The Business Chat - 12 ways to holiday up your online shop

I have just seen my first Christmas decorations in a store. It’s official, the holiday shopping has begun. As Halloween hasn’t even happened we’re not yet into panic stages yet. This is the time of year when customers are starting to think seriously of shopping, it’s the research time of year. And where are most people looking right now? You got it, online. 

Now is the time to spiffy up your online site before the crazy shopping begins. People are looking, and bookmarking, but many won’t purchase until the holidays get closer. It’s time to go over your site and make it as inviting and easy to use as possible.

Here are 12 steps to help you build up your online business for the holidays.

1. If you make any holiday specific items now would be the time to list them. Even though people aren’t buying the Santa sweaters in October, they will bookmark it and come back in November when they do want to buy. 
2. Make it easy for a customer to find your online shop. Your website address, email address and phone number should be listed EVERYWHERE. Put these on your business card, all over your website, on your facebook profile and in your email signature. If they can’t find you they can’t give you money
3. Check the useability of your shop. A really good exercise is to ask someone who’s not very computer literate to try and buy something from your shop. Ask them to document problems they have. If someone can’t figure out how to use your Buy Now buttons then they can’t buy your work. 
4. Let the customer know about shipping deadlines. This is critical for the holiday season! Have the cut off date for shipping on the front page, especially as that date gets closer. The post office gets slower as they get busier so err on the side of caution. Make sure you list deadlines for both local and international.
5. Post your shipping information somewhere accessible. Make sure you list your shipping options and give them a choice. Last minute shoppers are usually willing to pay extra for express shipping as long as they know how much it will cost.
6. Have a picture of your shipping packaging. Do you gift wrap? (an excellent option to offer at Christmas). Let them know. If you don’t have a picture of your packaging, describe it well.
7. Take a good look at your shop policies. If they aren’t clear now is the time to rewrite them. Can they be easily found?
8. What is your refund policy? At this time of year people are buying gifts and one thing on their mind is “what if my sister doesn’t like it? Or if it doesn’t fit?” So what are you going to do if the recipient doesn’t like it? How will you exchange it? In what time frame? Decide now and let your customers know. Post this information somewhere prominent.
9. Add new work on a regular basis. (Ideally you’ll do this all year). If a regular customer wants to buy someone a gift, make sure there is something new for them to choose. If you have the same work all the time it starts to look tired. Keep your site fresh and interesting. Give them a reason to come back weekly for the next couple of months. If they’re excited about what’s new in your shop, they’re not spending their time looking at other shops. 
10. Let’s talk photos, how do yours look? Photos can always be improved, if you have some time, try shooting different angles or putting them on a different background. If you are making wearables it’s always a good idea to have one photo of the item on a model. Round up a good-looking friend and see if they’ll model for you.
11. While you’re looking at improving your photos, read through your product descriptions. Are they all that they could be? A good description provides all the necessary materials, dimension and size information. A good description includes an interesting story or quirky detail. It’s always good to suggest who this item would make a great gift for.
12. Communicate your payment methods. They like it, is it clear to them how they can give you money?

In my little business, 60% of my annual income happens in the last 2 months of the year. In the feast and famine world of making a living with our hands, this is full on feast time. Doing the prep work well in advance will lead to excellent feasting. So come on everyone, it’s time to get ready. 

The Business Chat - 8 steps to build interest in your work

Guess what happened this week? I looked at the calendar and realized that my first holiday show is in 5 weeks!!! EEEEEKK! Boy did that start a bit of a panic attack! There is SO much to do. There’s inventory to be made, a new booth to be built, photos to be taken and packaging to order. 

All of these tasks will get me and my work into a beautiful booth and looking lovely. 

Wait - there’s something missing. Not only do I have to make and display the work, I have to take care of the most important part. I have to tell my customers all about the work. 

Telling them where and how to buy this holiday season is a start. More important is to tell them ABOUT the work. 

Your customers choose to buy handmade work because they want to know the hands that made it. As fabulous as your earrings/mittens/painting/dress are, there is so much other nice work competing for their attention. Showing everything behind the work means they see yours as not just an object but as 3D story. 

I’m embarking on a 4 week campaign to rev up my customers interest. Here’s my 8 steps to build the excitement. Do 2 of these a week and get the ball rolling! 

1. The idea or inspirations behind the piece or the collection. 

What made you think of the piece you’re working on? For me a lot of work is based on travel or food or flowers or a photo I’ve seen. Show your customers what you’re inspired by with a photo and add a few quick words. Adjectives are good here. Add 5 adjectives to describe the feeling behind the work. 

2. The design process. 

Sometimes I sketch the piece first, sometimes I throw a whole lot of beads and findings in a pile beside the photo. What do you do? 

Take a photo and share it. People LOVE sketchbook photos. 

3. Work space

This is where the magic happens. If your area is totally messy that’s fine, it makes it more real (that’s what I tell myself). Share a photo.

4. Tool time. 

Take a photo of your favourite tool and talk a bit about it If you use technical terms explain them. Remember, what is obvious to you is magic to your customers. 

5. The piece in progress. 

What does it look like halfway done? 

