money came from (i.e. is this from your saving account, a gift, did you take a loan, etc?). The total goes into the credit column, as that is your available credit right now. You will update your ledger daily or weekly (depending upon your full time or part time status related to your business). If you need supplies, shop for them and document in the debit column the total spent. When you make sales, that total will go into your credit column. Fee's towards marketplaces, website costs, advertising, etc. will go under debit. Make sense? You will be able to quickly glance at your ledger and know if you are in the hole (which you should expect to be for the first year) or making a profit!
5. Set up a work area where you can readily have your supplies. Set up an accounting and business area (this can be a plastic tote with file folders in it, this can be a section of your file cabinet, this can be all kept on your computer if you have that capability) for your business information. Set up a storage area. The storage area is the hardest space to find for most. This is where you will keep your finished and completed projects. You will want to keep items that have been posted and are up for sale in one place, and items that need to be posted, photographed, etc. in another section of this area. Depending on your product, this may take some space. But as your create your storage area, make sure that your items will be safe from the elements (putting sewn items in a cardboard box in a musty basement may not be the greatest idea!).
6. Once you have yourself organized, it is time to move towards choosing the selling venue.....

The first thing any business owner would do when starting a new venture is to create a business plan, right? So, that is what needed done first and foremost- I took a look at some various business plans and goals that are taught in basic business courses at college. A business plan needs to have short term and long term goals. Basically figure out what you want to create, what you want to sell, and where you want to sell-( ie what avenue or method of selling). So, for me, I wanted to share my art but, I needed to develop a way to make my work a functional product that the public could use. I had to narrow down the various mediums I play around with and set some limits on what I would attempt to develop into a functional end product. I still spend hours playing around with my art journals, or altering photos into keepsakes but these are not something a stranger would realistically purchase. I did examine some of my altered canvases, fabric art, bath and body recipes, etc. and decided these could be something that the public would like. I took some of my canvases and with some additional work, could be converted into purses, jewelry, etc. I was able to use my fabric art the same way. I created bath and body products from my recipes and with some extra time and larger equipment, I was able to create larger batches resulting in larger quantities in less time while maintaining the unique qualities of my bath and body products. I have always loved creating jewelry, and I am always exploring original techniques. Thankfully, the key to jewelry is having a product that accessorizes but also helps you stand out from the norm.

Next I had to decide upon the venue. There are lots of choices available, but lots of factors to consider. Consignment shops are great, but they often take a percentage off the sale as the shops "cut" or they charge a monthly fee. You will have to determine if this is something you can afford or if you can accomodate the cost by raising the price of your product. Craft shows are another option. Craft shows have tons of potential customers walking through the doors, but you also have a significant higher amount of competition for their money in the craft show setting. Shows will often charge a fee for setting up your booth. Again, you will have to weigh the benefits to determine if this is a good choice for your product. You should keep in mind, however, that craft shows can often lead to other shows or venues and they offer a great opportunity for marketing, passing out business cards, and helping the general public become familiar with your unique items. Flea markets are can be a great venue if the crowd is right, however, many flea market customers are looking for those low cost, great finds that they themselves can convert into a treasure. It is worth exploring if you have a flea market vendor close to you. Online shops are a fantastic choice, but trying to narrow down the best marketplace takes a lot of research on your part. Artfire, Etsy, FuzzB, and others, offer online shops for a small fee either monthly or per listing. Developing your own personal website can be a great venue, also. Again, you will need to research the services available and determine which web host offers you the services that best meet your computer skills and needs.

There is a lot to consider when developing your business. It may seem overwhelming, but when you create a plan, it takes you step by step through the tasks. Here is an example of my business plan:

Short Term:

1. Determine what products to sell- and establish an accurate inventory.

2. Establish a presence in two marketplaces

3. Establish a higher ranking with my website and set it up to sell directly.

4. Figure out appropriate pricing for the items by evaluating the cost and time to create each item

On to the long term plan:

1. Establish a good customer base, and RETURN customers

2. Sell a specific inventory out of brick and mortar shops locally

3. Improve my skills and techniques by taking classes, attending workshops, etc. that focus on the product types I am selling.

4. Establish a business presence that can ensure daily orders/daily processing and turn around.

5. Create a specific workshop time/area for me to "work/create" the projects and find a way to streamline it for producing multiples of each item at one time.

