You're the Boss: Part 9

Don't forget to enter our Raving Fan and Future Raving Fan Contests to win a Sneak Peek at the 2011 Line and Your Choice of Calendars from Much Ado About You.

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Take Advantage of FREE Marketing Opportunities
Social Networking sites are not only great for locating your long lost Kindergarten crush, but they have opened up the door to tremendous advertising opportunities for your home-based business.  Have a fan page for your business and post frequent updates about your shop.

In the last two years I have sold almost 800 calendars.

I think that's pretty good for a little home-based business.

Wanna know how much I have spent marketing these calendars?

Almost nothing.

In the beginning, before I even realized that this was a business, I was making all my sales thanks to word-of-mouth.  The lovely thing about a calendar is that it kind of advertises itself.  Whenever one of my customers goes to a PTA meeting, or the dentist, or is asked by a friend to schedule a lunch... out comes the calendar.

Then I started selling my calendars on Etsy.  It is free to open a shop on Etsy, but you do have to pay a 20 cent listing fee for every item that you list.  I suggest to anyone opening an Etsy shop that you post a new listing every day, whether that means creating a whole new listing or re-posting a listing that has sold... something should be posted every day.  This is because Etsy's search engines go by date posted, so the more often you are posting, the closer to the top of the search your items will be.  Even though this is not 100% free, at 20 cents a listing, you could post every day of the month, and still only spend $6 a month.  That's not bad.

In the last 16 months that I have been posting nearly daily on Etsy, I have sold over 300 calendars in 40 states and 4 countries.  For less than 1% of my profit... I have been able to reach all these people.  That's pretty hard to beat.

But there are also many truly free ways to get the word out about your business.

Here are a few that I have found helpful: 

1. Have a Facebook Fan Page

 It is extremely easy to put these pages up, and it is a great way to communicate with your customers.

I'm sure there are many of you out there that oppose Facebook and the whole idea of Social Networking, but you should very seriously consider getting on the bandwagon if you are serious about your business.  I use my Fan Page to talk about shop updates, sales, the funny happenings of an office full of crazy women... it's a great way to keep my shop on my customers' minds.

2. Tweet

I will admit right now that I greatly dislike Twitter.  I don't get it... I think it is difficult to use... I hate how half the time you try to log on they tell you they are full... but I know that it is another valuable tool for reaching customers.  I do have a Twitter account... MAAYpaperfreak, if anyone is interested.  I opened it because Gussy wanted to tweet about me one day.  She did... and on that day I had the highest number of hits that I have ever gotten on my shop, so clearly Gussy knows how to take advantage of Twitter.  But to be honest... this is not a free opportunity that I take advantage of.  There... I said it.

This makes me feel old.

If you are not as "old" as me... use Twitter.

3. Use your Products

If you sell hair accessories... wear them.

If you sell checkbook covers... write checks often.

If you sell jewelry... never go anywhere without earrings.

I sell calendars... so every opportunity I get, I am whipping my calendar out.

4. Hand Out Business Cards

{Especially if you have super cute ones, like mine.}

Don't be afraid to approach someone that you think could benefit from your products and hand them a business card.

Brooke saw a gal at Gymnastics one day that had an ugly, generic, tattered calendar that she clearly lived by, and she handed her a business card and said, "I've never seen anyone that needed my friend's calendars more than you do."  I have since sold several calendars to that gal.

You don't have to be pushy... trust me, that is not me... I am not a sales person.  Just give them a compliment {a genuine one though... don't be fake} and hand them a business card.  You can say, "I love your headband.  I sell fun hair accessories... here's my card if you are ever interested you can check out my website."

4. Have Excellent Customer Service

I will go into much more detail about this when I talk about tip #10, but truly there is no better free advertisement than a happy customer.  You can't buy that kind of advertisement.

You're the Boss: Part 8

Don't forget to enter our Raving Fan and Future Raving Fan Contests to win a Sneak Peek at the 2011 Line and Your Choice of Calendars from Much Ado About You.

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Be Organized
Organization with your supplies and products will make work much more enjoyable for you.
Organization with your invoicing and expenses will make work much more profitable for you.
Organization with your clients, like responding to emails in a timely manner and getting orders shipped quickly will make work much more marketable for you.

Many years ago Brooke and I were trying to come up with a business that we could start together.  We came up with the idea for Organize Me.  We were going to be Organizational Consultants that came to your home or office and turned your crazy clutter in a beautifully organized sight to behold.

