Marketing and Heart Podcast

How To Make A Craft Business Plan

July 14, 2022 Jacqueline Fatica
Marketing and Heart Podcast
How To Make A Craft Business Plan
Show Notes Transcript

Do you want to start a craft business? Are you an artist looking to sell your work? If so, you need a business plan! A craft business plan will help you map out your goals and strategies for your new venture.

It will also help you track your progress and ensure that you are on the right track. In this episode, I'll teach you how to make a craft business plan that will help you succeed!

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Jackie:

Welcome to the Marketing and Heart podcast. A show for handmade sellers like yourself. That's filled with tips and tricks to help you build a solid foundation for your business. I believe if you made it by hand that you should market it with heart. Now let's get on with the show. Well, Hey there and welcome back this week, we are going back to the. Basics. And we'll be talking about how. How to make a craft business plan, whether you were just thinking about opening a shop or you're already established, this is definitely worth a listen. So let's get on with the show. So, do you want to start a craft business or are you an artist looking to sell your work? If. So. You need a business plan. A craft business plan will help you map out your goals and strategies for your new venture. It will also help you track your progress and ensure that you're on the right track. In this episode, I'll teach you how to make a craft business plan that will help you succeed with your future or current business. So why do you need a craft business plan? Well, it's essential for any handmade business owner. It will help you map out your goals, strategies, and track your progress without it. It can be easy to get off track and not achieve your goals. In fact, coming up with this plan ensures that you take your mind from hobbyist to actual entrepreneur. Now that we've answered the question of why let's get into the process of how to make a craft business plan. The first step is to determine your goals. What do you want to achieve with your craft business? Do you want to earn a full-time income? Do you want to supplement your current income? Do you want to be able to quit your day job? Determine what your goals are and write them down. The second step is to research your craft business idea. Is there a market for what you want to sell? Who are your potential customers? What do they want and need. How much are they willing to pay? What are your competitors offering? Answering these questions will help you fine tune your craft business idea and make sure it's viable. So let's talk about what should be included in your plan. For starters, your business name and logo. Spend some time coming up with a unique name for your business. Your name should reflect who you're trying to attract. Don't try to rush this part because you'll be stuck with it for the life of your business, unless you decide to rebrand in the future. And if you do rebrand, that's a whole other story. So try to choose wisely the first time. Once you have a name, you can create a logo to go with it. Are you good with graphic design or using Canva? If not, are you willing to learn? If you find a nice font, you like, it's really easy to create your own in Canva. And there isn't too much of a learning curve. If you'd rather not do it yourself, then you'll want to hire this out. There are lots. Of places to find graphic designers, including creative market Fiverr. Fiverr design crowd creative. Fabrica. Next you'll need a description of your craft business. What do you do? What do you make? How is it different from what your competitors are offering? Try to come up with the elevator pitch version to describe your business. An elevator pitch is a short description of your business that you can give to someone in the time it would take to ride in an elevator. This is useful for when you meet someone and they ask what you do. You don't want to go into too much detail, but you want. Want to be able to capture their attention and interest so that they'll want to learn more. This is also a great time to think about what your slogan might be. For my own handmade business The Wicked Griffin, my slogan is transforming folklore and myth into wearable art. Next you need to think about who your target market will be. So you have a pretty amazing product or craft, but who do you make it for? Whose life would be better because of your product. This is where your target market comes in. A target market is a group of people who you think would be interested in your product or service when you're starting out, it's helpful to focus on a smaller target market so you can more easily reach them. You can always expand later. For example, my target market are people who are interested in paganism and the elder futhark. Runes. I chose this group because I know they would be interested in the kind of jewelry I make, which is inspired by these things. For some people, this might be the hardest part of running a business, but I must say it is the most important. Without a well-defined target market. You simply won't grow. When you try to sell to everybody, you really sell to nobody. The next thing you need to consider is what will be your marketing strategy. Now that you know who your target market is, it's time to start thinking about how you're going to reach them. There are a lot of options here. And the best way to decide is by learning about all of them and what works best for you in today's world, you can find your target market pretty much everywhere. The best strategy is to pick maybe one to three of your favorites and go all out with them. Some marketing ideas include social media. Be it on Instagram, Facebook, or Tik TOK. Email marketing after you've built up an email list, which is my personal favorite. Blogging the best long-term audience building, marketing strategy over anything. Etsy ads. Facebook and Instagram ads. Pinterest and Pinterest ads keep in mind. Pinterest is not social media. It is a search engine. And totally not shameless plug, but if you're interested in email marketing or content for blogging, For your handmade craft business. I've got courses for both in my membership. And you can try it out for only $7. Next in your plan, you need to decide what will be your first craft product line. Do you have