Posted on: 16 October 2015
Taking strides toward bringing your crafting hobby to the next level can be exciting. Making the business plan for your new business venture may seem intimidating at first, but being sure to include these key things will keep your plan on the path to success.
Where Your Materials Are Sourced
Depending on your craft you may need a lot of supplies. In order to save money you may choose to source those supplies from a wholesaler or even out of country. Making contact with potential companies for samples to ensure their crafting supplies are of the quality you need is important. It's also critical to talk to these companies and make sure they can supply the quantity of supplies you need so you don't run into supply issues.
Also knowing where you'll source your crafting labor is important. As you grow you won't be able to make everything by yourself, you're going to need help. You may be able to outsource to a company to hand make your products or hire employees. Knowing your labor costs as your grow will help keep your business profitable.
Your Target Market
Identifying your target market is one of the key aspects of business success. Certain craft markets, such as jewelry, can be saturated with product. You have to know where your crafts fit in. You don't want to appeal to everyone, the key to making your business take off is to identify a niche your craft fulfills. You can appeal to everyone from children to a future bride. The important thing is you identify your ideal customer and brand your business toward that person. Having your target customer down on paper, knowing how you'll secure their business is a great way to attract investors.
Costs Of Funding Your Business
When mapping out the financial side of your craft business it's best to be conservative. It always takes longer than you expect to see revenue, and things will usually cost more than you expect. You'll want to know how much it costs to make your product from the labor down to the tiniest glue dot used. Then you'll want to know how much profit you expect to yield from each piece you make, and how much you expect to see after taxes.
Where You See Your Business
After you have the nitty gritty of the financials of your business plan mapped out, you'll want to figure out where you want your business to go. Do you want to have an online store, or become a retail giant? The beauty is you get to decide where you take your business. In your plan, include when you want to expand your business and the financial costs of getting there. The more thoroughly you map this out, the more competitive your business plan will be.Share