We even wore matching overalls.  It was 2001 people.

Anyway... that business never took off, but my point is that I love to organize.

I am a generally very organized person.  I like lists, labels, and order.

This has been extremely helpful to my business.

I don't need to tell you why being organized is a good idea... it's obvious.

But I am going to give you some tips on organizing your supplies and paperwork that I hope will help you to make your business more efficient.

You know that phrase "Time is money."  Well, it's true.

When you are running your business... the more efficiently you can produce your products, the more profit you will be making on each one.  Bottom line.

So first things first... organize your supplies well.

I make calendars {in case I haven't dropped that hint enough} and so I organize my supplies by design.  Each design has its own drawer that contains all the paper and embellishments needed to complete that design.

Each drawer is labeled with the name of the design it contains.

There are also drawers for extra solid paper, labeled according to the color(s) contained it those drawers.

The white drawers at the bottom contain other supplies, such as glue sticks, Stickles, calendar bindings, ribbon, etc.

I also have a tub that we keep on the work table with supplies that we use every day.

Okay, so my supplies are all in order, but none of the supplies would even be necessary if we didn't have any orders to fill.  And in order to get orders, and continue to get orders, you have to have a good system for organizing your invoices.

I have told you that I use Etsy, so I am going to show you how I keep things straight with my Etsy account, but I'm sure that you could apply a similar system to any shopping channel you are using.

The first thing I do when I get an order is print the order, contact my customer to let them know that we received the order, and relist the product.

I then put the order in a hanging file that is above my desk that says "Need to be Entered", which means that it needs to be entered into our database.

Once the information has been entered into our database, the invoice is marked with an "X" and it is put into the file above which says "Ready to be Made".

Our amazing database that my amazingly fabulous husband built for us prints out a Daily Status Sheet which lists all of our open orders.  {If you don't have a nerdy super-smart husband that can build you a database, you can always just keep a running list using Excel or even Word, but don't tell my husband that I suggested that.}

When my employees come in to work each day they check the Daily Status Sheet, then go get the invoice out of the "Ready to be Made" file and begin working on an order.

While orders are in-process, they are kept in these snazzy trays that I got from Ikea:

I love these trays because each one pulls out completely and can be carried to the work table while someone is working on that order.

When an order is complete, it is prepared for shipping at our fantabulous Shipping Station.  The invoice is then put on my desk so that I can complete it in the database.  Once it is completed, it is marked with a "C" and filed in our Recent Invoices box:

I keep the current and previous month's invoices in this box, in case there is a situation in which we need to refer back to the invoice.  {What... a mistake?  No!  We never make mistakes around here.}

At then end of the month, I move the previous month's invoices into my filing cabinet and start a new file for the next month.  Make sense?

It may take you a while to get yourself organized, but it will be so worth it in the end.  If you have to, shut down your shop for a week and devote your time to getting things in order.

You don't have to spend a fortune.

I got most of my organizational tools at Target and Ikea, and they definitely didn't break the bank.

One last tip about organization: be sure to extend it into your finances as well.  If you are not organized with the money coming and going in your business, I promise that you will never make a profit.  You will never know how much money you are making {or even if you are making any money} unless you know how much you are spending.  My friend Gussy just did an amazing post about Budgeting Your Business that you should definitely check out.

  I will just say:

1.  Open a separate checking account and credit card {with a low limit} for your business.

2.  Keep very good track of your receipts for all expenditures.

3.  Get a good CPA that knows how to take advantage of every tax credit that you should receive for running your home-based business.

You're the Boss: Part 7

I just giggled when I looked at the tip that I am supposed to expound on today.

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Start a Blog
Blogs are another great {and free} alternative to a website, and a great way to get the word out about your business.  Update your blog frequently and it will be likely to show up at the top of web searches when people are looking for your types of products.

I was feeling bad that I have not been blogging very consistently lately... feeling a little worthless to my sweet bloggers... and now I'm supposed to tell you all about how you should be like me and start a blog!

Well... be like me and start a blog... but then be better than me and give your readers something to read.

Okay, now I will tell you why I think starting a blog is great for your business.

First of all, if you don't have a website a blog is a great way to have a free presence online.

I knew nothing about blogging before I started this blog.  To be honest, I am not really a blog follower myself.  It's kind of a random set of circumstances {which we all know is really just God's divine knit work} which got me into this crazy blog world.  