6. Done!

Share a photo of the finished piece sitting on your workspace.

7. Packaging.

Wrap your work up as the customer receives it. This is a great time to let them know where, when and how they can purchase it. 

8. Out in the world. 

Show your work out in the wild. Hang your painting in a room, have someone wearing your necklace, put the mittens on a hand. 

In 4 weeks time my earrings will have gone from being just earrings to earrings inspired by the ocean, made in a torch that the customer has seen and understands (from my photo), from beads to final earrings, bought from my online shop and worn at a party. 

They are no longer earrings, they are a story. 

Go ahead, it’s time to share your story. 

The Business Chat - 6 tips to make you a shipping superstar

Isn’t it such a thrill to open your inbox and see that new order? Big happy dance! Now let’s ship that order out.

Packaging and shipping services are some of the best opportunities you have to communicate with your customers and remind them why they should continue to shop with you and not someone else. Clear communication and super cute packaging will give the customer nice warm fuzzy feelings, and happy customers are repeat customers. 

1. Make sure your shipping policies are very clear and very easy to find. Communication is key for online shopping. Your buyer should know the following:

• are they purchasing the exact item or one similar that you will make when it is ordered, if so how long does it take to make
• what method do you ship by, do they have a choice of shipping methods
• how much is shipping to various countries
• how long does shipping take
• can they upgrade the shipping if they need it faster
• what will the package look like

2. Let the customer know that you received the order. Although we all order online on a regular basis there’s still that tiny little doubt when you’ve sent your credit card number into space. Did it go through? Did they get my order? What happened? Give your customer piece of mind that yes, all is well. 

3. Let the customer know when the order has shipped, how it was shipped and when they can expect it. It only takes a minute to send an email with this information and that is the best minute you can spend. Not only are you letting the customer know that you’re on top of your business, you’re managing their expectations. We all know what it’s like to keep checking the mailbox daily waiting for a package, if the customer knows it won’t be there for 10 days then they won’t get so antsy. If you sell work that is made to order it’s a really good idea to send an email stating that you received the order and let them know the expected shipping date. When the work goes out the door, send another email letting them know it’s on the way.

4. Say thanks with a handwritten note. Your customer has chosen to purchase handmade work, keep the handmade connection going. And connections are what are really important. A handwritten note shows that there is a real person behind their purchase, it’s a nice touch.

5. Make sure all your contact information is included in the package. The buyer knows where the work comes from however if this is a gift you also want the recipient to know. Make sure they can find you again to purchase more!

6. Pretty packaging is important. Who doesn’t like to open presents? You only have one chance to make a first impression, make it a good one. If they open your package and get all excited and happy then they’ll associate those feelings with you in the future. I personally don’t decorate the shipping envelope as I have found that really well decorated envelopes go missing more often than plain ones. To make up for the plain outside I use lots of tissue paper and ribbons inside. It only takes a minute and costs pennies. Time and money well spent to make a customer feel special.

The Business Chat - And the survey says...

Pssst, let’s talk about... money...

It’s one of those dirty words in the arts and crafts business. Money. There are those who feel that you should be doing what you do for the love of it. There are some who feel that they can’t charge much because it was so easy to make. And there are some who realize that what we do took a long time to learn and that we deserve to make a living wage. 

Whatever your feelings about money, the topic is not often discussed. We talk about our expenses, we talk about how we did at a show in a very general way, “oh sales were up! down!” but we don’t mention numbers. We can find talk online about salaries for regular professions but not for crafters, and rarely do small business websites talk about the arts. 

The topic of money is one that came up in a group that I belong to. This is an group of Canadian artisans and crafters where we freely share information yet rarely talk about the big dirty subject of money. One member took it upon herself to put together a survey for the group. This survey was anonymous and completely informal. Just under 100 people filled it out. It is not scientific. Yet it is one of the only times that real people working in the field talk together about money. And for those just starting out, it is a great window into what you can expect. 

So here you go. 

Is your business your full time job? 

75.9% yes

24.1% no

What category do you work in?

5.7% : body care

4.6% : ceramics

5.7% : kids' clothing and accessories

12% : fabric and textiles

8% : fashion accessories

14% : jewelry - fashion

6% : jewelry - fine

5% : original art

What is the main source of your income? 

73.5% : craft shows

12% : wholesale

3.6% : etsy

6% : own website

1% : consignment

3.6% : commission

How old is your business? 

less than 1 yr  : 3.6%

1 - 2 yrs : 8.4% 

2 - 5 : 28.9%

5 - 7 : 13.3%

8 - 10 : 12%

10 - 15% : 20.5%

15 - 20 : 4.8%

20+ : 8.4%

How many shows do you participate in annually?

1 - 5 : 28%

5 - 10 : 45.3%

10 - 15 : 12%

20 - 25 : 1.3%

25+ : 4%

What is your average sales TARGET per day per show?

$100 - 500 : 9.3%

$500 - 750 : 17.3%

$750 - 1000 : 14.7%

$1000 - 1250 : 25.3%

$1250 - 1500 : 6.7%

$1500 - 2000 : 13.3%

$2000 - 3000 : 8%

$3000 - 4000 : 4%

$5000+ : 1.3%

What are your average ACTUAL sales per day per show?

