Craft Business Tips A to Z

A - Advertise

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Advertise - Successful business people must think about advertising. Advertising needn't cost a fortune though. There are many ways to advertise for little to no cost.

To advertise for free, find blogs that feature items similar to those in your shop. E-mail the blogger and ask if he or she would be interested in featuring your item. This tactic can also be applied to print media. Companies such as Lark Publishing look for artist submissions of images and craft projects. Getting exposure online and in print media can help to boost sales and pad a resume.

Other sites such as Facebook (see F) and Craftcult (see C) offer advertising space at a low cost. Facebook also allows artists to create a fan page for their store. This fan page can generate more interest and drive traffic to the Etsy store.

Artists need to also remember to advertise their products on the go. Business cards come in handy when networking with potential customers. Word-of-mouth advertising is also vital, so customer satisfaction has to be a high priority. Good service can translate to more sales while bad service can kill future business.

It is important to use a combination of advertising techniques to expand the customer base and reach a diverse audience. Artists who promote will reap the benefits.

B - Brand, Blog

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Brand - Customers want to be able to identify with your product. They want to be able to look at your store and understand the type of style, subject matter and quality they will receive when ordering from you. This is why artists need to pay close attention to branding their product.

Branding is a process of defining the visual qualities of your store. The products need to have a unifying element that ties them all together. For instance, a store could feature all modern-inspired items that use bold colors and simple geometric shapes. That same store should use logos, packaging, business cards and promotional materials that also use modern elements, bold colors and simple geometric shapes.

When branding, it is important to ask a few questions such as:

What are the three main visual elements that define my work?
Is their an overall theme to my subject matter?
Do my shop images, logos, packaging, business cards and promotional material complement the visual quality of my artwork? i.e. If the artwork is organic in nature, do the promotional materials convey that as well?
How is my work different from all of the other artists doing what I do? How do I stand out?
What three words would a customer use to describe my products? Can those three words apply to all of the products?

Blog - Blogging can be useful for artists who want to engage customers in the process and developments of making and selling art. Blogging can help to raise awareness of a product, provide free advertising (see A) and help the artist track his or her business journey.

Sites such as blogger.com and wordpress.com offer free blogging platforms that look professional and are simple to use. Bloggers needn't write a ton of content to stay current. A post a week is enough to generate interest.

Successful bloggers use some specific tactics to increase their blog followers. They invite guest bloggers to write a post, so that the guest will direct traffic to the blog. They feature other artists' items on their blog so that those artists will advertise the blog. They also join blogger groups of writers who cover similar topics. Each of these tactics, should increase a blog's following.

C - Craftcult.com, Craft Show Listings

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Craftcult.com - This website allows Etsy users to see how many new hearts they have received on their individual items and on their shop. Users need to click on the "heart-o-matic" link on the site and type their store's name in the provided space. A list will then be generated that shows all of the current and new hearts.

Users can also use Craftcult.com to find out if their store has been featured on Etsy's front page. Users need to click on "the vault" tab at the top of the page and then choose "search for member". Type the store's name in the space that pops up and a list will be generated of any past front page treasuries featuring items from that shop.

Craft Show Listings - There are a number of databases online that advertise upcoming art shows. I've compiled a list of some websites that feature craft and art shows throughout the country. Some of these sites require membership, but all are free.

D - Displays

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Displays - Any artist who hopes to participate in art shows, needs to think about booth display. Display elements include tablecloths, signs, banners, business card holders, display stands (such as jewelry stands for jewelers), and picture hangers (for 2-D artists).

Displays should be visually-unified and welcoming. They should allow the customers easy access to the artwork so that they can adequately view all pieces. Displays should also visually represent the artist's brand (see B).

For display ideas, artists can look on photo sites such as Flickr.com to see successful artist's booths. Though artists shouldn't steal the look of any one booth, they can incorporate great ideas from many booths and refine them into a useful booth display.

E - Etsy

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Etsy - Really, what else is there to say about Etsy.com, except that it is THE place for art business. Not only does Etsy provide artists with a free shop and low listing fees, but it also offers a wealth of information in their seller handbook.

For those still in the dark, Etsy is an online marketplace for artisans and those selling vintage items. Etsy is a great way for artist to start small and build their brands. Artists pay by listing, so they can choose whether they want to list a lot of product or just a few things.

Besides the shop, artists can find selling and marketing tips in the "seller handbook" section. Some helpful tips include how to take quality product photos, how to create gift certificates, and how to increase your item views. Because of these useful business aids, Etsy is a wonderful place for artists to start and learn the basics of online art sales.