I was checking my Google Analytics one night {which I have said I am obsessed with doing} and I noticed that the number one Google search term that was leading people to my calendar shop was 

"how to make a felt hair clip".

Huh?

So I tried it.  I went into Google and typed in "how to make a felt hair clip".  The first link that came up led me to Ashley Johnston's Make It and Love It blog.  So I started browsing around her blog and loved what  I saw.

I saw that she had over 4,000 followers. {Which, by the way, has more than doubled in the last six months... she now has 8,700 followers... if you are not one, you should really become 8,701.}

Then I noticed that she had sponsors.

I thought, hmm... maybe I should sponsor this blog.

So I sent her an email asking about sponsorship.

Then I started thinking, hmm... maybe I should start spending some money on blog sponsorship rather than Etsy showcases {which didn't seem to be getting me anywhere}.

And with that, my blog journey had begun.  

I started madly searching the web for fun crafty blogs.  I emailed several that I thought would be a good fit for my business and started calculating who I should sponsor.

{Since I am a little off topic here, let me just insert that I do not sponsor a ton of blogs.  Currently I am sponsoring Make It and Love It, Gussy {the blog}, and Bird Crafts.  I basically took the money that I had been spending trying to market on Etsy, and switched it to this blog sponsorship.}

As I started reading through these blogs I had two thoughts.  One, wow, these women are amazing, and two, I could write a blog.  When  I saw how many sponsors some of these ladies had I realized that they were making a pretty good living sharing their random thoughts with the world.  I thought... I have lots of random thoughts.  Maybe if I shared them with the world, I could make some money.

So there you have it bloggers... in all honesty... I started this blog as a business, with a plan to make some money off my random thoughts.

I had no intention of making it personal or letting you in on my life.

See how well that plan worked out.

I should have known better.  I can't keep things to myself.

Back to the point... which was... what?  Oh right... start a blog to increase your business.

I have a friend named Kelly that makes the most amazing cupcakes on the planet.  Her business and her blog are called Once Upon a Cupcake.  She has never had a website.  She doesn't advertise other than word of mouth.  But if you notice the Unavailable Dates she has listed on her blog, you will get a glimpse of how in demand her cupcakes are.

All the pertinent information that Kelly's customers need is clearly listed right there on her blog.  For Kelly, the blog was a temporary solution while she was waiting for her Web Designer husband to build her a website... but in three years she has not found the need to create one.

If you do already have a website {which I did before starting my blog} a blog can be a great way to increase traffic to your website.  Since starting my blog I have seen a huge increase in sales.  They are up over 280% from this time last year.  I know that many of my blog followers have become Much Ado About You customers {and I really super appreciate it}.

Now, I don't want to give you the impression that you can just willy-nilly start a blog, and the customers will come running.

I was very methodical about my blog.

The first thing I did was make a list of about 40 topics that I thought I could blog about.  I figured that gave me at least 8 weeks worth of material, and that should be enough to see if this whole blogging thing would work.

Then I ordered my fancy blog {from Designer Blogs... who are very affordable and who I highly recommend}.

Then I started blogging, and let everyone know it.  

I mean... I pimped myself out.  I sent an email to just about everyone I know telling them about my blog.  I posted it on Facebook, and then kept posting {and still do} every time I blogged.  I put a notice in my shop.  I emailed everyone I knew that had a business and offered them a free trial sponsorship on my blog.  I'm telling you... I really spread the word.

Forget what Kevin Costner taught us... if you build it, they will come.  You are going to have to work to build your blog, but if you are really serious about building your business, a blog can be a great tool.

You're the Boss: Part 6

Looking for the Creme de la Gems  giveaway?  Scroll down or click here.

The next tip on my list is

-5-
Be Creative with your Packaging
Make your customer feel like they are opening a gift when their order arrives.

but I am currently working on some new packaging that I can't wait to share with you, so in the meantime we are going to skip ahead to

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Use Inexpensive Shop Hosting Services
Etsy and Big Cartel are two great shop hosting services that offer very reasonable rates.  Until you know that your business is profitable don’t waste any money building your own website.

I have an adorably cute website.

But don't look at it.  No seriously... don't.  It's embarrassing.  Really.

Okay fine, look at it.

Did you notice that it says on the home page under the "Just In" section "The 2010 Calendar  Line is Almost Here!"?  Yeah.  We revealed that line 10 months ago.  That's how long it has been since my website has been updated.