$100 - 500 : 19.2%

$500 - 750 : 20.5%

$750 - 1000 : 24.7%

$1000 - 1250 : 11%

$1200 - 1500 : 8.2%

$1500 - 2000 : 6.8%

$2000 - 3000 : 6.8%

$4000 - 5000 : 1.4%

$5000+ : 1.4%

Do you base your sales expectations on the craft show fee? if so, what are your expectations? 

1x - 1.4%

2x - 2.7%

3x - 5.5%

4x - 4.1%

5-7x - 8.2%

7 - 9x - 6.8%

10X - 27.4%

Don't know - 42.5%

What is the production time for your average piece?

less than 5 minutes : 2.6%

5 - 20 minutes : 22.4%

20 - 60 minutes : 28.9%

1 - 2 hours : 13.2%

2 - 4 hours : 10.5%

6 - 7 hours : 1.3%

 7 - 10 hours : 1.3%

10+ hours : 5.3%

varies considerably : 14.5%

How have your sales performed in comparison to last year?

increased 46.6%

decreased 15.1%

the same 30.1%

n/a 8.2%

What is your lowest price point?

$1 - 5 : 22.7%

$5 - 10 : 21.3%

$10 - 20 : 28%

$20 - 30 : 12%

$30 - 40 : 9.3%

$40 - 50 : 2.7%

What is your average price point?

$1 - 5 : 1.4%

$5 - 10 : 8.2%

$10 - 20 : 9.6%

$20 - 30 : 9.6%

$30 - 40 : 17.8%

$40 - 50 : 15.1%

$50 - 75 : 19.2%

$75 - 100 : 6.8%

$100 - 150 : 2.7%

What is your highest price point?

$1 - 5 : 1.3%

$10 - 20 : 2.7%

$20 - 30 : 5.3%

$30 - 40 : 8%

$40 - 50 : 8%

$50 - 75 : 10.7%

$75 - 100 : 5.3%

$100 - 150 : 8%

$150 - 250 : 30.7%

$250 - 250 : 4%

$450 - 600 : 1.3%

$600 -750 : 4%

$2000 + : 5.3%

What is your average sale?

$5 - 10 : 5.5%

$10 - 20 : 6.8%

$20 - 30 : 17.8%

$40 - 50 : 23.3%

$50 - 75 : 21.9%

$75 - 100 : 8.2%

$100 - 150 : 9.6%

$150 - 250 : 2.7%

$350 - 450 : 2.7%

Do you have employees/contractors or do you do all the production work yourself?

seasonal help : 13.2%

part time help : 18.4%

full time help : 3.9%

solo (or partnership) : 64.5%

The Business Chat - Ho Ho Ho, Happy August!

The sun is shining, the bees are buzzing and guess what? Christmas is coming!!! Yes people it’s time to start the holiday countdown! Right now sales are slow because everyone is on vacation (maybe you are too?). This is the perfect opportunity to start planning and scheduling your holiday season. 

As soon as September hits life will move into warp speed and before you know it you’ll be sitting around that tree ripping presents apart and wondering if it’s too late to list online those Santa earrings you made. 

While you’re sitting around in the sunshine with a lovely frosty beverage, grab your notebook and start planning. 

• Set your holiday goals. What would you like to see happen in your business this holiday season? Name a sales number. Write this number down on a big piece of paper and post in on your bulletin board so that you can see it everyday.

• Work out your product line, are you creating anything special? If so how long does it take to make this and when should you order the supplies?

• Think about your packaging for the holiday season. Even if you don’t do anything special your sales will be higher than they are now and you’ll need extra packaging. Usually ordering in advance is cheaper, work out when to buy this.

• Have you signed up for any craft shows? If no, why not??? Go and find one.

• Good, you’re in a craft show. You’ll need to think about your booth display, packaging, and inventory. Start making notes and think about dates. If you want stuff like posters for your booth (highly recommended) how long does it take to have these made. Once you know this, put the dates on your work calendar.

• Think about how you can improve your online store for the holidays. How about a special banner or other graphics? Start creating or see if you can find someone to create it for you at a cheap price.

• Photos are the most important part of selling online. If you start shooting now you’ll have great shots ready to go when needed. Are your existing photos all that they can be? Why not write the descriptions for the holiday items now? Start now and you can polish to perfection before you list in November.

• Write your shop holiday announcement including stuff like shipping deadlines.

• Are you planning on doing any holiday advertising? When do you need to submit your copy?

• Schedule in when you’ll send out your holiday newsletter. Don’t yet have a newsletter? Go and sign up at Mailchimp (free newsletter management) and learn how to create a newsletter.

• Perhaps you could host a private party for your work. Think about where to hold this, who to invite and when it should be.

• How about some clever promotional ideas? Me, I’m creating bookmarks for my company. I’m eyeing the fridge magnets but the pricing is a bit steep. 

Start now and you’ll totally rock out the season while remaining cool and collected.

