Information Source - Small Business Administration

Check out the Small Business Administration website for all sorts of small business information. It includes everything from a small business planner, services they offer, tools for productivity, and local resources. I recommend the start a business section, which takes step by step on starting a small business.

I just finished reading...

Well, I just finished reading Barbar Brabec's book "The Crafts Business Answer Book - Starting, Managing, and Marketing a Homebased Arts, Crafts, or Design Business." I highly recommend that you get this book if you are starting or running a small crafts business. Her book is well organized, easy to read, and it covers just about any question that you have. She explains every topic in easy to understand language. She also provides you with additional website links so that you can look up information in more detail. Her topics cover everything from business licenses, sales tax, income taxes, marketing, copyright issues, and much more. It's well worth the price. Make sure you buy the latest edition so that it contains all of the latest information. I own an older book by Barbara Brabec and while the information is very helpful it did not include any internet links since the book was written before the internet was popular.

How to register to do business

How do I register to do business? Where do I go? Can I do it myself? How much does it cost? These are many questions you are probably asking yourself. The answer is - it depends on the state where you live. (This refers to the United States only). There are many state and local regulations that have to do with doing business in a state. The easiest way to start is to go to your state's secretary of state website and then find a link that has to do with starting a business. If you don't find such a link then e-mail your secretary of state's office and ask them. Some of the common requirements that you will find will have to do with registering assumed names and registering for sales tax. Here is a link to a list of all secretary of state offices.

Thinking of Starting a Small Business Selling Crafts?

So you make some really wonderful and unique craft creations and all of your friends encourage you to start your own crafts business. Wouldn’t that be so much fun? You could certainly use the money you make from your sales. That’s what I thought when I took the plunge and decided to make handbags and diaper bags. What I found is that there are several costs related to starting my own business. Here is a list to consider:
· Materials and supplies
· Equipment to make your items if you don’t have good equipment
· Labels for your products (in my case labels for my purses)
· Business cards
· Domain name
· Web hosting
· Digital camera
· Computer
· Internet connection
· Fees to list your inventory on a website
· Shipping materials
· Auction website template
· Last but not least – your time!
o To make your inventory
o To learn how to take good pictures
o To take good pictures
o To write good descriptions
o To determine the price of your items
o To determine the cost to ship
o To list your inventory online
o To ship your sales to buyers
o To promote yourself online
o To maintain business records

What I also found is that competition can be brutal online. When I started out I thought that I had the most unique creations out there. Then I realized that there are hundreds of people out there selling really unique things and that a lot of them are selling them for very low prices. You need to take the time to investigate the market that you want to sell in and whether your product is unique enough and whether you can make a profit with the prices that the market is paying for your product. I found out that my friends are willing to pay me more for my current product line than what I can sell them for online.

So, after you consider all of these factors and do your research, ask yourself whether you really want to start an arts and crafts business. What’s your motivation? Do you want to eventually support yourself from the profits of this business? Do you want to have a profitable side business? Do you want to sell enough to pay for your “habit”? Is this just a hobby? Once you figure the answer to these questions then consider the cost involved and determine whether it makes sense for you to start a crafts business. As for me, I would like to have a profitable side business and I believe that after months of research I have found the type of product I would like to offer online. But more on that later as I start this process. In the meantime, I will continue to sell to my friends at my very successful annual home boutique.