at least 10 different products that you can open your shop with or better yet? 10 products that could be considered a collection. A, collection is a group of products that go together. They don't have to be the same product, but they should compliment each other in some way. For example, my first collection was my elder futhark rune set, which included a necklace, earrings, and bracelet in different variations. If you're not quite there yet. That's okay. You can start with a similar craft line until you build up your own inventory. The important thing is to have a plan. For what you want to make and how you're going to make it, the reason why you want to open your shop with a minimum of 10 products is that you want to take advantage of the hype of something new. You don't want to be driving hard, earned traffic to an empty shop. First impressions are everything. Also super golden, hot and spicy tip. Brand new Etsy shops get an extra special temporary boost in the search algorithm. You want to make sure all of your ducks are in a row at this time to make the most of the exposure. Any sale that you make during this period will help your shop rank for real in the future. Don't let this scare you. Please check out the rest of my podcast or blog for more Etsy tips and tricks to help you get the best possible advantage for growing your shop without wasting time or money, figuring it out all on your own. Next, do you know what your pricing strategy will be? Pricing is always a hot topic and there are a lot of ways to go about it. Here's some popular pricing strategies for craft businesses. Cost plus pricing. This is where you take your costs and then add a markup. For example, if it costs you $20 to make a product and you want to make a 40% profit. You would price it at $28. This is how I price my handmade jewelry. Next is value based pricing. This is where you price your products based on the perceived value to the customer. For example, if you make a luxury item that is very well-made, you can charge a higher price than something that is mass produced. Next is competition-based pricing. This is where you price your products based on what your competitors are charging. This is a common strategy for businesses that sell similar products. And then you have premium pricing. This is where you charge a high price for your product because it's unique or in high demand. For example. If you make a limited edition item, you can charge them more than if you made a mass produced item. No matter what pricing strategy you choose. Make sure you're making a profit. A craft business is not sustainable. If you were not making a profit, please do not be like 75% of Etsy sellers charging rock bottom prices just to make a sale. It will not work in the long run. Next in the plan. Have you found any wholesalers to purchase materials from. If you're going to be selling physical products, you need to find a wholesaler that you can purchase materials from a wholesaler is a company that sells products in bulk at a discounted price. You can usually find better prices from wholesalers. Then you can from retail stores. There are many online wholesalers that sell craft supplies. You can also find wholesalers at craft fairs and trade shows. Make sure that when you compare prices from different wholesalers before you make a purchase, You want to make sure that you are getting the best possible price for your materials and no. Sales at hobby lobby and Michaels don't count. Sorry, not sorry. Next, what is your craft production process? And can you make it quicker? You need to have a clear understanding of your craft production process. This includes everything from making product to shipping orders, the more efficient your processes, the more profit you will make. Here's some questions to ask yourself, how long does it take to make a product? Do you have a system for tracking orders and payments? Can you outsource any part of the production process or invest in better tools? What are your shipping costs? And can you find a cheaper shipping method? Next up, how will you be doing bookkeeping? You need to have a system for tracking your income and expenses. This is called bookkeeping. There are many software programs that can help you with this. QuickBooks is a popular bookkeeping program for small businesses. You can also hire a bookkeeper to do this for you. This is a good option. If you don't have the time or knowledge to do it yourself. I personally use a digital ledger. If you want more control than QuickBooks and something that will save you the time it takes to write on paper. This is perfect for you. After a major glitch and my bookkeeping in 2015, I lost an entire year's worth of info and had to figure it all out as best I could. That was a nightmare. I never want to experience again. Next, have you decided where you will be selling your crafts? There are many places where you can sell your crafts. You can sell online at craft fairs and in brick and mortar stores, you need to decide which selling method is right for you. Each selling method has its own sets of pros and cons. For example, selling online is a great way to reach a global audience. However, it takes time to build up an online presence. Selling at craft fairs is a great way to meet your customers face to face. However, craft fairs can be expensive and very time consuming. Selling consignment in local stores is a great way to get your products in front of new customers. However, you will have less control over how your product is displayed. You need to decide which selling method is right for you and your craft business. Now let's talk about goals. Do you have any goals for your handmade business? Some goals that you may want to consider for your business include increasing craft sales by X, X percent within the first year, or creating a brand identity for your craft business. You could start building a customer base. You could create and sell craft tutorials. Or you could try adding 100 new email subscribers to your list in your first year. These are just a few examples of goals that you may want to set for your craft business. And there you have it. I hope this post helps you to get started in creating your own craft business plan. Talk to you next week. Thank you so much for listening. If you're looking for more ways to grow your handmade business, why not head over to my website at www.marketingandheart.com. See you there.