While the lockdown has introduced several challenges, it has also presented several opportunities for budding entrepreneurs. The pandemic has fueled the global growth of entrepreneurship. Many of these businesses are in the arts and crafts industries, with makers selling handmade items online and at craft shows.
Whether you’re a maker with years of experience, or you’re new to the industry, you’ll most likely sell your products at a craft show at some point. With increased competition, it’s important to streamline your operation. Here are a few tips from International Forester-Artist to help.
Is Your Enterprise Positioned for Growth?
While there are several different business structures to pursue, as a creative entrepreneur, there are benefits to registering your growing enterprise as a limited liability company:
- Limited personal liability
- Specific tax advantages such as avoiding double taxation
- Less paperwork and administrative hassles
- More flexibility for managerial distribution and profit-sharing
As each state stipulates different regulations around forming an LLC, it’s worth investing in professional assistance. Rather than paying hefty lawyer fees or attempting to navigate the process alone, you can file LLC in Texas online with a formation service.
Preparation Tips for Selling at Craft Shows
Make sure to keep an eye out for open calls and exhibition opportunities. From there, there are a few key aspects to consider when presenting your craft products to the world. The following areas will help to market your goods and keep the business running smoothly.
Designing Your Display
The design of your display plays a crucial role in the success of your business at a vendor show. Make sure that you incorporate brand colors and use bold signage to grab the attention of potential buyers.
Make sure that you present your products in a logical way, with prices easily readable. Hide extra merchandise neatly and make it easy for customers to move from one area to another. It’s also a good idea to use reusable materials for the sake of sustainability and saving costs.
Pricing your craft items can be tricky. Each item is made with love and attention, so the value is significantly more than a mass-produced item, not to mention the cost of the materials. Here is a basic formula to pricing your goods:
- Price AL Calculate the cost of supplies and add a predetermined amount for every hour spent (for example, USD $10)
- Price B: Multiply the cost of supplies by three
- Price C: (Price A + Price B) divided by two to get the average of both costs
It’s important to streamline your inventory management for efficiency. Here are a few tips:
- Keep a detailed inventory of stock
- Create a photographic record of your products (with names)
- Use an organized storage system that is easy to access
- Index and label your products
Research different payment systems and what infrastructure the venue offers. If using a credit card system, make sure that you have an easy way of issuing receipts. It’s worth considering how the cost of the transaction adds up. As many sales will be made with cash, it’s important to have adequate change on the ready.
Keeping Track of Sales
Craft shows are an informal trade setting, and it’s easy to become slack in tracking sales. Make sure that you have a streamlined process of tracking sales, and keep accurate sales records. Every small effort will make a big difference in preparing for tax season.