Seven Point Checklist for Starting Your Craft Business
Home based ventures are becoming a fast growing business sector in the economy. Many
people now convert their creative talents/hobbies into profitable businesses. Do you have
an extraordinary talent to create craft items? Are you looking for a way to pursue a
venture of your own?
The following checklist will assist you to take your hobby one step further and start
your own craft business.
1. Market Research & Defining Your Products
Before starting off you should first conduct some research and analyze the existing
market. Identify which products are in demand. What type of items do customers sought
after? What are the latest trends and designs? This will help you to understand the
existing market and also realize the existing opportunities in the market. Now that you
have had a feel of the market decide on what type of product you will craft in order to
sell. Your products need to be unique, useful and easy to make. Also make sure that it is
something that you enjoy doing.
2. Organize Your Work Area
Even though you are working from your own home, it is recommended that you have a
separate area or room to carry out all your work. This will ensure that you are able to
work without getting disturbed. Keep all your equipment, raw materials, stationary and
other supplies which you may require for your business, organized in your work area. Also
schedule your work in such a way that routine house work will not interfere with your
3. Business Plan
No matter how small your venture may be it is always good to have a business plan. This
will help you to stay focused on the service which you are offering as well as manage
enhancements in your business. This should contain a brief introduction regarding your
business along with the company plan, marketing plan and the financial plan. You can refer
to library books or surf the web to find guides on how to write a business plan.
4. Licensing And Taxes
The licensing process and the taxes which may be applicable to your venture will differ
according to the state you reside in. It is recommended that you visit your local county
clerk's office and get the information needed regarding the paperwork due before starting
your venture. You can even consult a lawyer and get advice concerning the licensing and
taxes involved with your business.
5. Fixing The Correct Price
This is a vital step in your business. If you overprice you would be driving your
customers to your competitors. If you under price you would be running your venture at a
loss. Always consider the costs you have endured for your product. These may be raw
material costs, time and effort, overhead costs, shipping costs, etc. Your fixed price
should be able to cover all the costs as well as leave you with a decent profit. Check out
the prices of your competitors as well. This would give you a fair idea of the current
rates in the market.