6. Break even (as most business classes teach that it takes up to five years to gain profit- so I will remain hopeful to break even)

This is the basic premise of a business plan- set up short term and long term goals for your business. Review these goals, and make sure they are financially feasible. Then plot your goals out into time frames. Do you need to have # 1-3 done before you can move to 4? then make sure you get those tasks done first. Set reasonable time limits for each task. For each short term goal, there may be several steps that have to be completed. For example, if you have set up a website as a short term goal, you will need to write several steps to complete the "setting up a website". Such as exploring the web site providers, should you have it professionally done? How much can you afford? How easy is the website to edit? These will all be issues that help you accomplish that short term goal.

For the long term goals, imagine your shop or business five years from now- ten years from now- twenty years from now- what do you want it to be? Be realistic, then write these down in order of priority. This gives you a resource and reminder for what needs done daily, weekly, monthly to achieve your goals.

So, take some time and create your business plan! It may seem tedious, but in the long run you will be glad you did- and it will help you move forward instead of getting sidetracked.

Ready to sell online? Maybe you already are selling in a marketplace, but the customers aren't coming- what should you do? Is it the marketplace that markets your items, or do you market yourself which benefits the marketplace, also? How do you decide which place is best for you? Should you sell in a marketplace that has several vendors with similar products, or a marketplace where your products will be unique?

So, let's examine the Handmade Marketplaces available. You will want to browse the list (collection of links ) that I have created (and these are updated daily) that discuss the various marketplaces- there are several pro's and cons to each! A great way to narrow down the factors related to the marketplaces is to list each marketplace in separate columns, writing the factors positive or negative under each. I have also compiled a brief list of immediate considerations.

1. Cost- many offer free shops with limited products you can sell which may be what you want to TRY until you are sure; many base their payment as a commission of your sale (Etsy takes a percentage of each of your sales); some offer a monthly or yearly fee which gives you pro service; etc. You will want to explore this and make sure you know what you are committing to.
2. the Marketplace's online presence. If they are small, you may be able to get a good "spot" in the communities within the marketplace, but if they are too small, they may not get noticed in the sea of online selling. However, every big marketplace out there, was once a small idea that someone expanded, so you will have to calculate the risk for yourself and determine if you are willing to be part of the marketplace growth and help it get to a larger status, or do you have limited time and need each minute to be focused on your personal business...
3. Marketplace advertising- how much is the marketplace promoting it's sellers? how much are they promoting the marketplace?
4. Ease of use- can you import from other venues? How long does it take to list an item? How easy is it to manipulate around the community or marketplace?
5. Services the marketplace offers- do they have forums? special promotional tools such as coupons and sales? Showcases? etc.

Before you decide, check below at what users of these marketplaces are saying- your best resource is those that use the service.
Once you make a decision, then it's time to market. See my other lenses for more on marketing ideas, tools, and methods.

Once you set your shop up you need to get noticed! So, get out there! Post links to your shop, join marketing groups, keep current with trends and news- follow my blog at http://mommysreviewsyoucanuse.blogspot.com for the latest places and hideouts for marketing and showing yourself off! But, before you do this, make sure you have:
1. A good shipping plan and have calculated the costs accurately
2. Great pictures of your products- pictures sell your item
3. A valid email and paypal account so you can send and receive payments
4. A blog is always helpful for showing yourself off to the world and telling your story/inspiration/ideas

Do you have great marketing resources? Places where others can share their links and shop url's? Post them on the link list below!

I am a mother, full time employee, full time grad student, and created my own biz online 2 years ago...Mommy Tyme Gifts! It was a hard start, but I have had over 100 sales at my Etsy shop (which isn't bad considering it was very part time for the first year and half). I am now investing more time in my handmade life, and being a mother to my son who was recently diagnosed with a pervasive developmental disorder. To keep his life stable and routine, I need to be home more- thus, I stepped down from a busy career as a nursing home Administrator, started taking my classes for my degree in Child and Adolescent Psychology online, and took a job as a case manager for individuals with disabilities which allows me a very strict 8-4 workday. The rest of my life is my son... But, I find that to alleviate my stress and to ground myself, I need to express myself creatively! So, in the early morning hours, and late at night- I scramble to my work room, anxious for another project to start! I also devote a significant amount of time to writing and blogging with the hopes of helping others (this is usually during those spells of creative block!). So, find out more about me, my shop, and my areas of expertise below- check out my other lenses, and lensroll me! I always reciprocate!