Ps. Don’t forget that Christmas isn’t the only holiday coming up. There’s Halloween, Thanksgiving and Talk Like a Pirate Day (September 19). 

The Business Chat - 9 sales tips for your craft show

Being a tiny company of one means I wear many hats during a workweek. This weekend I’m off to yet another craft show of the summer season and it’s time for me to put on my Salesperson hat. Being a salesperson doesn’t come naturally for me, I would much rather just chat and hang out with people than give them a hard sell. As a customer I hate when a clerk is “salespersony”, pushy and with one of those scary all-teeth fake smiles. As an artist (artisan, crafter, maker, whatever you are comfortable calling yourself) it is important that we are genuine in our approach, after all, we are part of what we are selling. Yet at the same time as being ourselves, we do have to sell our work, it’s a balancing act. 

A trick to finding the balance is to pretend that we are working in someone else’s booth. If you were standing in a friends booth how would you treat the customer? Or try this, if you hire someone to work in your booth, how would you expect them to treat the customer? 

Here’s some of my pointers to being a good artistic salesperson. They’re what I would want someone to do should I ever hire someone. They’re what I try to be when wearing the Sales hat. (ooooh, maybe I should buy myself a new hat this weekend!)

1. Stand. 

Standing is a much better vantage point for engaging customers. When standing you’re at eye level and it shows that you’re ready to talk. It’s a long day and sometimes you will need to sit so use a tall chair (Ikea has great bar stools) and put it out in the booth, rather than behind a table. You can sit later when you are off work. 

2. Smile. 

Even if you are grumpy, hungry, disappointed in sales and/or tired, make sure to smile. A very large company spent a humongous amount of money on marketing and came up with the slogan “Smiles are free”. You know what? It works. 

3. Engage people. 

No one like to be ignored although not everyone wants to be your best friend. Start with a greeting and see how they respond. By beginning a conversation it is up to them if they want to continue it. 

4. Sell to the customers. 

Whenever customers enter your booth, stop chatting with your helper or friends, you can chat with them later. If a customer can’t interact with you they can’t give you money.

5. You are not a cashier in a big box store, you are an artist. 

Don’t ask, “May I help you?” or something similar. You aren’t selling underwear at the Bay, you are selling your handmade work. Come up with a good greeting that fits your personality and your style. I use something along the lines of “Hi there!” or “Welcome to my world”. It fits me and people seemed to respond well. It sets the tone and often leads to more conversation. Remember, you are selling yourself too. People shop at craft shows because they want to meet the artist, they want a piece of the magic. Be professional, knowledgeable, friendly & helpful.

6. Share your work. 

When you see customers engaging with your goods, tell them a little about the process and/or materials, especially it involves something special or uses materials they might not recognize. For example, I make lampwork (handmade glass beads) jewelry, when I see people picking up my beads I tell them I make the beads, I don’t wait until they ask. I also have photos and a sign that explain the process. Don’t be too pushy though, let it drop if they clearly aren’t interested.

7. Do NOT read in your booth. 

Seriously, did you spend money on a booth to read? No, you spent money for the opportunity to sell your work and connect with your customers. Same goes for talking on the phone and listening to your iPod. 

8. No gossiping, complaining or whinging. 

While we can’t always be Suzy Sunshine it’s important to put on our happy face when dealing with people. If you are negative in your words or body language your work will be coloured with this bad feeling. Find something nice to say. Even if there’s no customers in your booth except your friend, don’t whine, voices carry and someone walking past may hear. I also never allow friends or colleagues to gripe in my booth. Keep it a happy place. 

9. Dress well. 

Look like your work. Ripped jeans and a grubby shirt are appropriate for cleaning the basement, not for selling jewelry. If you sell expensive high-end work wear really nice clothes. If you sell demure pearl earrings, leave the tie-dye shirt at home. If you sell jewelry, wear it (seriously, I’ve met jewelry designers who wear other people jewelry in their booth.) Wear clothing that showcases the jewelry, not competes with it, plain colours work well. 

The Business Chat - It's monthly staff meeting time!

Yesterday my calendar beeped at me and reminded me, hey, another month is gone, tomorrow is a new month! This is a reminder not just to make sure there’s money in my chequing account to cover bills but for another big event. On the first of the every month I sit down and have a staff meeting. Me, a latte, a cookie and my notebook. 

Every business should do this, and yes, that means you. Knowing what you want to accomplish in the next month means that you are moving towards a goal. If you don’t have a goal line how do you know if you have moved forward? Sitting down and looking at what needs to be done also helps stuff from slipping through the cracks. 

In running my little crafty venture, I try to keep it as professional and business-like as possible. This means I set daily, weekly and monthly goals. Having a set list of what I need to get done keeps me on track as we all know how easy it is to get distracted when you work in a room full of shiny objects! 

During my monthly meeting I detail out what I want to get done and then break it down into weekly tasks. If something has gone onto the list for the 3rd week of the month then I can safely forget about it for now as it will pop up on my list later. More space in my brain for this weeks stuff. 

These are the questions I ask myself and answer so that I can stay focused. Go ahead, grab your notebook and do this exercise. 