Ofcourse, every good thing has a flip side, and Etsy is no exception. The down side to Etsy is the fact that it is saturated with artists. A new artist on Etsy really has to struggle to be seen on such a huge site with so many competing stores. If an artist depends only on the Etsy search tool, he or she will see very few sales. This is why artists must advertise (see A) and promote their items off of the site. If an artist drives traffic to his or her particular shop, the sales should go up.

F - Facebook Fan Page

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Facebook Fan Page - Facebook.com is a useful social networking site that can help artists to generate traffic to an online store. Artists can create a fan page for their artwork and invite friends to become fans.

A Facebook fan page can be created for free. It should feature a variety of artwork images, a description of the artist's business and a link to the online store. The fan page can be used to introduce new products, announce promotions or sales and advertise upcoming events such as art shows.

Once a fan page has been created, artists can also purchase advertising space on Facebook to promote their fan page and their site. The advertising cost is relatively low and the ads will be targeted to people who show an interest in similar shops and items.

G - Good Customer Service

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Good Customer Service - Good customer service is the best advertising an artist can create. It is important that artists provide quality products and excellent customer service to generate repeat sales and word-of-mouth advertising.

One of the ways artists can ensure quality costumer service is by providing clear communication. Create a set of policies that clearly express information such as:

When should the costumer expect to receive their item after ordering?
What is the return policy?
What payment types are accepted?
What to do if a refund or exchange is needed.

If clear policies are set upfront, customers can avoid frustration during the buying process.

Shop owners should also e-mail customers as soon as a purchase is made to let the customer know that they received the order and will be mailing it out soon. Once the order is mailed, artists should e-mail the customer with the tracking number for their package. It's also helpful to tell the customer to contact them with any questions. By maintaining an open stream of communication the seller can make the customer feel more comfortable and more satisfied with the buying experience.

H - Hand Gel

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Hand Gel - This may sound like an odd tip, but antibacterial hand gel can be invaluable at art shows. Not only does it help to keep vendors healthy while handling all of the germ-laden money, but it can help to disinfect jewelry. In this way, jewelry artists can allow customers to try on jewelry such as earrings. They can just coat the earring posts in hand gel and rub them clean with a cloth.

I - Inventory

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Inventory - For artists who participate in craft shows, building inventory is a must. Artists must have an idea of an adequate amount of product to take for an art show. This will vary for each artist. As the inventory dwindles, the artist must create more pieces to stay ready for upcoming art shows.

Even if no art shows are currently looming in the future, artists should keep their inventory up to date in case an opportunity presents itself. Artists should also create a way to adequately label and guage the amount of product they have. A simple graph can help artists to quickly assess the amount of product they have and how much more they need to produce.

Of course, by creating surplus inventory, artists will also need a way to store the inventory until the shows. For painters, this might mean finding an extra room to store paintings. For jewelers, they might need to buy a set of bins and labels to store jewelry.

J - Just Smile

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Just Smile - This tip carries a few meanings. First, it is important for artists to appear pleasant and welcoming at art shows. They shouldn't try to oversell their product. If the product is good, it will sell. Instead, artists should just smile and let the customer know that they are there if they have any questions. This method will make customers more likely to browse and feel comfortable at the booth.

Also, it is important for artists to remember that there will be up times and down times. Sometimes running an art business can be frustrating, but it is important to persevere. So when it seems like nothing is working, just smile and push through until you find something that does work. The ability to adapt to problems is the one thing that will ensure future success for any business person.

K - Knucklebuster

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Knucklebuster - A knucklebuster is a manual credit card machine that can be used to process credit cards and produce receipts at craft fairs. Knucklebusters can be purchased through sites like Mrimprinter.com, along with receipts and a custom-printed plate.

The plate should be printed with the name of the business and the name, if seperate from the business name, that will eventually end up on the customer's credit card bill.

When using the knucklebuster, artists should also make sure to manually write down the card's expiration date and whether the card is Visa, Mastercard or Amex. The customer should also sign the receipt to finalize the sale.

Knucklebusters can be used in conjunction with a business bank account, or a credit card processing account with companies like Paypal or Propay. In the first case, the receipts may need to be given to the participating bank. When using Paypal or Propay, the information on the receipts can be entered into the computer manually and then the receipts can be saved for the artist's reference.

L - Log Work Hours

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Log Work Hours - This tip helps an artist predict whether it's really possible to make a living on selling art along. By tracking work hours and their monthly earnings, artists can determine their hourly wage. This hourly wage may be livable to some people and unsustainable for others. For some, they may consider getting a part-time job until they are able to raise prices or generate more sales in a month.