I got an amazing deal on it, because it is really meant to be more of a blog.

However, at the time I wasn't a blogger, so I asked my Designer to use that design to make a website.

The problem is that it is not very functional.

I cannot do any updating myself.

Then my sweet, sweet, wonderful Web Designer went and had herself a baby and quit working!

I am working on solving this problem and I am hoping to reveal my new and improved website to you all very soon.  Stay tuned.  {I know you are on the edge of your seats.}

My point is... wait, what is my point?  What were we talking about?  Oh right... use inexpensive shop hosting services.

Let's talk about Etsy.

I am a big fan of Etsy.

Etsy has helped me take Much Ado About You global!

I have sold calendars in 39 states, and four countries... and that is in most part due to Etsy.

If you have no idea what Etsy is... you need to check it out.  Warning: in the beginning it is addictive.  There is a constant stream on the homepage of all the new products being posted.  I used to sit and stare at my screen, giddily {is that a word?} watching all the fun handmade goodies pop up.

Etsy is basically a handmade marketplace.  To sell on Etsy you have to sell either handmade or vintage items, or crafting supplies.  It is free to open a shop on etsy, and you get your own shop URL... for example, mine is www.MuchAdoAboutYou.etsy.com.  You pay per listing and then a percentage of each transaction.

Etsy is a great place for handmade crafters to start.  It won't cost you more than a few dollars to test the waters.

But if you are going to do it, do it right.

Here is my advice for starting an Etsy shop:

1. Get a Cute Banner

If you can't do it yourself, there are many shops on Etsy that sell banners.  Just type in "Etsy banners" in the search box and you will get a plethora of options, and it shouldn't cost you more than about $20.

2. Start Posting your Products, and Re-Post Everyday

When people do a search on Etsy, the most recently posted items will pop up first.  If you are not constantly posting, people may have 20 pages of other "girls' hair bows" that they see before your cute products.  Listings are 20 cents, so even if you posted one a day it would only cost you about $6 a month.  Once you start selling things consistently, you won't have to worry about posting, because you will be re-listing your items and that moves them back to the top.  Since I now usually sell at least one item a day on Etsy, I never have to worry about re-posting my listings to get my items to the front.  Make sense?

3. Answer your Convos in a Timely Fashion

On Etsy, a "convo" is when someone sends you a message.  If customers don't get a quick response to their convos, they may take that as a sign of poor customer service and move on to their second choice.  I try to respond to convos within a few hours at the most.  It is ideal when I can respond immediately, because they may still be sitting at their computer ready to order!

4. Know When it is Time to Move On

This is where I am at right now.  I love Etsy, and I am super grateful for how it has helped me grow my business.  But the volume of sales that I have grown to is starting to cost me a small fortune on Etsy.  My Etsy bill has been over $80 a month at times, and heading into my busiest season I expect it could get to over $100 a month easily.  At this point I believe that a lot of my business is coming from blog traffic, and I am hoping that that following will follow me to a new shop.  I don't plan on closing my Etsy shop completely {at least not a first}, but I need to find a cheaper option.

Which brings me to Big Cartel.

Now, I have not started using Big Cartel yet, but it is a big part of my Website Updating Plan.

Big Cartel has three pricing options: free, $9.99 a month, or $19.99 a month, depending on the level of service that you require.  I will be using the $19.99 a month option, which gives me 100 product listings with 5 images per product.

There are several reasons I am making this switch.

One is that it is $19.99 a month.  Period.  No listing fees.  No transaction fees.

Another reason is that it allows the use of discount codes.  Something that Etsy currently does not offer.

Also, it will be a part of my own website, using my own URL, which I think is very official.

I will keep you updated on the pros and cons as I go through the process.

If anyone else has any info they would like to share on Big Cartel or any other Hosting Services, please let us all know!  If I get some really good info, I will add it to this posting.

The bottom line is that Web Design is not cheap.  You could easily spend $3,000 to $10,000+ developing a website with a shopping cart.  For a small, home-based business this just doesn't make sense.  Take advantage of the many inexpensive options open to the little people like us.

You're the Boss: Part 5

Looking for the Rags to Stitches giveaway?  Scroll down or click here.

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Brand Yourself
No, don’t get a tattoo of your business name on your shoulder, but do create a logo that accurately represents yourself and your business.

Before you come up with a logo, you have to come up with a name.

Coming up with a name for my business took me weeks.  

