Starting a Craft Business

Gather your raw materials One of the most challenging aspects of starting a craft business is unearthing sources for affordable, high-quality supplies and equipment.

I recommend:  The National Craft Association sells wholesale source directories for 12 craft categories. At Create for Less you can buy supplies in bulk and at wholesale prices. Wholesale distributor J&R Industries specializes in art and craft supplies for businesses. And don’t forget two sources that are right under your nose: By searching for “craft supplies” on eBay, you can find bargains on materials that are sold in lots. Also, look for suppliers in your local business community by consulting the online phone book, Superpages.com.

Set your prices Calculate your costs and research what the market will bear for your products. What else do you need to consider before you put a price tag on your merchandise?

I recommend:  See how William Lasley, a veteran craft manufacturer, breaks down the pricing process. Find tips on pricing and other aspects of running a craft business in The National Craft Association’s Business Builder Kits.

Meet your market Attend national craft shows, wholesale gift shows and similar events to meet the industry’s movers and shakers, and to stay on top of who’s selling what.

I recommend:  Start planning your sales and marketing tour by checking The National Craft Association's event calendar. If you want to sell direct to consumers, Craftmaster News lists consumer craft shows by state. Once you have a track record, consider expanding your market by hiring a sales rep who will sell your products at wholesale. Find a rep by consulting the Nationwide Directory of Wholesale Reps.

Stay on their radar You don’t have to spend a fortune to create memorable marketing materials to distribute to business contacts as well as family members and friends.

I recommend:  Send postcard mailers that feature photos of your products, to. The United States Postal Service’s low-cost NetPost Premium Postcard Service makes it easy to design your own postcards. Download HP.com's how-to guide for creating a marketing brochure. Entice people to make return visits to your Web site by adding fresh content on a regular basis. That could be in the form of a weekly contest for free merchandise (a good way to introduce new customers to your products). Or start a blog, which you can establish through a service such as Typepad.

Discover your inner accountant Running a business means recording, juggling and analyzing numbers. Fortunately, there is software for nearly every kind of recordkeeping and number-crunching you might need.

I recommend:  Invest in a bookkeeping program such as Quicken Home & Business so that you can quickly record your income and expenses. You can’t accurately price your products if don’t know how long they take to produce. Use time sheet software such as Timesheets Lite. One of this program’s helpful features is its ability to create activity charts that show you how much time was spent on each project.