Running a Handmade Business

So you're an artist, designer, or craftsperson and want to take your first steps into making money from your talent and skills? This lens is full of advice for anyone starting a handmade business.

This is only a starting point to learn, it's up to you to make it happen.

The boring but important stuff.

Get in touch with your local SBA, state government, or chamber of commerce to find out exactly what you need to do from a legal standpoint to get started as a business. You need to make sure you are clear on taxes and any permits and licenses you may need.

They also will have valuable information on running a successful business so take advantage of the resources out there.

Starting a business is pricey enough, so here's some completely free software that can help you manage your business.

Pricing your work can be an agonizing process. You have to charge enough to cover materials and pay yourself for your time and effort but still make it a price people are willing to pay. It's better to price too high than too low. You can always drop your prices if you have to, but you don't want to suddenly have to jump your prices up significantly higher because you've found you aren't making enough profit.

What to Consider in Pricing

• Cost of materials
• Time
• Fees from selling online (both fees from processing payments and any fees from the selling venue)
• Entry fees for shows and festivals

Commission for galleries

What's My Time Worth?

This is a difficult question to answer. How much do you think you're time is worth? $10 an hour? $20? $30? Try to think as objectively as you can about this, it's easy when you enjoy doing something to think that time isn't worth as much as if you were working a regular job, but it is. Don't undersell yourself! If you wouldn't work a 9 to 5 job for the what you are planning to pay yourself then you are not paying yourself enough.

Don't forget taxes, when you are self-employed you are responsible not just for regular taxes but also for taxes that an employer usually pays directly. Your tax rate will vary depending on your state and income level, but make sure you factor it into your self pay.

There are a lot of creative people out there creating great work along with all the mass produced products out there. You have to make yourself stand out. This involves good marketing, promotion, branding, and of course good products.

I can't really help with the good products, that's up to you and your creativity. The rest of it though there are some good principles to keep in mind.

• Act professional
• Treat customers well
• Be consistent
• Promote often and in a variety of places
• Be as creative in marketing and branding as you are in creating your products

Have fun! How many people get to do what they enjoy and make money from it? Don't lose sight of the fun. If you're customer see your passion for what you do they just might get caught up in it too.

The internet gives you a chance to reach potential customers that are unlikely to otherwise see your products. This is especially important if your making a product with a very niche audience.

There are many many places to sell online, you need to evaluate what exactly you need in a selling venue before you choose one (or more than one, selling on multiple sites is becoming more common).

Art festivals and craft shows are incredibly popular. Many also include entertainers and food vendors so it's an all around fun day for visitors. The casual nature of the shows also make buying fine art and crafts less intimidating.

On top of the opportunity to sell your work is also the opportunity to meet other artists and craftspeople. Share knowledge, support, and make friends.

This is by no means a comprehensive list of places to sell your work. Consider these as a starting point and expand from there. Be creative and don't be afraid to aproach and talk to people about featuring your work. To quote the old truism "nothing ventured, nothing gained".

Art Galleries

Art galleries generally take a commission from the sale of your artwork, it generally ranges from 30-50%. This makes galleries best for large or high-priced work in order to really be worth what you'll have to price it in order to make a profit.

Galleries can be hit or miss. Some galleries are great and promote your artwork well, some will delay paying you and never promote your work beyond hanging it on the wall. Do your research and talk to other artists who've shown at the gallery to find out what their experience was.

I'm not saying galleries are bad, I have some of my work in a gallery but they aren't for everyone.

Art Co-ops

Co-ops are very similar to galleries in look, you have a bunch of artists and/or craftpeople displaying their work. The difference is with a co-op those being displayed also run the gallery, usually there is a monthly fee, small commission rate, plus a commitment to work at the co-op for a certain amount of time per month.

You keep more of the sales price of your work but there is the increased time commitment which can cut into your time for creating especially if you also have a full-time job other than your art or craft.

Local Shops

If you have a product that fits with a local shop go talk to the owner about selling your products there. Examples would be homemade bath products at hair salons, jewelry at clothing stores, or paintings at coffee shops.

You'll need to negotiate with the business whether they want to buy your work wholesale to sell or whether they take a percentage of the sale price.

Rent Booth Space

If your local mall rents booth space to small vendors consider renting one a couple weekends a month. Make sure you check on local and state regulations for this, you may need certain permits first.