Really?  {You're saying}  Weeks to come up with Much Ado About You???  

I know.  

To be honest, I don't love my business name.  

It is too long, too hard to tell people, and doesn't represent my product.

But my friend Corey, who is in marketing and who I really respect, told me not to change my name, so I am keeping it.  For now.

Another friend of mine {I know... I have lots of friends... I'm blessed}, Sarah from Deer Lovely has been following this series and sent me an email with some great Branding advice.  Since I am not feeling super wise in the area of branding {and since I stumbled upon an amazing designer that created all my branding for me}, I am going to defer to her for this one:

Branding "Cover your Bases at the Beginning and Along the Way"
by Sarah Dowdell

Choosing a Name

My 3 keys to a great business name

1. Make it Original

Sometimes simple is original and sometimes its quirky.
THINK ABOUT YOUR TARGET CUSTOMER.

2. Make Sure it is Available

This may seem like something so simple, but make sure whatever name you choose is available.   

3. Make it Memorable

What about your business name is going to make people remember it? Maybe your logo ties it together or maybe your branding image sparks people's memory.

  4. Pick more than one... just in case your first choice does not work out. 

Advice and suggestions from friends and family could also help in cultivating ideas.

After you Choose a Name...Covering your Bases

1. DBA (Doing Business As) 

This is something you have to do if you are doing business under any name other that your personal name and  is usually just local, but I also recommend checking the surrounding counties. You want to make sure there are not other local businesses with your name. This is very inexpensive and the best prices can be found at www.dbastore.com (they do everything for you… it is pretty awesome) 

2. Resellers Permit and Business License

Once you have a DBA, then it is imperative (if required in your state) that you get a Resellers Permit. You don't want the IRS coming after you for not paying sales tax.
Also check with your city to see if you need a business license... some require it and some don't.
 

3. Bank Account

Get a separate business account. (Advice from my business lawyer: If you can manage get one at a separate bank from your personal accounts, this will make it easier and less likely to have co-mingling of funds in case you decide to Incorporate.) 

4. Website

You can pretty much go to any hosting site and search if your business name is available. Also make sure it is something that people can remember... your simple business name works best. For example, my previous business name was Bird Street (which I loved), but my website was www.shopbirdstreet.com because www.birdstreet.com was taken. This may seem like a trivial thing to add shop, but people forgot all the time about the shop portion and I missed out on sales. Now I am changing the name to Deer Lovely (I love this too... yes I have a thing for animals) and I own www.deerlovely.com. 

Another inexpensive option for those that want to add a personal shop on their own website is www.shoppepro.com, I just found them a few month’s ago and started using them. They are only $10 a month and the owner is a stay at home mom, who started her own business and the women who work for her are super helpful. It is very simple and basic, but it’s a great starting point and they have a ton of templates to use and also a build your own. This is a great solution for those selling products that are not handmade or in addition to their Etsy site.

5. A Logo or a Look

Quality and consistency are important. (One of the things I love about Emmy's website, business cards, calendars... pretty much everything is that it is totally EMMY. The quality and look of everything is cohesive!) Order quality business cards!!! For a lot of people this may be their first impression of you. If you can afford to hire a graphic designer, do it... so many today are affordable and I'm sure both of us have a list of people that have helped us. If you can't afford it... I recommend www.uprinting.com. Great Templates (including build your own), great products, and great prices.

6. INC. 

Make sure you check if your business name is incorporated already in the state you live in. This might not be necessary for all of you, but if your business grows, you will need to Inc. and if someone else has incorporated that same name (another reason I decided to change my business name) this does not mean you can't use your business name. At this point it is a good idea to talk to a business lawyer to know your options.
 

7. Trademark

If your name is really original and your business is growing, you need to have it trademarked. (You can also get logos trademarked.) This is important and is one of the best things you can do to protect your business. However this is the most expensive and I recommend it for people whose business is really growing and expanding.  Especially if you grow nationally. 

Resource: www.uspto.gov

Thanks Sarah for taking the time to put this great posting together!

You're the Boss: Part 4

First of all... the winner of the Munchkin Things and Strings giveaway:

Yay!  Alissa of Rags to Stitches is our winner!  I will bring you your prize tonight.

Now, for Part 4 of the series I have been working on, You're the Boss.

I have gotten some great comments from my fellow business owners about this series... please keep them coming!  At the end of the series I will be sure to include all of your fabulous advice!