1. How much money do you want to make this month?

Say a number out loud. Write it down. Make it a reasonable number. Declare that this is the amount of money your business will make this month. Picture this number in your mind. If you want to you can post this number on your bulletin board so that you see it every day. Stick it on your fridge.

2. What will you do to get to this number? 

Are you selling at any shows this month? What about online? Can you teach a class? Sell a tutorial? Set up a home party at your friends house, what about an office party at your day job? Write down everything you can do this month and how much each thing will bring in. If it’s not enough to meet your magic number then start brainstorming about other ways to make your goal.

3. What actions do you need to take to make those numbers happen? 

If you want to increase your online sales this month by 20% how are you going to do that? Actions can include adding more listings to your online store. Holding a special sale for your facebook fans. Sending out a newsletter to your mailing list to advertise your upcoming craft show. Imagine that you only have this one month to make that number, what do you have to do to get there? 

4. Other than your magic number from the first question, what other goals do you want to achieve this month? 

This is the stuff that’s not directly tied to making money but will lead to making money in the future. Some examples are: 

1. Increase by blog followers by 25
2. Increase your facebook fans by 50
3. Write a blog post once a week. 
4. Start pinning on Pinterest.

5. What do you need help with? Where is this help coming from? 

Most of us try to do everything all by ourselves, they don’t call this the DIY movement without a reason! However sometimes we just need to get help or these tasks will overwhelm us. Help doesn’t need to cost money, there are so many resources available it’s silly not to ask for it. If you want to post weekly on your blog but don’t have the time ask a fellow crafter is they’d like to guest blog for you. If you want to start pinning but don’t know where to start pull up google and do some reading. If you need to outsource some technical work see if you can find someone who will do it on trade, or find someone on a place like elance.com.

Be realistic on what you can do with your task list, your skill set and the amount of time you have in your life. 

6. What will you do to celebrate when you reach these goals at the end of the month? 

As a boss, when your employee pulls off a really great job you reward them with a treat. Go ahead, be a good boss and treat yourself to something. It’s easier to stay focused when you know there’s something special at the end of the road. 

You should sit down at the beginning of every month and do this exercise. You wouldn’t set off on a trip without a map would you, so why start a month without a plan of where it’s going? 

The Business Chat - Evolve or die

As always in the crafty world lately I’m hearing a lot of whining about slow sales. “It’s the economy, it’s the weather, it’s construction, the organizers, too many competitors”. It’s always something that you can’t control. 

You know what? No matter what something will always be out of your control. It will never ever be a perfect situation for selling. Maybe you should focus on what you can control. 

I’ve been thinking a lot about this lately. Because I am having a really great year. (I almost don’t want to say this out loud in case I jinx it). My online sales are up. Every single one of my shows so far has had increased sales over last year. I was telling someone about how things were really good for me and her first question was “why?”. It’s a mighty good question, why am I doing well and others not so much. Because if I can figure that out maybe I can keep doing it. 

In other news, the other day for the first time in forever I went into a large department store. I have to say, it was a horrible experience. The building was run down, there were no signs to tell me where to go, the displays were poorly done and ugly, the place felt like something my grandmother would shop at. The whole time I was there all I could think was that this store was a relic of the past and did no one from head office ever set foot in there to see what was happening? 

With these 2 trains of thought running through my brain this morning I read a long article about how 3 major Canadian chains are running into serious retail trouble. Sears Canada, Reitmans and Indigo are all facing a battle for survival. 

It is a very interesting read and something we should all pay attention to. It’s important not just because these stores are in our neighbourhoods, but because we can learn from this.

Here are some lessons I learnt from this article. 

“Years of complacency, and a failure to innovate, could spell the end of many Canadian retail brands,” said Craig Patterson, a retail analyst and the founder of the Retail Insider. 

Hm, failure to innovate. 

If your customers aren’t buying from you maybe it’s because you don’t have anything new for them to buy. Or to look at. I recognize that not all of my customers will buy every time they stop by (either in my booth or online). Of course they won’t. What I want is for them to continually come by, at some point they will buy and buy again. To keep them around I need to come up with new work on a regular basis, give them a reason to come back. 

“They didn’t, and they don’t, understand their customer,” continued Craig Patterson. Here he is discussing poor merchandising choices, such as Sears stocking lawnmowers in stores in downtown Vancouver where EVERYBODY lives in a condo. 

OK crafters, do you know your customer and what they want? Are you selling in the right venues? 

If you are a painter who insists on making 8’ x 12’ wall pieces have you considered where people who are living in tiny condos will put your art? Maybe you should make prints in smaller sizes. If you are a jewelry designer making huge statement necklaces costing $1,000 then perhaps trying to sell to a bunch of soccer mums in a middle class neighbourhood isn’t the right place for you. 

“People keep going back to some of these horribly dowdy stores thinking ‘there’s nothing here that I want’”. 

That is EXACTLY what I thought when I went into that department store. The ironic thing was that I knew that had something that I wanted but it was so ugly, so uncared for that I couldn’t be bothered looking for my item. 

Take a look at how you are selling your work. Is your booth or online store enticing and spiffy or does it look unloved? Display is so critical to your success both online and at shows. With so much competition around your space must make people (the right people of course) want to come in and find something to buy. 

