Thursday, August 06, 2009

Buyers Market - Part 4

The reason I was so interested in checking out  the Philadelphia Buyers Market of American Craft is that it seems like there's so much talk lately in the craft community about turning what you love into a business.  

Especially in an economy like this one, people are exploring alternative to supplement their income.  I wanted to meet people like me and like you who are trying to do just that.  It was a major bonus to see Handmade Nation and have a chance to hear Faythe Levine talk about her thoughts on living a DIY lifestyle.

I don't pretend to be an expert on starting a craft business ... or a business of any kind ... but I do want to share my observations with you and see what you have to say about all this.

Make Something People Want To Buy
First and foremost, you have to make something that other people want to buy.  Sounds obvious, right?  But I'm not sure it is.  

Someone will say to themselves, "I love making widgets.  I'll turn that into a business."  But if no one wants to buy your widget, it's never going to work.  I think coming up with a salable product is the hardest thing to do.

Set A Financial Goal
Second, you have to do the math.  How much do you need to make selling your stuff?  This number is different for everyone.  One person might just want to make enough to pay for an extra vacation every year.  Someone else might have a family of 3 to support.  Figure out that number.  Then figure out how many widgets you have to sell to make that number, adjusting for material costs.  Then determine if it's possible for you to make that many things.

A point that Faythe made during the movie Q&A is that many of the friends she interviewed in the documentary had discovered what a toll manually creating crafts can take on their bodies.  Is the thing you make going to injure you when you become your own mini sweatshop?

Do You Really Love Making That?
Third, you need to be able to make the thing you're going to sell ... both physically and psychologically.  Paul Overton at Dude Craft wrote a great post named Soul Motivation about the effect of your motivation could have on your finished product.  He also spoke to Diane about this in CraftyPod #95: Crafting for Money vs. Passion, with Paul Overton.  

Keep in mind, though, even if what you make has mojo, people still have to want to buy it and you have to physically be able to make enough of them to meet your financial goals.  And in any case, mass producing your product line needs to not drive you completely nuts.

Professionalism Counts
OK.  So you have a product that people want to buy and you've determined that you can product the number it will take to meet your financial goals without crippling yourself.  Next, you need to create and maintain a market for your wares.

I think professionalism is the key here.  Think about the companies that you have good feelings towards and what makes you feel good about them.

Personally, I like a consistent brand identity that is carried through all aspects of the company: products, marketing materials, website, advertisements, logo, business cards, displays, and everything else.

Tell Your Story
You also need a good story.  People need to know why to care about you and your work.  Tell them what's important to you, how you make your work, or why you started the company in the first place.  Above all, your story needs to make people feel good.  They need to feel good about you, your products, and supporting you.  Everything in your company needs to be infused with your story.

Definitely tell the truth, but tell the happy truth.  Personally, I love creepy, depressing, and weird stuff ... just look at the list of movies I like and the music I like.  But most of the stuff I like isn't popular and the people who create the stuff I like struggle to make enough money to stay artists.  If you think you're going to hit the jackpot by giving people the sads, think again.

Many of the vendors I met have a small web presence and seemed unaware of the value of engaging with people online.  When I introduced myself as having a craft blog, one person asked, "Crack Blog?"  teehee :)  All of them could benefit from using a website or blog or Twitter to keep their story evolving and to *involve* their audience in their story.  

Be Prepared to Learn
I almost titled this section, be prepared to make mistakes.  But people don't always learn from their mistakes.  Chances are, if you start your own business making things, you aren't going to discover the perfect formula and balance right away.  It's going to take trial and error.  Be prepared to learn from your mistakes and adjust accordingly.

One vendor said she was going to the New York Gift Show later this year and she was glad she'd cut her wholesale market teeth in Philadelphia first because she'd learned a lot even though she wasn't getting the amount of wholesale orders she had hoped to get.  Even a failure in what you set out to do could turn into a success in some other way.

The Buyers Market was the first for Melissa of Sqrl & Bee Studio.  She said she got the opportunity to do the show and even though she wasn't sure where it would lead and the whole idea was out of her comfort zone, she jumped at it.  I think that kind of "fearless in the face of fear" attitude is valuable when trying to build a business.  Which brings us to ...