So today we are talking about

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Make Sure the Price is Right
Price your products reasonably, but don’t undersell yourself!  Remember to account for your supplies and your time, and leave room to grow into paying for labor costs.  If you can’t do all this… you probably shouldn’t be selling that product.

I'll be honest... when I first started selling my calendars I chose a random number out of the sky that I thought was fair, and that was my price.

I did not really know what my costs were.

I did not think about long-term strategy.

I just chose a number.

Nathan thought I was crazy.

He said that in this economy people would never pay that much for a calendar.

As it turns out... I chose wisely.

Nearly 600 people have not thought my price was too high, and it has allowed me the room for a marketing budget, to pay my employees, and to still make some money for myself.

Now, had I been strategic about my pricing {which is what I am suggesting that you do}, I would have taken these things into account before settling on a number:

1. What is my cost to make the product?

This is the most obvious and most important factor in determining your price, and yet most women that I talk to really do not have a very good idea of what their cost is.

You need to take everything into account: printing ink, packaging supplies, postage, thread... anything and everything that goes into making your product needs to be accounted for.  This can be tricky, especially when you are talking about something like printing ink, but do your best to estimate.  I started tallying pages when I had a new ink cartridge in my printer, and by the time that cartridge ran out, I had a pretty good idea of how much each calendar cost me to print.

Keep in mind that your costs will change, and you should be aware of any adjustments that need to be made.

When I first started making calendars, my costs were very high because I had to outsource binding and laminating.  I now own my own binding and laminating machines and have invested in a laser printer, which has greatly reduced my per calendar cost, but I do have to keep in mind the cost of the machines and their maintenance.

I read once that if the price of your product can not be at least 10 times your cost, you should not sell it.  I'm not sure that this is realistic with a handmade product, but I would say at least 5 times your cost would be a wise place to start.

2. Can I afford to hire help?

When I decided that I needed help with my business, I knew I had to figure out a way to be able to pay my friends.  {Although, admittedly, Brooke did work for free for quite a while... if you can find a friend like that... she's a keeper!}  Before I started selling calendars, I had worked for a brief stint at J.Crew.  I loved that job, but at $10 an hour, after paying taxes, arranging childcare, and purchasing a "retail sales wardrobe"... I was basically paying J.Crew to work for them.  I figured that paying my employees $10 was more than fair considering they can work in their pajamas, can bring their kids to work with them, can set their own schedule, and get to have a super-lot of fun doing it!

At first, I thought we would just keep track of Brooke's hours, and I would pay her $10 an hour.

The problem with that strategy was that we are often interrupted by children squabbling, or having to run to school for pick up, or a very important discussion of the latest One Tree Hill episode.

I needed a system that would be fair for both of us.

Now this is going to sound complicated and maybe a little overwhelming, but in the end this system has worked out fabulously for us.

I went through each step of the calendar-making process and determined how long it takes to complete.

I then assigned a dollar amount to that task, based on the notion that I would like to be paying the girls $10 an hour.  

For instance, putting tabs in the calendar takes about 12 minutes to complete, which means that in an hour one should be able to tab 5 calendars.  So "tabbing" is paid $2 per calendar.

Sometimes the girls are on fire, and can jam through their tasks super quickly.  There have been days that Brooke has made $30 an hour, which is fine because that just means that we have received enough orders to be able to pay her $30 an hour that day.  There are other days that work is slow, and we are more interested in chit chatting or eating, and the girls end up making only $5 or $6 an hour, but ultimately it evens out and ends up being fair for both of us.

One side note: I did end up giving the girls a little raise at Christmastime last year {and I do mean little}.  In addition to the money they earn for each task I now pay them $2 an hour.  I did this to help account for the times that they are doing a task {like preparing a package for shipping} that we have not assigned a dollar amount to.

3. What would a similar product cost at a local retailer?

This is kind of where the rubber meets the road for Hand Crafters.  The reality of handmade products is that they are more expensive to make, and therefore should be more expensive to purchase.  Unfortunately, some people just do not understand that concept.  Although I do believe that more and more people are willing to pay the extra cost to support small businesses these days, and those people will be your customers.

If you go to Staples you can purchase an 8.5" x 11" simple, plastic-covered Day Planner for about $20.  I sell my 8.5" x 11" blank Calendar Templates {which have a plain cover and no tabs or lettering on the months} for $28.  The Staples brand product has either week-at-a-glance or month-at-a-glance layouts, not both and uses a very cheap quality paper.  Mine include both week-at-a-glance and month-at-a-glance in one calendar and I use very high quality paper in my printing.  I also color code the holidays... a nice touch that you won't find at Staples.

