Starting and running a craft business can sometimes be as confusing as it is rewarding. Here are 5 things to know before starting your venture into the world of professional crafting.
1. Shop Around
Always comparison-shop for supplies. Prices can vary greatly from vendor to vendor. Once you find a low-cost supplier, don't stop there! Over time, prices do change. It's a good idea to keep an eye out for another distributor.
2. Buy at Wholesale Cost
Many suppliers offer discounts to qualified buyers. Qualifications differ, but usually a Retail Tax ID number will suffice. Call your local courthouse to find out whom to contact to obtain a retail tax permit in your area. (If you are selling crafts, you should already have one.) Once you have your tax identification, ask individual suppliers if they offer wholesale discounts and how to qualify.
3. Buy in Quantity
Often, buying supplies in bulk can save money. When comparison-shopping for materials, ask each vendor if quantity discounts apply and if so, what the percentages off will be.
4. Use Recycled Materials
Be creative with your raw materials! You may be able to save quite a bit by using recycled wood, textiles, plastic, metal and anything else you may use. Of course all of your supplies cannot be obtained through recycled materials, but you might be surprised at where you can cut costs if you give it some thought.
5. Shop at Discount Stores
Many large chains offer comparable prices on certain craft supplies. If you intend to resell the finished product that you make and have a Tax ID number, you can avoid paying sales tax. Ask the store manager for details on tax exemption status.
Marketing is the another key ingredient to any successful business! You must have ways to get the word out about your products. Whether you will be attending craft shows, placing mail order ads, or selling your crafts online.
Selling crafts online involves more than simply publishing a Web site. Successful online marketing requires time, dedication and a basic understanding of marketing in general. Your online craft shop is merely an extension of your real-world business and all forms of marketing should compliment each other to work efficiently and effectively.