M - Moo Business Cards

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Moo Business Cards - Moo.com cards are actually more than just business cards. This company allows an artist to order a box of regular or mini cards featuring a variety of their images (a different one for each card). The Moo business cards are really like a mini portfolio.

Artists can choose to keep the cards to show to prospective clients or pass them out at shows and events. Either way, the cards provide a professional way for artists to show off their shops. Each card is printed on glossy cardstock in brilliant colors. They clearly and crisply present artwork in a vibrant format.

Moo.com also offers other accessories such as stickers, greeting cards and post cards. Post cards can be particularly helpful in preparing for an art show, as they can be mailed to prospective customers. The stickers can also come in handy when packaging artwork to ship. A photo sticker placed strategically on tissue paper wrapping can create a polished and professional look.

Whatever the needs, Moo.com provides many business solutions for artists. To go to their website to learn more, simply click on the link in the side bar of this page.

N - Network

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Network - Networking is one of the most useful ways of finding new opportunities to sell art. Making friends with other artists allows you to pick their brains for useful art business information, such as upcoming art shows, selling tips and time management.

It is true that WHO you know is sometimes as important as what you know. You could be qualified for an art show, but maybe the organizers of that show know other qualified artists that they'd like to feature. Is it fair? Maybe not, but it happens all the time. It never hurts to get to know people that can advise you on your art career.

A key rule of thumb, as corny as it sounds, is to be friendly and pleasant to show organizers and other artists. If people think you are easy to work with, they will want to work with you again. Making a good impression is so important to securing future show spots.

Bottom line, don't burn any bridges. Your talent is very important, but no one will want to work with a talented snob.

O - Outright

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Outright - Outright.com is an online book-keeping software program that allows artists to track their income and expenses. This software documents spending and income and can be linked to a Paypal account. It will automatically deduct or add money based on Paypal transactions. Spending or income can also be entered manually.

Outright.com is a useful tool for tax season as well. It will tally up individual business expenses and income and divide them into categories used by tax preparers. Doing taxes for a business can be incredibly difficult and this software helps to make it a bit easier by preparing all financial information.

Another great aspect about Outright.com is the fact that it is free to use. Artists simply have to sign up with a username and password and then grant access to a Paypal account. Outright will track expenses as they happen and generate timely reports of earnings or losses.

P - Paypal (Virtual Terminal), Propay

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Paypal - A Paypal account is essential for artists who wish to sell their wares online. Paypal.com allows customers to make payments via credit card and the payments are safely processed and deposited into the artist's online account. The funds can then be transferred to a local bank or used directly from the online Paypal account.

It is free to register and fairly simple to use Paypal. Artists need to sign up and register a username and password. They then need to verify the account by registering either a credit card, bank account or debit card. Money can then be deposited into the Paypal account using one of these methods. When the artist receives payments, those payments are credited in the Paypal account and can then be transferred to either the bank account, credit card or debit card. Paypal does charge a 2.9% fee to process payments.

Paypal also provides a number of services that members can take advantage of. Paypal users can agree to turn their Paypal account into a money market account that gains interest. Account holders can also sign up for a Paypal debit card that can be used to purchase goods using direct funds from the Paypal account. Perhaps the most useful tool for artists though, is the Paypal Virtual Terminal.

The Paypal Virtual Terminal allows business owners to process credit cards using the computer. It does cost around $30 a month, but for artists who participate in an art show each month, it quickly pays for itself. The great thing about the Virtual Terminal is the high volume of payments that can be processed per month. The Virtual Terminal allows artists to process over $10,000.00 worth of sales a month. It charges a percentage fee on each charge, and the percentage decreases as the number of sales rise. The highest percentage fee is 3.4%.

Artists can use Virtual Terminal with a manual credit card machine or knucklebuster (see K). They simply need to swipe the credit card and make sure the numbers imprint on the receipt. They also need to mark the type of credit card that was used, i.e. Visa, Mastercard, etc. Finally, they need to get the expiration date and the contact information for the person using the card. This information can then be entered into the Virtual Terminal later that night, after the show. At shows where WiFi is available, artists can use Virtual Terminal at their booths from their personal computer.

Propay - Propay is another website that provides a credit card processing service. Unlike Paypal, Propay exists solely to process credit cards for business people. Many artisans prefer Propay because the membership fee costs less, even though the processing fees are roughly the same. Propay uses a graduated membership system with different yearly membership fees.