You also won't find hand-decorated, hand-stamped, tabbed, personalized calendars at Staples.  But if you compare my fancy calendars to the closest match, like a bound Day Planner or something like the MomAgenda, they are very similar in cost.

However, let me emphasize... do not try to beat the local retailer's price!  Like I said before, a handmade product is more expensive to make and should therefore be more expensive to purchase.

The right customers will understand that.

The most important thing to keep in mind when determining your cost is:

Do not undersell yourself!

It makes me so sad to watch a Hand Crafter that is too busy to see straight and wondering where all their profit is going.  A good friend of mine told me once that she would rather have fewer clients that are willing to pay her higher prices than bargain pricing her products just to sell to the masses.

It was some of the best advice I ever got.

Lastly, remember that you can always change your price.  Do not think that just because you start out at one price means you have to keep selling your product at that same price.  You can raise or lower your price, depending on your circumstance.

When I first started selling invitations my minimum price per invite was $2.

I made no money.

Every few months I would raise my minimum price, until I finally came to an $8 minimum.

Now I actually make money selling invitations and the bonus is that I only get clients that really appreciate a quality, handmade product.

You're the Boss: Part 3

Looking for the Munchkin Things and Strings giveaway?  Scroll down or click here.

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Be Concentrated
If you are serious about wanting a successful business and not just a hobby, pick just one or two products and make them the best version of those products that you can.

I feel very strongly that if you have a home-based business you should stick to just one product, or a few very similar products.  

At least in the beginning.

All the more so if you have an Etsy shop.
I have never listed my invitations on Etsy.  I'm not sure why... I just have never done it.
Lately, I have been considering it.
However, if I do, I will open a different shop for my invitations.
I really like that when people look at my Much Ado About You shop, this is what they see:

Calendars... and then some more calendars.

It drives me crazy when I go to an Etsy shop and out of the twenty items listed for sale in the shop there are 18 different products.  I won't buy from a shop like that for two reasons:

1.  It tells me that they are not serious about their business.  They are grasping at straws trying to find a product that works... and FYI... they haven't found it.

2.  It tells me that I am going to get a crummy version of their product, because they haven't made enough of them to perfect it.

Here are some examples of shops that speak to my heart:

This shop offers several different types of accessories, but they all incorporate her beautiful, handmade rosettes.

Looking for an apron?  Here's where you will find aprons.  And some aprons.  And a few aprons.
I love it!

This shop sells adorable handmade baby shoes... just like it says.  I would feel confident ordering baby shoes here because she clearly makes a lot of baby shoes.  Sizing can be tricky with baby shoes... but I would trust her descriptions because she has sold 177 pairs of baby shoes.  Baby shoes... get it?

Again, this shop sells several different items, but they all incorporate beautiful handmade felt flowers.  There is consistency.

 

 Handmade headbands and hairclips.  Headbands and hairclips.  Headbands and hairclips.

You getting the idea?

So pick one thing {that you love to make, remember} and make as many versions of that one thing as you would like to.

But for now, stick to that one thing.

You're the Boss: Part 2

Today I am going to start breaking down my list of my

Top 10 Tips for Starting a

Successful Home-Based Business

So let's look at the first one:

Sell a Product that you Love to Make

Notice it doesn't say Sell a Product that you Love.  Remember that if your business thrives, you could potentially be making this product everyday for the next several years.  If it frustrates or bores you... you will wish you had decided to sell a product that you love to make!

Last year I put on a boutique, Much Ado About the Holidays, to introduce the 2010 line of calendars.  I had several friends that volunteered to help me that evening, in exchange for their 2010 calendar.  It was a win-win.  I decided to make aprons for each of them, so that the guests at the boutique would know who was there to assist them.

Here we all were, right before heading over to the boutique:

Aren't those aprons cute?

I thought so... and so did many people at the boutique.  You wouldn't believe how many women asked if they could order one of those aprons.  I had people offering me $100 for them.

But you know what?  I hated making those aprons.  I cursed my way through that entire project.  I was completely over it after the first one... and I made twelve!

I knew that if I started selling those aprons, one of two things would happen:
1. I would throw my sewing machine out the window, ruining my screen and possibly killing a child playing innocently below,
or 2. Nathan would kick me out of the house.