As I read this I was thinking about why I’m doing well right now. Here’s what I have done that Sears Canada didn’t do. I have a new website and it’s usually up to date with new content. I painted my outdoor booth, put up new photos and changed up my display (not much but enough to look fresh). I have a lot of new work so that long time customers can find something new to buy. I think this is what is working for me. 

There are so many things we can’t control, like the economy, the weather, our competition. It’s really easy to blame outside factors for our lack of success.

Why waste energy on that? Take a look at where you are today think about what you can control. What can you do today to make sure you don’t end up in the same boat as Sears Canada? 

The Business Chat - All systems are go!

Someone recently asked me what I meant by the term "business system." I thought you might like to know a definition that works for me.

A system is a procedure, process, method or course of action designed to achieve a specific result. A good system will help you be consistent in your business practices. Consistency makes customers trust you. Happy customers are repeat customers. 

The bottom line is that a good business system means less wasted time and more time to build your business and increase sales. 

Systems and processes are the essential building blocks of your company. They will allow you to manage the important details of your business. They stop things from falling through the cracks. 

You might be thinking, “are you kidding? It’s just me, working in my dining room. Selling at 3 craft shows a year! I don’t need systems, I need sales!”

ANY business needs systems! In fact, the more part time you are the more important creating your systems and procedures are! If you are selling a lot online and sending 4 packages a day you know what to do every time. What if you are only sending out 2 packages a month? Do you remember what labels you have to print out? How you packaged your work last time? What you need is a list of steps detailed out. 

Imagine that you have hired an assistant and want them to take over shipping your online orders. In order for them to do this you have to tell them how to ship. This is a procedure that should be exactly the same every single time.  

Think of those 3 craft shows that you do. The first one was hard but you managed it. Now 6 months later you are preparing for the second one and you can’t remember what you did. Imagine if you had created a system the first time around. For the second show you could simply follow the instructions you had written for yourself. 

As a side note, even if you do something a LOT, like a LOT of shows (yours truly) you should still create a system. Then maybe you wouldn’t get to the show and realize that you forgot to bring any packaging. Not that that would happen to me. 

Good systems take waste and inefficiency out of your business and help you give customers what they want every single time. Instead of always trying to remember how to do something, you can refer to the notes you have made. 

A system can be as simple as a checklist. Here’s an example of my Post Show Work system. 

1. do the bookkeeping
1. expenses
2. income
3. bank deposit
2. move tax money into tax account
3. go over my show notes
4. make a note of work i am running low on
5. make a note of supplies i am running low on
6. enter names onto mailing list
7. custom orders
1. send them a note telling them when to expect it
2. schedule in making the work
8. email people i networked with to say hi! 
9. send a thank you to the show organizers
10. facebook a “thanks everyone” post and photo from the event

1. 
   

This is a very simple system but it guarantees that I won’t forget something important. After each show I print this out and check off each step. If someone else were doing this for me they would know what they have to do. Basically I am treating myself as an employee and letting my employee know what I expect of them. 

A really well run business will have systems for every step of their operation. Put together, this is called a SOP - Standard Operating Procedures manual. 

It may seem like a lot of unnecessary work right now, but trust me, this will make your life so much less complicated. When that (for now) rare online order comes in, you won’t have to scramble to remember how to ship. You can happily follow your How to Ship system, ship it quickly and then you’ll have free time to work on getting more online sales. 

Now that you know what a business system is, what system do you want to create first?

The Business Chat - What will make you happy?

Wow, I had a great craft show yesterday! Set up was easy, the weather was sunny, the people were very appreciative and I had fun. On a business side, I came home with a little more money than I had aimed for, I added the number of names to my mailing list that I had aimed for and I tested out a new design in anticipation of the upcoming holiday season. (It was VERY successful). All in all, I was very happy, I made all my goals for the show. 

As we were packing up I was chatting with my neighbours and of course the first question was “how was the show for you?” To one side my neighbour was packing up her paintings and I couldn’t help notice that she was packing up the same number of paintings that she had come with, yet she was exuberant and thrilled with how the day had been for her. It was her very first show and her goal was simply to set up a tent and show her new large pieces. She had sold a few of the smaller works and had a lot of interest in the big (and very expensive pieces). Also she had made contact with a potential dealer and added names to her mailing list. Although she hadn’t made much money she was thrilled because she had accomplished what she came for. 

This is the key to success, know what you want and what will make you happy. 

You have to know WHY you’re doing what you are doing. You can’t reach a goal you haven’t set. If you haven’t defined what you consider to be success, how do you know when you are successful? 

I consider my business successful because I’ve met my major goal: I get to go sailing for the winter. I have structured my business to be super busy for 8 months a year and have a lot of down time in the other 4 months. Financially I would be better off in a career job, but then I’d only have a few weeks of vacation a year and I’d be miserable. I started my company to finance my lifestyle. That’s my goal. 

In my Start your Jewellery Micro-Business workshops, I begin the class by asking everyone in the room why he or she is there. The reasons are varied and always fascinating. 