The least expensive Propay membership, at arond $35.00 a year, allows artists to process Visa and Mastercard but they cannot exceed over $1000.00 in sales each month. The most expensive plan, at around $300.00 a year, allows artists to process Visa, Mastercard, Discover and AmEx and the monthly processing limit starts at $3,000.00. Artists can apply to expand the limit, but there are no guarantees that they will be able to process over $3,000.00 a month. For many artists though, this limit is very reasonable.

Q - Question the Pros

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Question the Pros - The best way to be successful in the art business is to ask the advice of people who have already succeeded. There are a number of ways to do this both virtually and in person.

To start, take advantage of the Etsy forums and their "Quit Your Day Job" series. Though forums can be bogged down with people wasting time and chatting about who knows what, some posts can be extremely helpful. I find that the "Business Topics" section is best for useful advice. Many successful artists post in that section and are quick to share knowledge with newbies.

The "Quit Your Day Job" series is a string of stories featuring people who were able to make a full-time living from their art business. They share the ups and downs of making a full-time living from their art. It's useful to hear what has helped in their success and also what challenges they have faced in the process.

Participating in art shows is another wonderful way to pick the brains of seasoned art pros. Get to know the people participating in the event and ask them about their businesses. Each person will probably be able to offer something useful, and it never hurts to network (see N).

Taking an art class can also expand access to other artists in the area. Look for community art classes that target art educators and art business people. These classes can provide invaluable information and help you to network with many other artists and art educators.

R - Receipts

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Receipts - Receipts are important for both sales records and to present a professional business appearance. Luckily receipts are easy to produce in a couple ways.

When using a knucklebuster (see K) to process credit cards, the receipt is automatically generated with the swipe of the machine. The artist simply needs to input the sales information as well as the expiration date, type of credit card and customer contact information. The sheet then produces a carbon-copy that can be given to the customer and an original receipt that the artist keeps.

When processing a cash transaction, artists can use carbon-copy receipts purchased from a local office store like Kinkos, Office Depot or Staples. They simply need to fill out the sales information, add the tax and provide a total at the bottom. These sheets can then be separated so that both customer and artist can have a copy.

The receipts can be kept in a file box, with a different file for each show. This helps artists keep their sales straight and provides clear, organized records that will help at tax time.

Any receipts from purchases should also be kept and tracked using book-keeping software such as Outright.com (see O). Artists should keep receipts from purchases such as the following:

Supplies
Gas for riding to and from art shows
Application and booth fees
Etsy fees
Paypal fees
Legal or tax services
Workspace improvements
Internet (and possibly phone) bills
Any other related expense

S - Study, Small Business and Self-Employed Tax Center, Square

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Study - Artists should continually strive to advance their skills. They might not do it by taking a traditional class, but they can watch tutorials online, read instructional books and even participate in the Etsy labs to learn new techniques. Art business people should also study up on business strategies. Business has to be as important as art in order to make a full-time living with art sales.

Small Business and Self-Employed Tax Center - The small business and self-employed tax center is a page of the IRS website that helps small business owners find all of the necessary tax forms and documents. Artists can register their business and apply for an EIN (Employer Identification Number) that allows them to hire help. Artists can also find important forms for filing their yearly income tax.

Artists who plan on pursuing a full-time art career need to register with both state and federal government agencies to be able to collect sales tax and file income taxes. Many art shows do not allow artists to participate unless they have the required state documents to collect the sales tax. It's also just important to be professional to prevent any future problems with audits.

The small business and self-employed tax center is a wonderful resource for anyone seeking small business tax information at the Federal level. Each state also has sites for small businesses though, and don't neglect viewing that information to be prepared as you start your business.

Square - Square is a service that will process your credit cards through your smart phone. Sign up at http://www.squareup.com/ and they will send you a free card reader. Use the reader with the Square app on your smart phone to process credit cards at shows. You will only need to pay a small credit card processing fee for each transaction, which is much better than paying a monthly fee AND a processing fee, like most credit card processing companies.

T - Twitter

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Twitter - Twitter.com is a fast and efficient way of alerting customers to deals, new products and events. Twitter.com allows users to post small announcements of 140 characters or less. These announcements can feature links, but no pictures or other html.

Because of the space limitations of Twitter, two sites offer services to shrink URL's to fit on the Twitter posts. These sites are bit.ly and tinyurl.com. Simply go to either one of these sites and type in the original URL. The site will then generate a much smaller URL that can be posted into Twitter. This allows a business person to link to an Etsy shop or a blog.

Twitter can also be linked to a Facebook fan page (see F). This will automatically input any fan page updates directly on the artist's Twitter page. This is a great way for artists to make announcements without having to go back and forth between social networking media.