Be Brave
Take chances.  You might surprise yourself.  This point was brought home when the sisters of Biggs & Featherbelle told me their goal when designing their product line and packaging was that everything be shelf-ready for a retailer like Whole Foods.  And, in fact, Whole Foods now carries their products in their East Coast Stores.  Don't underestimate yourself.  Dream big!

What Do You Think?
Do you have any advice for people who want to start a crafty business?  Did I forget something?  Do you think I'm way off the mark?  I'd love to hear what you have to say!
21 Comments leave a comment


Sister Diane said ...
This is a great post, Alice - advice that for some reason we don't see enough in all the discourse on crafty business, and very clearly and engagingly stated.

Lately, I've been learning two big lessons:

- Your community is not necessarily your market. I think a lot of small business owners only ever market to the people they hang out with online every day. While this audience may appreciate what you do, it's also pretty saturated with marketing messages from other crafters. Reach outside this group to build an audience to whom your product is fresh and new.

- Diversify as much as you can. If you have a small business making things to sell, find ways to make a little income from your other skills as well. Write articles, teach classes, design and build display components - whatever you're good at. It helps keep your income more stable through seasonal fluctuations.
8/6/2009 9:29 AM

futuregirl said ...
Great thoughts, Diane! Thanks for sharing them here. :) You're right, finding an audience is a whole other deal, isn't it? And the suggestion to diversify is smart. xo!
8/6/2009 9:34 AM

Paul Overton said ...
Excellent! Good points all.

I think the point about absolutely loving what you make stands out the most to me, coupled with doing the numbers in a realistic way. I was just having a conversation with someone last night, where we were discussing people's unrealistic ideas as to what things actually cost and how much money any given venture could potentially make. You have to, while staying optimistic, be brutal with yourself about the numbers. A dispassionate assessment of cost and potential ROI is essential in not getting "upside down" in your new venture. God knows, there are enough things to worry about in small business without having to fret over the fact that your math might be suspect.

The other big piece for me is that, if you are going into the business of making things to sell, you are completely dependent on the fact that you will be able to keep making those things indefinitely. If you are not making, you're not making money. This is why it's a pretty good idea to think about other streams of craft-related income that have the potential to make money, even while you sleep; books, kits, and videos, for example. No matter, the point is that by starting a craft business wherein you are the maker of handmade goods to sell, you are creating a job for yourself. While you may be very passionate about that job, it's still a job. So, if your dream is to have more time for yourself and create an income stream that allows you to live comfortably and take vacations and such, you have to do some serious analysis about what it's going to take to get you there. Nobody is saying it's impossible, but you stand a much greater chance of achieving your goals if you pursue them with an "eyes wide open" approach.

Alice, thanks for the great post and for mentioning DudeCraft. Sorry for the long comment. As usual, love,love,love the blog.
8/6/2009 10:03 AM

Paul Overton said ...
I see that, as usual, Diane and I are on the same wavelength.
8/6/2009 10:04 AM

suesue said ...
Thanks for all the information. It's encouraging to have others help you through all the steps for making their craft business better!
8/6/2009 6:05 PM

UK lass in US said ...
I keep having people tell me that I should sell things and I keep trying to explain that I could probably make more money working part time at McDs...
8/6/2009 6:16 PM

Thank you for the time it took to share that information. Though I have been making jewelry for years, it's good to hear/read it again said in a different way. Forcing myself to step out of my comfort zone - whether it is using Twitter as a means of self-promotion or approaching a retail store to sell my work or learning a new jewelry-making skill - has been the hardest/best thing I've done in my business. I'm delighted to have found your blog...I will be back.
8/6/2009 6:49 PM

kerryanne said ...
These posts have been amazing! Thanks so much for sharing your thoughts.
8/7/2009 8:39 AM

Muttix said ...
This is great advice! I don't have my own business myself but it is always in the back of my mind. I Stumbled this post for future reference. :)
8/7/2009 10:45 AM

3rdEyeMuse said ...
relevant, informative and thoughtful. thanks.
8/7/2009 11:23 AM

Rachel said ...
This is wonderful. I loved all the stories from individuals. At the last craft fair I went to, I was so surprised at how many vendors didn't have a web presence. Many booths were sold out or running low, and I wanted to look their goods up later. Great tips, I'll be linking.
8/7/2009 4:54 PM

Susie said ...
For us the charm was actually our local community, which speaks to what Sister Diane said. This isn't always possible, of course, since the internet is practically free and brick & mortar is not, but for us it has been key. Also, I personally get so much pleasure bringing our love of crafting to people who are not involved in the online craft community.