The most common is to recoup costs (beading and jewellery are addictive habits, and not cheap). You may not know how much you’re spending on your hobby but I’ve got a good idea and it is way more than you realize. Other reasons include earning income while staying at home with children or during retirement, or to earn money for tuition. I’ve known women who want to finance an annual vacation, pay for a backyard pool, or ultimately quit their day job and make jewellery full time. And then there are those who want the satisfaction of doing something creative that people will appreciate and love. 

There is no right or wrong when it comes to goal setting. They are YOUR goals. So whether you are starting your business, heading off to a craft show, setting up an online store, creating a website or hitting the wholesale market, before you do anything, decide on why you are doing it and what you want to achieve. 

Ask yourself, what outcome will make me happy? 

The Business Chat - Financial sanity step one.

Does this sound familiar? You went to a craft show and sold some work, did your happy dance and deposited the money in the bank. Because you’ve sold some work, you ran straight to the supply store to pick up those lovely shiny objects you’ve been coveting. Then you ordered some more supplies online, then paid for some business cards and sent a cheque with a craft show application. Then on the way home you bought some groceries. No problem, you’ve been selling work lately. 

Meanwhile, your husband/wife looked at the bank account, saw money and paid some bills. And now you’re looking at the bank account and what the heck? Where’s the money? 

You’re not sure how much money is going in or out. Budgeting is overwhelming. Costs are rising, and you're losing track of where you stand. You know you “should” be earning more based on sales volume. 

In practice, you still can't make ends meet and you never seem to have enough cash in the bank. You wish you could run reports (expenses, income), but you can't access the figures (because it's all mixed together). 

One of the biggest mistakes new entrepreneurs make is to mix their business and personal bank accounts. 

No matter how small your enterprise, if you sell ANYTHING, you are in business and in order to be in business successfully you must track every cent you make and spend. 

Do yourself a favour and separate your personal and business bank accounts. 

No more co-mingling of accounts, no more gray area. No more personal checks for business expenses. No more spending business funds for personal items. 

Whether you open a second personal account or a business account depends on where you are in your business career. Many makers who are just starting out haven’t yet registered their business, a business bank account requires that you be hold a Master Business License which you obtain by registering your business. (Registering your business is not legally required in Canada, you can sell under your name without registering). 

A business bank account is not free so for makers who are new, or who are selling very part-time, justifying the cost of a business account is hard. My suggestion for those who fit this category is to open a free personal account and use it for business only. 

Make it your business bank account. Deposit ALL of your sales income into your business account. Pay ALL of your business expenses from this account. DO NOT pay any personal expenses from this account. If you want to pay yourself, move your “wages” to your personal account and note how much you are paying yourself. At the end of every month go over your bank statement with an eagle eye and make sure you know where every cent is. 

Get a separate credit card to manage all expenses like online shop fees and PayPal transactions. Remember: A credit card is free as long as you pay off the balance every month, and there are plenty of cards out there with no annual membership fees. 

By separating your accounts, your personal financial choices (good or bad) can’t affect your business — and vice versa. You'll also find you have better control and far more sanity when it comes to your finances.

The Business Chat - Consistency is key

Somedays you just want a little treat, something to reward yourself with. Feeling like this yesterday I stopped by my local cheese shop to pick up a tasty morsel. It’s a pretty cheese shop, small, crammed with goodies and everything is beautifully arranged. 

Except....

There were no prices on anything. Hm. 

Being in a good mood I ignored that fact even though it usually makes me nervous. I discussed a few cheeses with the very nice guy and picked out a very small piece. 

“That is $17.00,” he said and I just about fell over. $17????? I was looking for a treat but not that much of a treat. 

Was this my fault for not asking first? I hate discussing price. I bought the cheese, it was excellent and yet I will most likely not return to that store. I felt ripped off. I dislike having to ask the price of every single item before making my decision. 

Last weekend as I took a quick stroll around the craft show I was exhibiting at I saw a piece of pottery I quite liked. Again, no pricing on anything. I wasn’t wearing my vendor badge and didn’t know the maker. She chatted to me briefly before I asked the price of the cup. 

“It’s usually $35 but for you it’s $25”, she said. 

Huh? Why was she giving me a special price? Is it usually $25 but she tried to make me feel like I was getting a deal? This sort of pricing made me question all sorts of things and I wasn’t in the mood for haggling. I wondered if someone else was going to be offered $20. Or $40. I just wanted to buy a cup not wonder if I was being ripped off. Too complicated and so I left. No cup. 

Customers shouldn’t have to ask the price of an item. You can only talk to one person at a time, what do you do if there are 2 customers at once who are interested? Put your prices on your work. It’s your job to communicate with the customers, don’t make them do your work. 

While we’re on the subject of pricing, let’s talk about consistent pricing. Imagine you visit a craft show and see a gorgeous pair of earrings. Even though they are expensive you buy them and feel great. When you get home you go to the makers website to learn more about her. And there are your earrings, at a lower price. Not feeling so great now are you. 