Business owners can also learn more about Twitter's features in the Twitter Business Tips Center. This section will give business owners information on how to promote their wares and increase customers by using Twitter.

U - Understand Your Target Market

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Understand Your Market - Every small business person has to understand his or her target market. They must know who they are marketing to and what that group of people values.

An artist who sells high-cost sterling silver and gold jewelry probably won't be selling to teenagers, whereas a funky artist who creates plastic jewelry out of shrinky dinks might. Artists need to continually think about who their work is intended for. This doesn't mean that they have to change their work to fit a different market, but instead find the market that is perfect for their work.

Artists can look for certain variables in the market to determine their target market. These variables include age, gender, financial affluence, geographic location, and even whether or not the target market are parents. Each artist or crafts person will have different criteria for assessing their target market, but they should continually be thinking about who could best use their products. For instance, a crafter making baby blankets probably wouldn't want to participate in an art show on a college campus. Even though there may be parents there, the concentration of parents would be less than if that crafter was at a street festival for families.

By understanding the target market and choosing to participate in events that appeal to that market, an artist can maximize his or her earning potential. Artists can also spare themselves the time, money and effort of participating in an event that doesn't adequately showcase their work for the right market.

Though no event is ever totally targeted to only one market, artists can use some smart business sense to pick events that will get them the most contact with their target market. In this way, artists can be even more successful and build a strong customer base.

V - Value Your Time and Work

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Value Your Time and Work - Crafters and artists face a lot of competition when trying to sell their goods. Sometimes it is tempting to lower prices to compete with all of the other art businesses online. Though this is tempting, artists should never sell themselves short by devaluing their work. Instead, hold the work to a higher standard and take pride in your ability to offer a unique, high-quality product that customers will recommend to friends and family.

Though artists need to price their work realistically to compete, they need to find a comfortable price point that will provide them with an adequate hourly income (see L) and still produce regular sales. If the work doesn't sell at the price, it may need more advertising, marketing or exposure at art shows and events. Don't immediately drop prices if items aren't selling. Instead, give the business time to build a loyal customer base. This could take six months to a year. If, after the first year and excessive marketing, the sales are still slow, than it might be time to think about slightly lowering prices.

W - Wholesale

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Wholesale - Wholesale orders can help artists stay afloat and produce an income apart from online and show sales. Wholesale orders are usually placed by shops or art dealers for a set number of a particular product. The shop owners receive a discount by ordering in bulk. By selling wholesale artists also gain greater exposure and can sell their work in different parts of the country.

The average wholesale price will be 60% of the normal purchase price of the item. Some artists also offer discounts to wholesale buyers when they purchase over a certain amount of product, as determined by the artist. Though the artist loses 40% of the income, they also don't have to worry about sales or advertising for those items. In this way, the artist might be making only slightly less than he or she would normally be making on the items.

To market items to wholesalers, artists need to create a line sheet. A line sheet is a document that showcases that artist's work by piece. The line sheet should show the following pieces of information for each item:

A high-quality photo
Suggested retail price
Wholesale price per # of items
How long from point of purchase wholesalers should expect to receive items
Materials used in creation of product
Artist contact information

It is important for artists to have a line sheet ready at shows and online if wholesalers want to quickly review the prices. Having a line sheet handy could translate into immediate orders and possible steady future business.

X - eXtra Order Sheets

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eXtra Order Sheets - When participating in art shows, instances can occur when someone likes an item, but wants it in a different size, color or format. In this case, artists should have order forms handy so that they can immediately take an order for an alternate product.

By having order forms handy, artists can receive on-the-spot payment and increase sales. It is important to provide the customer with a time frame in which they should expect to receive the order. It is also important to make sure the customer has adequate contact information in case any problems arise. Simple order sheets can be printed up at home and filled out by hand at an event or art show.

Order forms should include the following information:

Customer's shipping address and contact information
Item order
Dimensions of item
Materials used to make item
Colors of item
Size of item
Price of item
Item shipping date (The latest date on which the item will be shipped)

Y - You Own It

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You Own It - Running a business means that you own any successes and failures. Successful business owners take charge, work hard and adapt to adversity to make their businesses work.

Small business owners have to be master problem solvers and incredibly self-reliant. That doesn't mean that they can't ask for help, but they have to be motivated enough to make that help work for them in their business. An art business requires daily hard work and dedication that not everyone anticipates. It also is filled with many disappointments, both financially and professionally. Artists must know how to pick themselves up, brush themselves off and persevere through any tough times.

Whether your business is a success or a failure, remember that you own it and only you can make the changes necessary to make it great.