The other thing that has really helped in our success feeds right into Sister Diane's other point, which is diversification. Paul touched on it too. The different elements of our business allow for fluctuations in any one area. If retail is slow one month, we can depend on one of our other avenues of income.

I must say, following your heart (with a dose of reality tossed into the mix) doesn't hurt either. My sister and I have had this dream since I was 11 years old, and realizing it has been such a thrill. We just celebrated our 1-year anniversary, and I've never been more proud of any accomplishment. Despite the long hours (and boy, does the it take up more time than I had ever anticipated!), I'm never tired of going to work. I love to be in my shop, always.

Great post, Alice!


8/7/2009 5:28 PM

Wendy Rosen said ...
The biggest mistake our applicants make is presenting us with stuff that is just too similar to another exhibiting artist. We can't restrict the show to just one artist with leaf earrings... but gosh we don't need more glassblowers making pumpkins! ...or simple strands of beads or pearls with no fabricated central pendant. Have a "family" of items that range in price point and express YOUR style. Also, price your stuff so that you will make enough profit to grow! That means at least 30% OVER your materials and labor expense. We want to work with you before you actually apply... so we can help you be as successful as possible. ....and the last item... don't promise what you can't deliver!
8/8/2009 3:07 AM

futuregirl said ...
Paul ... The hardest part finding a thing that you're totally passionate about that will actually make money and being able to see all that clearly. Or maybe that's the hardest thing for me. ;)

UK lass in US ... Amen.

leslie chisholm ... Glad you stopped in. Keeping from getting into a rut *can* be difficult.

Susie ... Great points. You're absolutely right that finding your market is key. Someone might have a great product, but if they never reach their market then they'll never find success. And thanks for reminding us about following our dreams. :)

Wendy ... Sometimes I think crafters (craftsmen, artist ...) see that something is successful and replicate that thing. You're right that people need to express their own style. I also agree that people seem to under-price their wares. Thanks for the inside view!
8/10/2009 2:34 AM

Becky said ...
I am with you Leslie... stepping out of my comfort zone has always been difficult for me too. I have been reading a really great book titled, "YOU UNSTUCK: Mastering The New Rules of Risk-Taking in Work & Life," written by Libby Gill, and am really learning some great tips to help me step out of my comfort zone. My goal is to eventually make a business out of my passion, which is my crafts. Your advice given in this post will also be very beneficial- thank you.

http://www.libbygill.com/its-time-to-get-you-unstuck

8/11/2009 2:10 AM

Elizabeth said ...
You are good at explaining things. I knew this from your crochet posts, but especially now. I've enjoying these looks at the Buyers Market as much as anything.
8/12/2009 12:48 AM

futuregirl said ...
Elizabeth ... Thanks for the explaining props! :)
8/20/2009 9:36 PM

This is SO right on. You hit the nail right on the head here. Thank you!
8/22/2009 7:46 PM

Jody said ...
Right on! Excellent article!!!
8/24/2009 11:53 PM

Irena said ...
Thank you! Definitely an interesting article.
8/25/2009 1:11 AM
 
This is a great find and a valuable article!

I have been working on my new business for upcoming 2 years. There is great promise and many trials. And wholesale inquiries are starting to come in often which is better than before.

I have spent tons of money and some of it unwisely.

I have read lots of books and have taken the time to establish my branding.

The website is a bummer but I know you gotta have one. I need to get someone to help me with that or too much time will be taken up when I could be producing, marketing and selling. So, I pay more money and sell on Etsy which appears to be a somewhat saturated marketplace but with an incredible global presence. I love that it interfaces with facebook.

anyways, my supplier in Bellingham Washington posted a link about your blog this AM so I am glad I clicked through!

Blessings from Texas!

Kelly Taylor

8/25/2009 11:00 AM

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