Pricing needs to be consistent across all your sales venues in order to make your customers experience consistent. If you change your pricing at each different craft show, or in your retail outlets, or on your website, the customer doesn’t know when or where to buy to get the best deal. Customers who feel like they didn’t get a good deal are not happy customers. Customers who aren’t happy do not become repeat customers. 

Consistent pricing is especially important when you are selling in stores. For example, you make a necklace and put it on consignment in a store for $100. With a standard consignment arrangement of 50/50 you will be paid $50 for this necklace. You exhibit at a craft show and you decide to sell the necklace for $75, much more than you're getting from the store. Now imagine a customer who buys it at the store for $100 and then sees it cheaper at your booth. Now there is an unhappy customer who feels ripped off by the store. Now the customer doesn’t return to the store. Now the store is unhappy. Now you don’t have a store outlet. 

Never EVERY undercut the retail outlets that carry your work. 

How you communicate your pricing is of course entirely up to you and how you like to run your business. A solid business brand is built on consistency. You should start with your pricing. When customers know what to expect they can spend more time enjoying your work, not wondering if they can afford it. 

And I did enjoy my cheese. Even if I had to wash a little bit of sticker shock down with a wine chaser. 

The Business Chat - 5 ways to kill your own success

“The economy is terrible! All those third world products! All the copying! No one appreciate handmade work! There are too many jewelers/soap makers/print makers/knitters for anyone to make money!”

We all dream of having a wildly successful little business don’t we? (That is why you’re reading this I assume.) Many of us will do just that, set up shop and work out way to our own version of success. And many will not. 

For some the dream just doesn’t seem to happen no matter what they do. The ones who don’t succeed are so busy blaming everything around them that they don’t realize most of the time, the blame for their failure is actually themselves. 

So often people sabotage their own success, without even realizing it.  

Here’s 5 things that self sabotagers do. 

1. All research no action. 

Ooh, wouldn’t it be great if you learnt how to -insert new skill here - before you did a show? And what about that book on marketing, you should read that first. Oh, and maybe you should buy and learn how to use accounting software? And web design? You can’t possible open an online shop until you learn how to code your website. Wait, there’s still lots to learn about marketing!

Argh, you can’t possible do anything until you’ve researched all there is to know in the universe! 

You’re right, there is a ton of stuff to know. Your little business is more than just making some pretty work. 

However. 

You will never know it all. That is not possible. 

At some point you are going to have to put down the books and just do it. 

You can’t succeed if you don’t start. 

2. Quitting too soon

“Well, I made some stuff, I took photos of a few of my best pieces and then I opened an Etsy shop. Only 1 piece sold in 3 months! I did one show, it was okay, but I didn’t sell nearly as much as the girl beside me and it was hard! So I closed up. You can’t make any money selling handmade work.” 

Oh sigh. 

If all it took to be successful was a few photos, and a handful of pretty things then the world would be jammed with success stories. There is no shortcut to success in the handmade world. Expecting overnight success is like someone picking up a guitar for the first time, playing a few times and then wondering why they aren’t selling millions of songs. EVERYTHING takes practice and business is no different. 

It takes time to learn the business of how to sell. Time to put together a really good collection of work, time to build up a clientele, to learn how to sell online, to selling at shows, to actually making a profit. 

If you thought this was a quick way to get rich you’re in the wrong game. Buy a lottery ticket. 

When you are starting out you are up against people who have been doing this for years. What makes you think you can just jump the queue? 

If you’re not in it for the long haul, don’t start.

3. Looking for all the pitfalls. 

“I can’t put my work online, someone will copy it!” 

“In this economy? No way can you run a business these days.”

“Have you seen what it costs to be in a show? There’s no way you can make any money.”

There are a million things that can go wrong in your business venture! Spending your mental energy cataloging every possible pitfall will suck the lifeblood out of your success. 

YOU and only you are responsible for the success of your business. 

Focus on the positives and quit whining about the economy, your competitors, and all the other ways life can dump on you. No one wants to hear it. 

When life give you lemons, make lemonade. 

(or add vodka, either way you have a nice beverage.)  

4. Scattered attention

I know, you have SO many ideas it’s hard to pick one isn’t it? And so you pick several. Yes your jewelry is awesome, but so are your knitted scarves, and your painting, why not combine all 3? Or start 3 businesses?  

Because you can’t possible focus on 3 things at once. 

Especially when you’re starting out and most likely have a job as well, not to mention family, friends, and a life. What’s going to happen is that nothing will get the time and attention it deserves and when something has to go it will probably be the thing that isn’t making any money - your business. 

You can do it all, just not at the same time. Focus on one thing at a time. Especially during the beginning stages of your business when you have a lot to learn about running a business. 

5. Waiting for the stars to align and everything is perfect

Imagine this, your work is the best it can be, your website is amazing, your photos are world class and your product descriptions are riveting. The weather is guaranteed for your outdoor show and your booth display is awesome. Now imagine unicorns dancing around rainbows and showers of money falling from the sky because that is about as likely to happen as the first scene. 

Nothing is ever perfect. You can always improve and you will need to. 

Do the best you can all the time but get your work out there. Evolve as time goes on. 

Done is better than perfect. 

See anything in here that you can relate to?