Calendars people... I sell calendars.  That's what I kept telling those women at the boutique.

I didn't even let my girlfriends keep the ones that I made them because I didn't want to have to make twelve more this year!

So really take the time to assess how much you enjoy the process of making your product.

If you are not passionate about what you are creating, then how can you expect your clients to be?

You're the Boss: Part 1

I was recently asked by Gussy to write a guest post for her blog, which will be posted sometime in the next week while she is on vacation.

{So be looking for it.}

I decided to write about starting a successful home-based business.  When I started writing it, I realized that I had a lot to say {shocking, I know} and so I thought why not make this a series of postings on my own blog? 

So here it is... Part 1 of You're the Boss.

I can't remember how much I have shared with you about my business, and rather than scan through the last three months worth of postings, I'll just tell you again.  If you know this story {or if you don't really care} skip to the list of tips below.

Okay, so in 2007 I started my Event Planning and Custom Invitation business.  I was so excited to be running my own business, but Event Planning was hard and stressful, and not really consistent.

A few months into my business I went searching around town for a calendar because things were getting busy and I was feeling disorganized.  Being extremely particular about my calendar, I could not find exactly what I was looking for.  So I enlisted Nathan, the Excel Spreadsheet Master {really, we always joke that if there is ever a reality competition show for people who make Excel spreadsheets, Nathan will be the Tom Colicchio of the show} to make me a calendar.  Then I bound it, decorated it, added a family photo and some bling... and had my perfect calendar.

When my friends saw it, they wanted one.  Then their friends wanted one.

Pretty soon I was working full time to keep up with the demand of my calendar business.  What, you say?  Calendar business???  Yeah... it was a surprise to me too.  I also thought I was an Event Planner.

In the last two years {in the middle of an economic crisis in our country, mind you} I have sold close to 600 calendars out of my little home office, and have hired six of my friends to work with me.  Things are going well for Much Ado About You.

As much as I love the creative outlet that my business provides, I also really love the business of it all.  I enjoy strategizing about ways to streamline my process and grow my company.  I have learned a lot through trial and error and by picking the brains of other Small Business Owners that I admire and respect.

I love sharing my experience with friends that are trying to start new businesses, so I wanted to share with you all my

Top 10 Tips for Starting a 

Successful Home Based Business

I will share the whole list with you today, then share more details about each item over the course of this series.  

Fellow Business Owners, please feel free to comment and share your own experiences!

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Sell a Product that you Love to Make
If sewing makes you want to throw your machine out the window, do not sell handmade quilts.

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Be Concentrated
If you are serious about wanting a successful business and not just a hobby, pick just one or two products and make them the best version of those products that you can.

-3-
Make Sure the Price is Right
Price your products reasonably, but don’t undersell yourself!  Remember to account for your supplies and your time, and leave room to grow into paying for labor costs.  If you can’t do all this… you probably shouldn’t be selling that product.

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Brand Yourself
No, don’t get a tattoo of your business name on your shoulder, but do create a logo that accurately represents yourself and your business. 

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Be Creative with your Packaging
Make your customer feel like they are opening a gift when their order arrives.

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Use Inexpensive Shop Hosting Services
Etsy and Big Cartel are two great shop hosting services that offer very reasonable rates.  Until you know that your business is profitable don’t waste any money building your own website.

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Start a Blog
Blogs are another great {and free} alternative to a website, and a great way to get the word out about your business.  Update your blog frequently and it will be likely to show up at the top of web searches when people are looking for your types of products.

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Be Organized
Organization with your supplies and products will make work much more enjoyable for you.
Organization with your invoicing and expenses will make work much more profitable for you.
Organization with your clients, like responding to emails in a timely manner and getting orders shipped quickly will make work much more marketable for you.

-9-
Take Advantage of FREE Marketing Opportunities
Social Networking sites are not only great for locating your long lost Kindergarten crush, but they have opened up the door to tremendous advertising opportunities for your home-based business.  Have a fan page for your business and post frequent updates about your shop.

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Have Excellent Customer Service
Ultimately, the best free advertisement is a happy customer!  Go above and beyond to ensure that your customers will not only want to come back, but will also be sending their friends your way.  People that are willing to spend a little extra for handmade products expect a little extra service to go along with the price… give them more than they expect!

Check back in the coming days for even more 

details about each of these ideas!